Shares of mobile computing products maker Mobility Electronics
The company, which makes peripherals like chargers, presentation devices, port replicators, and monitor stands, expected significant sales to Fellowes, a consumer electronics and office products company. As it turns out, Fellowes ordered a bit less than expected during the quarter, and now Mobility is terminating the relationship. The near-term revenue impact is estimated at $1 million to $1.3 million -- Mobility had previously aimed for total sales of $15 million.
So now, Mobility doesn't expect to earn the slim net income -- between breakeven and $0.01 per share -- it was shooting for. (Earnings that would have pleased investors looking forward to a break in the company's long run of unprofitable quarters and years).
Now, they'll have to wait a little longer. All the same, fourth-quarter sales to other distribution partners, which include IBM
For 2004, Mobility expects revenues to grow at least 50% over 2003, and the company's abilities to expand its revenue base will make or break that number. Mobility has minimal capital requirements and, should it start turning a profit, the potential to generate solid cash flows.
All of which makes Mobility a company worth watching -- all the more so after today's sell off.