Palm Beach, FL 1/3/12 (StreetBeat) -- Shares of Telestone Technologies Corp (Nasdaq: TSTC) slumped as much as 23 percent, days after the Chinese local access network technology provider cut its 2011 forecast citing delays in 3G investments by Chinese telecom carriers.The company's shares were down 79 cents at $3.37 in morning trade on Nasdaq.
Telestone now expects revenue of $105.3 million-$111.9 million for the year ending December 31 2011, about 15-20 percent lower than 2010. It had earlier forecast a 30 percent increase.
The company cut its net income forecast to about $16.8 million-$22.4 million, compared with its prior view of about $27.5 million.
"This new guidance is also attributable to uncertainties surrounding auditing issues among the Big-3 carriers, which have complicated the process of doing business and extended payment terms with suppliers," it said in a statement.
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