Hemisphere GPS, a manufacturer of global positioning systems products, posted a wider-than-expected quarterly loss on weak demand in its key agriculture sector, sending its shares down a new 52-week low.
Recessionary conditions have impacted global markets during the first three quarters of 2009, CEO Steven Koles said in a statement.
With continued recessionary caution and late harvest conditions in agriculture the company said it will not be able to meet its previous estimates for 2009.
We can no longer forecast delivering $60 million in revenues in 2009, (while we do) expect growth in the fourth quarter, we do not expect to make up the revenue shortfall in the third quarter, CEO Koles said on a conference call with analysts.
With these conditions preventing us from achieving our previous estimates, this will also lead us to an overall loss for 2009, Koles added.
I think the revenue guidance will come down at least 10 percent, Research Capital Corp analyst Nick Agostino said.
In addition to the economic malaise, which dampened spending within Hemisphere GPS' target markets, a relatively late harvest also reduced customer purchasing activity in agriculture, the company said.
Non-traditional farming tools like global-positioning systems and auto-steering, which allow farmers to precisely manage their land, have fallen victim to North American farmers' thriftiness.
Hemisphere, which makes GPS products for agriculture, marine and other markets, posted a net loss of $3.8 million, or 7 cents per share for the quarter ended Sept 30 compared with a loss of $0.2 million, or breakeven per share, last year.
Revenue fell 31 percent to $9.1 million.
Analysts expected a loss of 2 cents per share on revenue of $10.8 million, according to Thomson Reuters I/B/E/S.
Results were mediocre, Haywood Securities analyst Dev Bhangui said, adding the company is not able to diversify its revenue beyond the northern hemisphere.
Shares of the Calgary, Alberta-based company touched a low of 83 Canadian cents, before recouping some losses to trade down 11 percent at 85 Canadian cents during afternoon trade Friday on the Toronto Stock Exchange.
(Additional reporting by Isheeta Sanghi; Editing by Jarshad Kakkrakandy)