CIBC World Downgrades Catapult

The telecom software company sees lower than expected earnings due to a continued slump in the North American telecom market

CIBC World downgraded Catapult Communications (CATT ) to hold from strong buy.

Analyst Hampton Adams says although a capital expenditure freeze at Japan's NEC was expected, the company thinks that early indications that improvements in North America would offset weakness in NEC were "premature."

After the company lowered its estimates, Adams also cut the $0.98 fiscal 2002 (Sept.) earnings per share estimate to $0.71, and trimmed the $46.5 million revenue to $38.5 million. He cut the $1.13 fiscal 2003 EPS estimate to $0.42 and trimmed the $55 million revenue estimate to $35 million. Adams says visibility going forward is unclear.

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