Telestone shares fall after 2nd-quarter results show net income falling
By APThursday, August 12, 2010
Telestone shares fall on 2Q earnings
NEW YORK — Shares were pummeled in Chinese wireless network gear-maker Telestone Technologies Corp., which on Thursday reported lower second-quarter profits as rising costs for training its sales staff offset higher revenue.
Net income in the three months to June 30 fell 13 percent to $1.7 million, or 16 cents per share, from $2 million, or 19 cents per share, a year ago.
Revenue rose 37 percent to $16.6 million from $12.1 million.
Shares plunged $2.51, or 18.5 percent, to $11.08 in after-hours trading Thursday, after closing up 7 cents at $13.59.
The company said half of its revenues would fall in the fourth quarter so it kept its full-year guidance of net income of $22.9 million on revenue of $129.4 million.
The company said its selling, general and administrative expenses grew to $5.1 million from $2.3 million a year ago, caused mostly by retooling its sales staff to better sell its higher-profit-margin WFDS systems for its major customers.
