i-mate share price plummets

[Guest Chiz]

" LONDON (Dow Jones)--U.K. mobile phone software developer i-mate PLC (IMTE.L) Friday issued a profit warning blaming problems in its supply chain, which sent shares down more than 50%.

The company, which customizes smartphones and pocket PCs for business customers, said as a result of supply problems it expects to report an operating loss in the second-half of its financial year ending March 31, 2007.

The company, which tailors Microsoft (MSFT.NQ) Windows-compatible mobile devices, said the problems were likely to endure into the first-quarter of the 2007/08 financial year.

I-mate Chief Executive Jim Morrison said that the company faced "significant problems" with a particular supplier, which has failed to deliver stock on time and in the right levels of volumes.

As a result, the company has been unable to fulfill orders, leading to a revenues shortfall. The company now expects full-year revenues of $190 to $200 million, with fourth-quarter revenues expected to be in the range of $30 million to $40 million.

I-mate added that it expected its financial performance to be "very significantly below" market estimates for the current financial year and the year ending March 2008.

"Whilst there has been good demand for our products, we have experienced significant problems with a particular supplier, in that it has failed to deliver stock to the required timings and volumes, meaning that we have been unable to fulfill customer orders in a period when we expected a major ramp up in sales," said Morrison, in a statement.

In December, when i-mate announced its first-half results, Morrison said that the current financial year represented a "transitional-year" for the company as it looked to migrate away from depending on one to multiple smartphone suppliers.

Morrison said in December: "Our challenge remains to manage effectively our growth and opportunities. The Company is focused on hitting key operational milestones. I have never been more confident in i-mates future than I am Monday."

At 1311 GMT, shares traded down 87.13 pence, or 52.97%, at 80 pence. "

Edited January 26, 2007 by Chiz

[Guest]

hmmm, I wonder who that supplier could be :)

[Guest Looby]

It's a shame, i-mate don't deserve this they have put a great deal of effort into the PPC and smartphone market. <_

[Guest Pondrew]

I've no idea if they're referring to Techfaith Wireless or HTC.

Personally I'm not so sold on i-mate as their criticism of HTC seems unjustified to me. Don't the allegations of poor build quality coinciding with HTC setting up their own shop seem a little too convenient?

[Guest]

I've no idea if they're referring to Techfaith Wireless or HTC.

Personally I'm not so sold on i-mate as their criticism of HTC seems unjustified to me. Don't the allegations of poor build quality coinciding with HTC setting up their own shop seem a little too convenient?

"the company as it looked to migrate away from depending on one to multiple smartphone suppliers."

I have no doubt they're referring to HTC with this one. Hopefully switching to multiple suppliers will be good for us the end user, in bringing a varity of SPs and PPCs to the market!

I don’t wish ill fate on imate but they really need to improve all aspects of the Co. Cust service, and the dreaded clubimate are awful IMHO.

watch this space I guess .......