Shares of Identive Group Inc. sank Tuesday after the Santa Ana-based company provided a revenue outlook in the current quarter below Wall Street expectations.
Investors sent Identive shares down 9.72% in midday trading to a market value of about $50 million after Identive said it projects sales of $24 million to $27 million in the September quarter.
Analysts on average forecast sales of $33 million.
The company projects a loss of $1.7 million to $1.9 million in the current quarter, in line with consensus estimates.
The guidance was included in Identive’s second quarter financial results, reported before the market opened on Tuesday.
The company, which makes scanners, readers, cards and other security devices for buildings and computers, recorded mixed results for the quarter.
Revenue topped $23.9 million, down 6.8% from a year earlier and in line with Wall Street estimates.
It posted a loss of nearly $2.4 million, better than analysts’ forecast of a loss of $4.7 million in the recently ended quarter.
An ongoing recovery in identification products and management systems sales in the U.S. government sector helped offset a slowdown of identification programs in Europe and continued customer project delays in transponder sales, according to Identive Chief Executive Ayman Ashour.
The company also took a $45.4 million impairment charge in the June quarter. The non-cash charges related to the mark down of some assets and will have no impact on day-to-day operations or liquidity and will not result in any future cash expenditures, the company said.
Identive is looking to cut $4 million to $5 million in costs as part of a restructuring plan implemented in June.
The company has seen its market value shrink 63% in the last three quarters.