This was the news:
Wednesday July 14, 7:09 pm Eastern Time
Glenayre sees second-quarter shortfall
CHARLOTTE, N.C., July 14 (Reuters) - Glenayre Technologies Inc., a maker of paging and cellular products, said Wednesday its second-quarter results will be below prior estimates.
Glenayre said it expects to lose $10-15 million in the second quarter before special charges, in contrast to the break-even results previously expected by analysts, according to First Call Corp.
In addition, revenue will be about $62 million, also below estimates, due to a slowing trend in paging, Glenayre said.
The company said it will take a charge in the second quarter related to the bankruptcy of Conxus Communications. Glenayre holds $49 million in receivables from Conxus, and will take additional reserves for other bad debt, the company said.
The company will also record additional charges associated with the restructuring of its Vancouver operations. In total, the charges are estimated to shave an additional $70-80 million from Glenayre's bottom line.
Glenayre also said it would announce two strategic restructurings during the third quarter. The first will relate to a restructuring of its overall global activities, and will be announced within 90 days.
The company expects these efforts to incur third quarter charges between $10 million and $15 million.
Finally, in the third quarter, Glenayre will record a $50 million to $60 million write-down of goodwill due to lower-than-expected results at its Wireless Access pager business. |
