Redback Networks, Inc. (RBAK)

[PowerPole]

Redback now sees fourth-quarter revenue of $64mm...

By Gabriel Madway
Last Update: 6:05 PM ET Jan 4, 2007

http://tinyurl.com/ycxepw


SAN FRANCISCO (MarketWatch) -- Redback Networks Inc. (RBAK) late Thursday forecast lower-than-expected revenue of roughly $64 million for fourth-quarter ended Dec. 31.

"Unfortunately we failed to meet our revenue targets due to, among other reasons, distribution channel disruptions caused by the timing of our proposed acquisition by Ericsson, and lower-than-expected revenue from our older SMS product line as we transitioned our largest SMS customers in the fourth quarter to our SmartEdge products," said Kevin DeNuccio, president and chief executive, in a statement.

"We expect that substantially all of the delayed purchases will become revenue in 2007." Redback is based in San Jose, Calif.