IMGCAP(1)]
Shares in Hypercom Corp. fell sharply Tuesday after the terminal maker reported a 91% bigger loss in the second quarter than a year earlier.
The Scottsdale, Ariz., company said Monday that quarterly revenue had grown 86% from the year earlier, to $125.4 million, largely because of its April purchase of Thales SA's e-Transactions business, for $120 million. It lost $10.9 million in the quarter.
Hypercom said that strong sales in all regions helped boost its organic revenue by 13%. It said there was particular demand for its multilane systems in North America and Northern Europe and for its countertop terminals in Southern Europe and Asia.
The company attributed the loss, in part, to $2.8 million in expenses for its shift to a contract manufacturing business model, and it noted that its results in the comparison quarter had benefitted from a $3.8 million gain on the sale of a building and $2.3 million in reversed stock compensation charges and bonuses.
Hypercom said in July 2007 that it would outsource its manufacturing, and that shift is now complete, though some costs lingered in the quarter related to the shuttering of some facilities, freight costs, and other expenses.
A loss of 20 cents per share far exceeded Wall Street's expectation, of 8 cents.
The news drove down the company's share price. The stock was trading at $4.66 Tuesday afternoon, down 6.8% from Monday's closing price.
