Wireless Facilities Learns a Hard Lesson
In the second quarter, for example, WFI missed revenue estimates because of contract delays and took a $1 million charge related to unexpected fees. The company has missed its own guidance figures for three quarters running.
WFI cited out-of-control costs on key contracts near the Gulf Coast and in Latin America. Labor and material costs are ballooning in the hurricane-battered southeastern U.S., where WFI has 60% of its enterprise business; and in Latin America, where managers apparently let project costs spiral out of control.
DeMarco said the hurricanes battering the Gulf Coast had driven up the cost of raw materials and subcontracting labor. What's more, the need to rebuild is so much stronger in other areas that the work on these contracts is likely to be delayed. CFO Deanna Lund said the heaviest hurricane-related costs would take one to two percentage points out of fourth-quarter gross margin.
The problems in WFI's Latin America division, which appeared to be
centered on work for Spanish carrier Telefonica
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV