Wavecom stumbles as Q3 revenues decline
Shares of Wavecom S.A. (Nasdaq: WVCM) are falling following news before the opening that revenues decreased during the third quarter.
Wavecome, a French wireless communications company, reported that revenue for the three months ended Sept. 30 fell 6.26% to $74.8 million, from $79.8 million a year earlier.
The company blamed the decline on slower summer demand and the weakness of the U.S. dollar, which discouraged European exporters from placing advance orders. Wavecom’s wireless technology is most often used in cell phones and vehicle location systems.
However, third-quarter net income shot up a breathtaking 275% to $4.8 million, or $0.29 per share, compared with a profit of $1.75 million, or $0.12 per share, during the same period in 2006.
At 3:17 p.m. ET, Wavecom S.A. (WVCM) shares had lost $4.56, or 17%, to $23.01. The 52-week low is $13.35, established on Oct. 30, 2006. The 52-week high of $39.19 was set on July 19.
