Cellnet Shares Plunge On News Of Mobile Downturn
Sydney Morning Herald
Saturday November 16, 2002
Cellnet Telecommunications said a downturn in mobile phone handset sales had led to a 20 per cent drop in revenue for the first four months of the 2003 financial year and the market responded by sending its share price plunging 23 per cent yesterday.
With Cellnet chairman Brian Davis unable to attend yesterday's annual meeting due to unforeseen family commitments, it was left to the company's non-executive director, Jim Goldburg, to break the news to shareholders in Brisbane.
``With uncertainty in the economy leading into Christmas, the last 2 1/2 months of trading for the 2003 financial year have proved challenging and are below our expectations," Mr Goldburg said.
Company spokesman Scott McLennan said revenue had dropped about $25 million in the four months to October to around $100 million, compared to revenues of $188.2 million for the first half of 2001-02.
Cellnet, which is Australia's biggest mobile phone accessories distributor, expects a rebound in handset sales for the 2003 calendar year.
Shareholders yesterday approved a change in name for the company to Cellnet Group to recognise its growing information technology division, which makes up about a third of the business.
The shares fell 31c to $1.04.
© 2002 Sydney Morning Herald
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