LOS ANGELES-LCC International Inc., a wireless and technical data consulting firm, said it will restate financial results for 2004 and the first quarter of 2005 and expects its second-quarter 2005 results to fall short of previous estimates. The company said it miscalculated revenue earned from certain fixed-price contracts with a U.S. customer.
The company’s shares on the Nasdaq fell 35 percent, from $2.52 at the close to $1.65 in after-hours trading.
LCC said the restatement would reduce third-quarter 2004 revenue by about $2 million, or 4 percent; fourth-quarter 2004 revenue by about $4 million, or 10 percent; and full-year 2004 revenue by about $6 million, or 3 percent.
The company said its net after-tax loss for 2004 is expected to increase by about $1 million and the after-tax loss for the first quarter of 2005 will increase by about $200,000.
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LCC said it hopes to complete the restatement process in four to six weeks.
For the second quarter, LCC said it expects a net after-tax loss of about $5 million, or 20 cents a share, on revenue of about $45 million, due mostly to unexpectedly low margins in North America and a previously announced restructure reserve now estimated at $1.1 million.
Analysts expect a second-quarter loss of 2 cents a share on revenue of $48.5 million.
