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Telxon shares dive 41%
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December 11, 1998: 12:03 p.m. ET
Telecom equipment maker restates 2Q results, turning profit into loss
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NEW YORK (CNNfn) - Shares of Telxon Corp. plunged 41 percent Friday after the telecommunications equipment maker revised downward its previously reported financial results, telling unhappy investors it expects a second-quarter profit to become a loss when the numbers are officially released.
The Akron, Ohio-based company, which designs wireless and mobile information systems, said it restated its earnings to reflect a change in the timing of how it recognizes revenue.
For the fiscal second quarter, ended Sept. 30, the company expects to report revenue of about $110 million, compared with previously announced sales of $124 million.
As a result, the company expects to report a loss for the period, before non-recurring items, of about 5 cents a diluted share, compared with previously announced earnings before one-time items of 22 cents a diluted share.
Shares of Telxon (TLXN) dropped 16-3/16 to 11-1/16 on the Nasdaq in response to the news.
Telxon also told Wall Street its revenue and earnings for fiscal 1999 will be weighed down by unexpected delays in the availability of some of its pen-based product line models and lower-than-expected demand from U.S. customers.
As a result, the company said it expects to post a third-quarter operating loss.
Revenue for fiscal 1999 likely will be flat with year-ago levels of $466 million, it said.
Telxon said it will release its final restated results "shortly." 
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Telxon
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