2 Tech Stocks Dive on Poor Projections

Shares of two Orange County high-tech companies tumbled Tuesday in the wake of disappointing earnings projections.

Kofax Image Products Inc. stock slumped 28% a day after the company said it expects second-quarter earnings to be flat to slightly below analysts’ expectations.

STM Wireless Inc. shares lost nearly 24% in value after the maker of wireless communications products said it expects to post losses of 30 to 34 cents for the fourth quarter and 60 cents to 64 cents for the year.

Irvine-based Kofax, which supplies document imaging software and scanner products, said it expects earnings for the second quarter ending Dec. 31 to range between 12 and 14 cents a share on revenue of $7.8 million to $8.1 million.

Analysts expected the company to post earnings of 14 cents a share on revenue of $8.9 million. The company attributed its revenue shortfall to weakness in its accelerator board business.

The stock fell $2 to $5.13 a share in heavy trading. Earlier it had fallen to $4, its lowest point since the company went public in October. Its initial public offering was priced at $11 a share.

STM Wireless stock fell $2.50 to $8 a share after the Irvine company announced the projected losses, which it attributed in part to its decision to retain control of its Direc-To-Phone International unit, which it had planned to spin off. The acquisition of Telecom International also affected results, STM said.

STM said the Direc-To-Phone telecommunications service unit reached a 15-year joint venture service agreement with another company to provide a nationwide satellite network for fixed telephone and data services throughout Venezuela.

In a press release Tuesday, STM said it expects revenue for the joint venture to be about $100 million during the contract period, of which Direc-To-Phone will get about $50 million.