By Maisie Ramsay
M2M company RF Monolithics reported a widening third-quarter loss as the company was hit with substantial write-downs.
The company lost $1.98 million, or 20 cents per share, in the third quarter ended May 31 compared to a loss of $1.42 million, or 15 cents per share, for the same period last year. Of the loss, $1.5 million was related to write-downs of intangible assets while another $0.1 million related to other non-recurring costs.
Company President and CEO David Kird attributed part the loss to the global economic crisis, but said that the business appeared to have stabilized. Sales remained flat from the second quarter at $6.5 million, though that was still a considerable drop from last year’s sales of $12.8 million.
Sales of wireless sensors and M2M technology to the automotive sector are expected to be challenging for the next several quarters and the company also said that the industrial markets continue to be softer than anticipated. However, sales of wireless technology into the medical market remained strong, representing 21 percent of total sales.
The company’s wireless component business recovered by about 30 percent from last quarter, and its wireless solution business continues to represent almost 56 percent of its total sales.