Stock Market Chumps 10-06-06

Mobility Electronics Inc. (MOBE)

Last Trade: 3.15
Trade Time: 10:32AM ET
Change: - 2.23
down 41.45%


Computer peripherals company Mobility Electronics Inc. said Friday it expects its third-quarter revenue to fall short of Wall Street's estimates, and it warned future programs with two customers are in jeopardy.

The company, which makes docking stations and other connectivity and power products for portable computers and mobile devices, said it expects sales to fall between $24.1 million and $24.3 million.

Analysts, on average, are looking for sales of $26.9 million, according to a poll by Thomson Financial.

Mobility said it saw significantly lower sales to the pharmaceutical field trials industry, and a shortfall of about $1.2 million in sales of universal power adapters for portable computers to Targus, a computer accessories maker.

"While we are disappointed with the shortfall in the connectivity and high-power areas, we had another solid quarter with our low-power products," said Charles Mollo, chief executive, in a statement.
The company also said it "does not expect to generate material, if any, revenue going forward through its relationship with Energizer Holdings Inc."

Mobility added its current deal to supply combination AC/DC power adapters for portable computers to computer maker Dell Inc. will likely end soon after the end of the year. The company said it is looking into other options to maintain a relationship with Dell, either through direct programs or alternative distribution channels.