CompUSA (CPU), one of the leading sellers of personal computers and products in the United States, said it expects third-quarter earnings to be nil vs. an expectation that it would profit 21 cents a share.
The flat results wouldn't include a 5-cent-a-share charge for "the impact of" information technology and Internet business plans, the company said in a short press release.
CompUSA could also post a loss in its fourth quarter, the company said. The First Call consensus was for earnings of 11 cents a share in that quarter.
Same-store sales for the third quarter will probably drop from year-ago levels in the "high single digit," the company said. Gross margins will probably be 13 percent to 13.2 percent, CompUSA reported.
The news could have bad implications for computer-makers. Analysts have recently questioned whether a slowdown is hitting the industry.
Shares fell 2 to 6 1/8 in trading Friday morning. The stock fell 1 7/16 to 8 1/8 on Thursday, ahead of the news.
Written By Tiare Rath, CBS MarketWatch