NovAtel (NGPS) sank 7% late Monday after the global positioning technology outfit missed third-quarter revenue targets.
The Calgary, Alberta, company made $5 million, or 56 cents a share, for the quarter ended Sept. 30, compared with the year-ago $2.6 million, or 30 cents a share. Revenue rose to $16.9 million from $11.8 million a year earlier.
Analysts surveyed by Thomson Financial were looking for a 56-cent profit on sales of $18.8 million.
"A number of factors, particularly the growth in revenue and the continued strong gross margins of 64%, contributed to net income increasing to C$5.6 million in the third quarter of 2006 compared to C$3.2 million in the third quarter of last year," the company said. "In addition, we generated $7.1 million in positive operating cash flow, increasing our cash/short term investments balance to C$46.3 million."
Shares fell $2.96 to $42.