Vehicles tracking system maker LoJack Corp. (LOJN) Wednesday reported a drop in second quarter profit on lower revenue, hurt by deterioration in the broader domestic auto market. The company also lowered full-year 2008 earnings forecast.
Second quarter net income for Westwood, Massachusetts-based LoJack was $1.0 million or $0.06 per share, down from $6.7 million or $0.35 per share in the year-ago quarter, and wide below Street expectation of $0.17 per share.
Revenues declined to $51.4 million from $58.2 million in the prior-year quarter, and were below Street estimates of $52.45 million.
Domestic revenue declined to $32.6 million from $40.5 million in the year-earlier quarter, while international revenue increased to $13.3 million from $12.4 million in the prior-year quarter.
Total costs and expenses increased to $25.1 million from $23.8 million in the same quarter a year ago. Operating income declined to $2.2 million from $9.9 million in the year-earlier quarter.
Gross margin as a percentage of revenue was 53%, compared to 58% in 2007.
Richard Riley, chief executive officer, said, "International volume and revenue grew 7% during the quarter, while our domestic business was again impacted by the further deterioration in the broader domestic auto market in the second quarter."
For the six-month period, net income was $2.0 million or $0.11 per share, down from $12.8 million or $0.67 per share from the same period a year ago. Revenue declined to $97.6 million from $112.3 million in the prior-year period.
For the full year, the company now expects profit in the range of $11 million to $12 million, or $0.62 to $0.67 per share, down from $13 million to $15 million, or $0.75 to $0.85, projected earlier. The Street currently expects earnings of $0.69 per share for the full year.
The company also lowered full year revenue forecast to a range of $203 to $208 million from prior guidance range of $213 to $218 million. The Street currently expects revenue of $210.30 million for the full year.
LOJN is currently trading at $5.91, down $0.07 or 1.17%, on a volume of 88,746 shares.
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