Shares of Emcore Corp. plunged 18% toward a more than 10-year low in premarket trading, after the optical networking company warned of a revenue shortfall, citing the negative effects of the U.S.-China trade war. The company said late Thursday that it now expects third-quarter revenue of $17.0 million to $17.5 million, below its previous guidance range of $20 million to $22 million. The FactSet revenue consensus was $21.4 million. “Our chip product sales, and GPON in particular, experienced a significant decline in the third quarter, largely due to additional negative effects of the trade dispute with China,” said CHief Executive Jeffrey Rittichier. The company also said capital spending by multiple-system operators within the cable TV market has remained soft, relative to expectations, while demand for its Satcom and inertial navigation products remained robust. The stock, which is on track to open at the lowest level seen during regular session hours since March 2009, has tumbled 20.9% over the past three months, while the PHLX Semiconductor Index has slipped 1.4% and the S&P 500 has gained 3.2%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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