Tech Biz Update: ZTE Warning Has US Telecom Stocks On Watch
ZTE Corporation, which is the second-largest telecom equipment maker in China, warned of a third quarter loss of as much as 2 billion yuan, or $319.1 million, and shares plummeted by 15.1 percent in Hong Kong trading Monday. The company is blaming delays in certain overseas deals along with several low-margin contracts in Europe, Asia and the market in China. Accordingly, shares of Cisco Systems (NASDAQ:CSCO), Alcatel-Lucent (NYSE:ALU), LM Ericsson Telephone Company (NASDAQ:ERIC), Juniper Networks (NYSE:JNPR), and CIENA Corporation (NASDAQ:CIEN) are all on watch.
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