In a picture resembling Nortel Networks Ltd.’s struggles and triumphs, Wireless Facilities Inc. is revising its quarterly results and attracting ratings downgrades just as it rakes in significant contracts and an acquisition.
The company said it intends to restate its financial statements from 2000 to 2004, during which period it estimates an aggregate expense increase of between $10 million and $12 million.
The wireless supplier said it will delay the filing of its 10-Qs until it files its amended statements.
WFI also said it is divesting its unprofitable Scandinavian operations, which resulted in a one-time charge of approximately $2.5 million.
In the company’s third-quarter guidance, it anticipated $100 million to$105 million in revenues and earnings per share of 9 cents. It lowered its full-year EPS for 2004 to 37 cents from 38 cents. Its wireless business grew 4 percent sequentially to $75.1 million from $72.4 million during the first quarter of this year.
Downgrades came from Credit Suisse First Boston, First Albany and Punk, Ziegel & Co. Punk, Ziegel lowered its rating to market perform, FA to neutral and CSFB to neutral.
WFI announced two contracts totaling $15.5 million with unnamed wireless carriers. The first contract involves the deployment of wireless infrastructure sites in Latin America, according to the company. Both involve design, site acquisition and network deployment.
The company also said it has acquired Defense Systems Inc., which launches WFI into the radio frequency identification and logistics automation markets. The transaction is valued at about $6.6 million.
