OWINGS MILLS, Md.-Just a month after it reassured Wall Street of its revenue expectations, Aether Systems Inc. today announced it now expects “flat to modest” growth for the remainder of the year and will cut expenses by as much as $78 million.
Aether didn’t expand on its revenue warning, but said it would provide further details in its second quarter earnings report. However, the company said it still expects to reach earnings before interest, taxes, depreciation and amortization by the third quarter of next year.
Aether said the cost-cutting measures would come from the elimination of redundant or nonvalue-added jobs, the reduction of marketing and capital expenses and the restructuring of its European venture.
“Aether maintains that while the interest level from corporate America for wireless and mobile solutions is gaining momentum-as evidenced by an increased number of requests for information and proposals from Aether-the macroeconomic slowdown has made it difficult for potential customers to make technology investment decisions in the short term,” the company said in a statement.
Aether’s stock was down almost 8 percent in trading today to $7.63 per share.
In other Aether news, the company released its StopTracker, which Aether said is a wireless product for data collection, reporting and analysis related to contacts between police and citizens.
