3par,Inc. (PAR), an information storage solutions provider, Tuesday said it expects an increase in revenues for the first quarter from a year ago, but below its previous forecast. The company also projected a loss for the first quarter and revised its forecast for the full year, hurt by a dampened economic environment. The company provided its revenue guidance for the second quarter, also below current Street expectations. Following the announcement, 3par shares plunged over 21.40% on the New York Stock Exchange.
Fremont, California-based 3par said net loss for the first quarter would be in the range of $0.04 per share to $0.03 per share.
On average, fourteen analysts polled by Thomson Reuters expects the company to report earnings of $0.01 per share for the first quarter. Analysts estimate typically exclude special items such as one-time charges or gains.
The company projects non-GAAP net loss for the first quarter in the range of $0.01 to $0.00 per share and also said the difference between the GAAP and non-GAAP net loss is primarily due to an anticipated non-cash compensation expense of $0.03 in the aggregate.
Revenues for the first quarter are expected to range from $44.2 million to $44.5 million, which represents a 3% to 6% increase over the same quarter a year ago, but below Street estimates of $49.10 million. The currently projected revenue is also below the previously provided revenue forecast that ranged from $48 million to $50 million.
The company attributed the anticipated decline in revenues to installation delays at customer sites that in turn lowered revenues from shipments out of its backlog as well as a decline in demand that stemmed from the economic downturn.
Looking forward to the second quarter, the company expects revenues in the range of $43 million to $47 million, below the analysts' current view of $50.72 million.
For the full year 2010, the company revised its forecast and currently projects non-GAAP earnings in the range of $0.00 per share to $0.10 share, below the streets estimate of $0.16 per share. The revision in earning forecast was primarily due to continuing weakness of the global economic situation and the relative weakening of the demand picture from a bookings perspective towards the end of the first quarter.
Revenues for the full year is now estimated in the range of $190 million to $205 million, below the analysts view of $210.31 million.
PAR closed Tuesday's trading at $11.45, up $0.54 or 4.95%, on a volume of 0.59 million shares on the NYSE. In after hours, the stock lost $2.45 or 21.40%, to trade at $9.00.
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