PCTEL Inc. (PCTI) lowered its revenue target for the first quarter, saying delayed spending by wireless carriers has hindered its order rate during the period.
The company, which makes antenna and scanning receiver products, said the delays have resulted in order flow for its scanning receiver product line to run at approximately 60% of its historical run rate.
As a result, the company expects to record revenue of $16.5 million to $17.2 million in the first quarter, down from the $19 million to $20 million it had previously expected.
"This reflects carrier decisions regarding budget release and the timing of market by market LTE rollouts rather than an industry contraction," said Chairman and Chief Executive Marty Singer.
A number of U.S. carriers, including Sprint Nextel Corp. (S) and AT&T Inc. (T), have been spending heavily to roll out faster fourth-generation networks known as 4G LTE.
Carriers are trying to convert customers to the speedier network because it requires less capacity to deliver data and can free up constraints on their older 3G and 2G networks.
Shares of PCTEL closed Thursday at $6.95 and were inactive in premarket trade. The stock is up 1.6% since the start of the year.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207; email@example.com