ATLANTA-Telemetry company Numerex Corp.’s stock dove 30 percent after the company said its losses for its fourth quarter will be more than the previous quarter and that its full-year growth will be lower than expected.
Numerex said its wireless data revenues for the full year will likely be about 34 percent more than revenues in 2001, below the company’s growth target of between 40 and 60 percent. The company’s stock dropped to about $2 per share.
Numerex said the decline is due to its decision to discontinue sales of certain wireless hardware components, re-positioning its distribution strategy and sluggish sales in its digital multimedia business.
“We believe that narrowing our focus in wireless mobile to specific vertical markets, such as wireless vehicle recovery and location will allow us to capture a strong leadership position in the wireless mobile telemetry markets, complementing our leading market position in wireless alarm security,” said Stratton Nicolaides, the company’s chairman and chief executive officer. “We continue to believe that the company’s business fundamentals and market drivers remain intact, and we are confident that a realigned focus along with the Q4 restructuring and cost reduction initiatives undertaken, will better position us to grow the business in an uncertain economic environment.”
Numerex will report its fourth quarter earnings Feb. 25.
