AuthenTec downgraded
I wonder if there are implications for Wave?
Shares of AuthenTec Inc. fell in premarket
trades Monday after Raymond James downgraded the stock two notches to market
perform from strong buy, citing the loss of a key PC customer.
The stock was down 35% at $6.39 on volume of 29,025 shares.
Analyst J. Steven Smigie said he is lowering his rating on the stock after
Authentec cut its third-quarter and 2008 revenue guidance and announced the loss
of a 2009 design-in opportunity at a key PC customer, which he believes to be
Hewlett-Packard.
"AuthenTec was notified by a key PC customer (we think Hewlett-Packard) that
it does not plan to use AuthenTec sensors in its next design cycle in late 2009.
As a result, AuthenTec believes an impact to sales will occur in the second half
of 2009," Smigie said in a note to clients. Smigie said the key customer is
expected to represent about 30% to 35% of revenue in the third quarter.
AuthenTec trimmed its third-quarter adjusted profit guidance to a range of 3
cents to 4 cents a share from a previous estimate of 4 cents to 5 cents a share.
The company forecasts revenue of $18.2 million to $18.5 million, down from a
previous guidance of $19 million to $20 million.
Analysts polled by Thomson Reuters, on average, expect third-quarter
earnings of 5 cents a share on revenue of $19.8 million.
