Stock Market Chumps..........9-06-06

Carrier Access Corp. (CACS)

Last Trade:	6.40
Trade Time:	11:34AM ET
Change:	2.72 (29.82%)

Carrier Access Corp. on Tuesday cut its third-quarter outlook on significantly lower order flows and bookings in August.

The broadband communication equipment maker now expects to post a third-quarter adjusted loss of 11 cents to 16 cents a share, compared with the prior expectation of third-quarter earnings of between breakeven to 1 cent a share.

Net loss for the quarter is now projected to be in the range of 14 cents to 19 cents a share on revenue of $16 million to $18 million. The company had previously forecast net loss of 1 cent to 4 cents a share.

Carrier's Chief Executive Officer Roger Koenig said the August orders and shipments were hit because of a customer ordering less than what was expected, primarily due to the deferral of certain projects until 2007.

For the third quarter, analysts on average expect the company to earn 1 cent a share, excluding exceptional items, on revenue of $26.2 million, according to Reuters.


Komag Inc. (KOMG)

Last Trade:	31.26
Trade Time:	11:38AM ET
Change:	5.00 (13.79%)

Komag Inc. a maker of computer disk drive components, on Wednesday cut its revenue and net margin forecasts for the third quarter due to "slower than normal" demand, sending its shares down 10 percent.

Based on the current demand pattern, Komag said, revenue could be flat to up 3 percent from the second quarter, compared with its previous guidance for a rise of 5 percent.

It said net margin could be in a range of 14 percent to 16 percent, including stock compensation expense. It previously forecast 16 percent to 17 percent.

The company said its capacity expansion plans were on schedule, with expectations for total third-quarter capacity of 39 million finished disks, up from 36.6 million in the second quarter.

Finisar Corp. (FNSR)

Last Trade:	3.25
Trade Time:	11:39AM ET
Change:	0.45 (12.16%)

Finisar Shares Fall in Premarket Trading After Issuing Disappointing 2Q Guidance

Shares of Finsar Corp., a maker of fiber optic systems for telecommunications networks, declined in premarket trading Wednesday, a day after the company reported break-even first quarter results and issued a disappointing second-quarter outlook.

In a conference call with investors after posting first-quarter results, the company said it expects second-quarter earnings of 3 cents per share on revenue of $106 million to $112 million, slightly short of analysts' expectations.

Shares of the Sunnyvale, Calif., company fell 46 cents, or 12 percent, to $3.24 in electronic premarket trading.

"While we believe this guidance is conservative, there may be some disappointment there was no upside," wrote Jefferies & Co. analyst John Lau. He has a "Buy" rating on the stock.

The company said gross margins shrank sequentially because it is selling more lower-margin LAN/SAN products relative to the higher-margin Metro products. Finisar said it expects the product mix to shift to more favorable margins this quarter.

In Tuesday's aftermarket session, shares fell 9 percent.

Needham analyst John Harmon said that sell-off was a knee-jerk reaction to the margin decline. The company reported gross margins of 37.1 percent, while the company had guided to a range of 37 percent to 39 percent.

"Investors want to see margin expansion," Harmon said. "It's mostly just a mix issue, which is something that's out of their control. They're selling more products that have lower margins, but the mix of the higher-margin products should pick up."