Oshawa, - Cygnal Technologies Corp., a communications network service provider, reduced its full-year earnings forecast Thursday after its third-quarter profit slipped to $1.1 million and revenue dropped almost 12 per cent.
Trumpeting its 15th consecutive profitable quarter, Cygnal reported Thursday earnings of seven cents a share, compared with $1.15 million or eight cents per share a year earlier.
But revenue for the quarter ended Sept. 30 fell to $39.3 million from "an unusually strong" $44.5 million last year, the company said.
"Cygnal's third-quarter results, compared to last year, were expected because the third quarter of 2001 was unusually strong," chief executive Doug Young said in a release.
"That said, we are pleased with our performance through the first nine months of this year - 12.7 per cent revenue growth and earnings per share of 14 cents."
Cygnal confirmed its earlier revenue projections of $150 million to $160 million "towards the top end of that guidance" for fiscal 2002.
But it cut its full-year earnings forecast to a range of 17 to 20 cents a share "to reflect higher than usual provisions due to current economic circumstances and the generally competitive nature of the industry today."
For the first nine months of fiscal 2002, revenues totalled $117.7 million, up from $104.4 million. Earnings totalled $2.2 million, compared with $2.9 million -- before goodwill amortization -- as the tax bite jumped to $1.6 million from $700,000.
Cygnal Technologies Corp. calls itself Canada's leader in the design, integration, installation and maintenance of wired and wireless broadband, data and telecommunications networks.
With headquarters in Oshawa, Cygnal (TSX:CYN) has more than 600 employees in 20 offices across Canada.
In trading on the Torontoo stock market Thursday, Cygnal shares fell 20 cents to $2, a drop of about nine per cent.
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