BOISE, Idaho-Wireless enterprise company Extended Systems Inc. reversed past losses with a slim profit in its second quarter, but the news failed to please Wall Street as the company’s stock dropped slightly following its report to about $6 per share.
Extend Systems reported a net income of $459,000 for the second quarter compared with a net loss of $1.3 million in the second quarter of last year and a net loss of $1.4 million in the previous quarter. The company said sales of excess land helped boost its net income. Extended Systems scored revenues of $8.5 million for the second quarter, up from the $6.9 million it recorded in the same quarter a year ago.
“We are very pleased that the business is growing and operating profitably on a pro-forma basis,” said Charles Jepson, the company’s president and chief executive officer. “Our second-quarter growth and pro-forma profitability validated our strategic focus on mobile information corporate deployment, our aggressive cost-reduction actions and our hard work to re-energize and refocus our people on exploiting market opportunities. With increasing signs of economic stabilization, analyst predictions about IT spending growth and predictions that enterprise mobile pilots will move into deployment in 2004, we are very optimistic about the future.”
Extended Systems said it expects to post revenues of between $7.9 million and $9 million in its coming quarter. The company said it could post a profit of as much as $300,000 or a net loss of as much as $1.1 million in the coming quarter.
Extended Systems recently scored a major wireless e-mail deal with European carrier Orange.
