Wireless communications solutions provider
warned that it would see a second-quarter loss on lower revenue and trim its workforce due to
exposure and slow subscriber growth.
The company now expects to lose 8 cents to 9 cents a share, including restructuring charges of $3.6 million to $4.2 million, in the quarter on revenue of $33 million to $34 million. Excluding the charges, Lightbridge expects to see break-even results to a profit of a penny a share. Analysts polled by Thomson Financial/First Call had been expecting a profit of 9 cents on revenue of $37.08 million.
Lightbridge said it provided about $2 million in services to WorldCom in the quarter, but is excluding revenue associated with those services from its quarterly results.
Additionally, the company said that it has seen slow subscriber growth, and as a result, it plans to eliminate 65 positions and consolidate two of its call center operations. Lightbridge expects to generate $7 million to $7.5 million in savings in 2003 through these actions.
In a press release, the company said, "The elimination of certain staff positions, a step we have taken with caution and reluctance, reflects our straightforward commitment to manage the company at responsible levels as we weather continued soft demand in both our transactions and software business."
Shares of Lightbridge closed at $9.25 Thursday before the warning.