Don't recall seeing anyone post the OTWO warning earlier, so here it is -- oh, and the price is down about 45% so far this morning. Stock also downgraded by JP Morgan today, from "Buy" to "LT Buy" (yeah, thanks). Of course, three weeks ago Wachovia Securities UPgraded it from "Buy" to "Strong Buy." Don'tcha just love these guys?...
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Monday March 12, 6:53 pm Eastern Time
O2wireless Updates Guidance For First Quarter 2001
ATLANTA, March 12 /PRNewswire/ -- o2wireless Solutions, Inc. (Nasdaq: OTWO - news), a leading provider of outsourced network services to all sectors of the global wireless telecommunications industry, announced today that it is lowering its revenues and earnings per share expectations for the first quarter 2001.
o2wireless projects first quarter revenues in the range of $28 million to $30 million, an increase of approximately 10% over the first quarter of 2000, compared with prior guidance of $40 million to $42 million. The company projects a pro-forma loss per share in the range of $.05 cents to $.07 cents, compared with pro-forma profit in Q1 2000 of $.04 cents per share and prior Q1 2001 guidance of a pro-forma profit of $.05 to $.07 cents per share. Pro-forma profit/ loss for the quarter excludes amortization of deferred stock compensation, goodwill amortization and actual income tax expense or benefit and assumes an effective tax rate of 40%.
Stephen F. Johnston, Sr., Chairman and Chief Executive Officer stated, ``In line with many other telecommunication providers, we expect overall market growth to slow in 2001 as a result of longer spending lead times due to this challenging economic environment. Despite the slowdown predicted for calendar year 2001, we are only revising our first quarter 2001 estimates at this time.''
Mr. Johnston continued, ``We also continue to aggressively review our cost structure to ensure that, as we mature as a business, we achieve our growth effectively and efficiently. Consequently, we are actively adjusting our cost structure in response to the current economic environment and will take additional cost reduction steps in the future as required.''
o2wireless Solutions, Inc. provides a full range of network services to all sectors of the global wireless telecommunications industry. The company's services range from business planning and design through deployment and maintenance services for telecommunications networks. o2wireless Solutions has contributed to the design and implementation of more than 50,000 communications facilities in all 50 U.S. states and in 35 countries. o2wireless Solutions provides services to a range of participants in the telecommunications industry, including wireless and broadband carriers, equipment vendors and wireless tower companies. Through program management services, the company allows customers to manage the process of planning, designing, deploying and maintaining their wireless networks.
Certain statements contained in this press release are ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to the financial results and plans for future business development activities, and thus, are prospective. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, general economic conditions, competition in the wireless services industry, the company's ability to manage its growth effectively, the company's ability to implement acquisition strategy, fluctuations in quarterly operating results and other uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings. |
