Ortel Shares Fall on Earnings, Sales News

Ortel Corp. shares fell 9.8% after the company said fiscal first-quarter profit and U.S. sales fell as cable TV companies delayed upgrading their networks. Ortel shares fell $2.38 to close at $21.75 on Nasdaq. In the quarter ended July 31, profit for the maker of telecommunications equipment fell to $1.5 million, or 12 cents a share, matching analysts’ estimates. A year earlier, Ortel had a profit of $1.8 million, or 14 cents. Revenue rose 14% to $19.7 million, from $17.3 million a year earlier, though domestic sales fell to $8.8 million from $11.8 million a year ago. The Alhambra-based company said the decline was “primarily from the continuing industrywide slowdown in spending for cable network upgrades.” Company officials weren’t available for comment.