FREMONT, Calif.-Mobile resource management company @Road Inc. reported revenues and earnings largely in-line with estimates, but its forecasts for the first quarter came in below expectations. Investors sent the company’s stock down more than 15 percent after the news to around $5.17 per share.
“During the quarter, we continued to focus on delivering valuable MRM solutions to our customers,” said Krish Panu, the company’s president and chief executive officer. “We are looking forward to closing our previously announced acquisition of Vidus Limited. When available, we believe that our integrated solution can deliver even more value to our customers going forward.”
@Road reported revenues for the fourth quarter of $19.9 million, up from the $17.2 million it scored in the same quarter a year ago. The company’s net income was $2.1 million, the same as a year ago.
For the first quarter, the company said it expects revenues of between $19.2 million and $19.4 million, below Thomson First Call estimates of $19.9 million. The company said its earnings per share in the first quarter would be 0.01 or 0.02 cents per share, just below estimates of 0.03 cents per share.
@Road “reported a respectable quarter beating our top and bottom line estimates as a result of a one-time gain in unrecognized revenue,” wrote ThinkEquity in a research note to investors. The firm makes a market in @Road securities. “Excluding this, the quarter would have been in line with our expectations. Although @Road remains in a strong position, the MRM market remains highly competitive. We remain concerned that about 35 percent of their subscriber base still need to transition out of CDPD and has not made a commitment to stick with @Road. Despite the high-profile SBC win (addressable market of 35,000), we believe subscriber growth and margins will likely remain under pressure for the remainder of the year.”
