The company posted a net loss of $30.5 million, or $0.12 cents a share, which compares to net income of $28.8 million, or $0.12 cents a share, in the year-ago period. When you subtract certain one-time charges, Symbol actually earned $0.02 cents a share. Unfortunately, revenues fell from $432.8 million to $427.8 million.
The company expects more weakness to come, with projected third-quarter revenue between $425 million and $430 million. That's down from the previous range of $460 million to $470 million.
Despite the results, Symbol does have solid technologies and an extensive customer base. The company develops RFID and other mobile solutions to help other companies manage inventory.
They've chosen an industry that seems poised for growth, especially since Wal-Mart
Meanwhile, shareholders are losing patience with Symbol. The company's stock price plunged 15.38% to $9.85 on the earnings news. The departure of yet another CEO probably hasn't helped to restore confidence.
However, now that much of the bad news is out, brave investors who believe in the company's strengths might consider buying Symbol's stock. Given the P/E and earnings slowdown, this is certainly not for the faint of heart. I believe any future increase in the stock will likely stem from some "special situation," rather than internal business growth. Of course, special situations aren't something you can rely on.
Given the company's technology assets and customer base, Symbol would be an attractive target for a strategic buyer such as IBM
Further RFID Foolishness:
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Fool contributor Tom Taulli does not own shares mentioned in this article.