Shares of Lipman Electronic Engineering (LPMA) were among technology's losers Wednesday, falling 23% after the company slashed its 2005 guidance.
The maker of electronic payment systems now expects adjusted earnings of $1.08 to $1.18 a share on sales of $230 million to $240 million. Previously, the company said that it would post adjusted earnings of $1.59 to $1.62 a share on sales of $273 million to $285 million. Analysts polled by Thomson First Call had been expecting earnings of $1.60 a share on sales of $274.5 million.
Lipman blamed the shortfall on weaker-than-expected performance at its Dione subsidiary, which was acquired in October 2004. "We are disappointed with the performance of Dione in the second half of 2005 in which certain large orders that were expected did not materialize," Lipman said.
Lipman also announced that it fired Shaun Gray, Dione's chief executive, effective immediately. Ricky Garrido, Dione's founder and chief technology officer, will serve as interim CEO until a permanent replacement is found. Shares were recently trading down $6.03 to $20.16.Intuit (INTU - Get Report) rose 1% after the software company reaffirmed its fiscal 2006 guidance. The maker of Quicken and TurboTax continues to expect pro forma earnings of $2.19 to $2.29 a share. Including items, the company expects earnings of $1.86 to $1.96 a share. Analysts are expecting pro forma earnings of $2.27 a share. Sales, meanwhile, are still expected to come in at $2.18 billion to $2.24 billion. Analysts project sales of $2.22 billion. Shares were trading up 38 cents to $45.12. Shares of Euronet Worldwide (EEFT - Get Report) fell 2% after the company confirmed its third-quarter guidance for earnings of 24 cents a share, which is a penny more than it earned during the second quarter. The electronic payments provider's guidance is in line with analysts' expectations of 24 cents a share. Separately, the company said it would sell $125 million in unsecured convertible debentures due 2025. Euronet plans to use the proceeds from the offering to fund general corporate purposes, including share repurchases, acquisitions of non-U.S. entities or other strategic investments. Shares were trading down 71 cents to $29.30.