Thursday resumed offering earnings guidance and is paying for it in the premarket Friday.
Shares were down 63 cents, or 3.9%, to $15.40, after the company's first- quarter and full-year 2004 guidance fell short of analysts' expectations.
The company expects to earn 7 cents to 8 cents a share in the first quarter and 39 cents to 43 cents a share for all of 2004. According to Thomson First Call, the consensus estimates for those periods are 9 cents a share and 44 cents a share, respectively.
The company had abandoned the practice of providing profit forecasts in 2002, "as a result of the downturn in the telecommunications industry" but resumed it with the release of fourth-quarter and full-year 2003 results because of a "significantly improved market."
After the markets closed Thursday, the San Diego-based wireless services company reported a fourth-quarter profit of $8.1 million, or 11 cents a share, versus $3.1 million, or 5 cents a share, a year ago. The consensus forecast was 11 cents a share. Revenue increased 63% to $82.9 million, while operating income rose 216% to $7.9 million.
The company also said that effective April 1, Eric M. DeMarco replaces Masood Tayebi as CEO. Tayebi, who is currently both CEO and chairman, will become executive chairman.
In a statement Tayebi said the move will allow him to "devote my time to working directly with the major carriers on new global business opportunities while Eric focuses on executing our strategy and on the day to day operations of the business,"
DeMarco currently serves as president and COO, but the company's news release did not indicate whether he would continue in those posts once be became CEO.