Blames uncertainty among top phone makers
Millions wiped off cap as share price drops by over a third
UK phone testing specialist Anite is likely to come under investor pressure when trading resumes today (16th October 2013) after an earnings update indicated disappointing turnover for the second quarter of 2013, adding to Q1 woes.
In its statement, Anite revealed: “Following the reported quiet first quarter for trading in handset testing, the anticipated pick-up in activity levels in the second quarter has not been as marked as had been expected.
“There has been a continued trend for pipeline opportunities to take longer to conclude due in part to the uncertainty created by reorganisations and consolidations affecting a number of tier one handset and chipset manufacturers. This is resulting in potential contracts slipping to later in the financial year as participants, both acquirers and targets, pause to evaluate their requirements.”
The board said it now expects likely revenues in phone testing for the first half will be around 25 per cent down on the comparative period last year when it reported £40.5 million.
Anite – formerly known as Cray Electronics – predicts that while market conditions that prevailed in the first half will improve in the second half, it will still not be “to the extent that they can compensate for the first half shortfall.”
Anite will issue its half year results for the six months to 31 October 2013 in early December.
Two months ago Anite’s shares plunged 7 per cent when, again, it disappointed investors by admitting Q1 activity had been “relatively quiet.”
* In early trading this morning (16th October 2013) Anite’s share price collapsed by over a third, wiping millions of its cap. It fell from its open of 113 pence to just 74 pence.
Ironically, just before the crash, Anite had its “buy” rating restated by equities researchers at US-based Jefferies Group, suggesting a target of 160 pence. Espirito Santo Investment Bank Research similarly reiterated a buy rating, as did Canaccord Genuity at the end of last month.