Tag - Nwk

Shares of Network Equipment Technologies, Inc. (NYSE:NWK) are getting trounced in pre-market trading after the telecommunications equipment maker said late Thursday night that it expects revenue for the first quarter of fiscal 2009 to fall below Wall Street expectations due to a shortfall in revenue from government programs. The company currently expects revenue for the quarter to be in the range of approximately $16 to $20 million.

“We continue to see many government programs in which we can participate. However, it has become apparent that at least in the near term we won't receive the volume of orders we had previously expected,” Nicholas Keating, the firm's President and CEO said in a press release.

Shares sunk 27%, or $1.35, to $3.65 in pre-market trading. For detailed price information and recent news stories about Network Equipment Technologies, click NWK.

The Russell 2000 (NYSE:IWM) managed a small rise on news of mixed economic reports. The small-cap index climbed 1.30 points, or 0.18%, to 713.57, its fourth consecutive rise. The Dow Jones Industrial Average added 20.20 points, or 0.16%, to 12,626.03.

On a year-to-date basis, the Russell 2000 has shed 6.85%, while the Dow is down 4.82% and the S&P 500 has retreated 6.75%.

Small-cap stocks spent the morning in negative territory on news before the opening that jobless claims for the week ended March 29 unexpectedly increased 38,000 to 407,000, according to the U.S. Labor Department. That’s the highest level in more than two years and a sign that economic growth has stalled.

The small-cap index recovered and almost touched the flat line at about 10 a.m. ET on news that the U.S. service sector contracted less than expected in March.

But stocks quickly lost their footing again, falling to a session low of nearly 706 at 11 a.m. ET, before beginning a slow climb upward. The bullish sentiment, which . . .