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About 30percentt of Toll's contracts from the current quarter have canceled.
Revenue could stay flat or decline as much as 5percentt from the current quarter, he said.
After the close of regular stock trading on Tuesday, the company said it now expected core sales in the first quarter of 2003 to fall 10percentt from the current quarter, wider than analysts were expecting.
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Worse, as signs of weakness accumulate, forecasters have trimmed estimates for the current quarter from around 3.5% they were projecting a month ago to 2.7% or less now.Last December an agreement between Barack Obama and the Republicans to extend George Bush's tax cuts and enact new ones led to forecasts of 3% to 4% growth this year.
Jeffrey O. Henley, the chief financial officer, said license revenue for the current quarter could range from a decline of 3percenttoto an increase of up to 7percentt.
Cutbacks in purchasing by both telephone companies and corporate customers for communications systems caused Nortel to cut its revenue forecast for the current quarter to $2.3 billion from an earlier $2.66 billion.
A sales warning and job cuts from Hewlett-Packard limited the Dow's gain, after the company, a leading printer and computer maker, forecast yesterday that revenue for the current quarter would fall 14percentto16percentcent from the period a year earlier.
Analysts' consensus forecast calls for quarterly revenue growth for the current quarter to jump 32% from the fourth quarter of 2008.
The company declined to provide guidance on earnings for the current quarter or shy away from investing in services that remain a tiny fraction of its business.
Revenue for the current quarter is projected to grow sharply from the previous quarter, prodding the firm ever closer to profitability.
The company has said its earnings for the current quarter will be negatively affected by fallout from the investigations.
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