Skullcandy forecasts 1st-quarter loss, shares slip

March 7 Thu Mar 7, 2013 5:41pm EST

March 7 (Reuters) - Headphone maker Skullcandy Inc reported higher-than-expected fourth-quarter revenue but said it expects to post a loss in the current quarter due to higher expenses related to international expansion and the loss of a major customer.

The company said it expects to post a loss of 25 cents to 30 cents per share in the first quarter. It also said it expects revenue to fall about 30 percent from a year earlier, implying revenue of about $37 million in the quarter.

Analysts on average expect a profit of 5 cents per share and revenue of $59.8 million, according to Thomson Reuters I/B/E/S.

Skullcandy in February appointed its founder and director Rick Alden as interim chief executive following the departure of its CEO Jeremy Andrus in February.

Net profit fell to $11.5 million, or 41 cents per share, in the fourth quarter, from $12.3 million, or 44 cents per share, a year earlier.

Excluding items, the company earned 47 cents per share.

Revenue rose 21 percent to $101 million.

Analysts expected a profit of 48 cents per share and revenue of $98.6 million.

Shares of the Park City, Utah-based company slipped about 7 percent to $6.26 after the bell. Skullcandy has seen its stock price drop almost 70 percent since its IPO in 2011.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.