News of Expected Loss Sends STM Wireless Stock Plunging 30%

Shares of STM Wireless Inc. plunged nearly 30% Wednesday in heavy trading after the company said it expects to post a fourth-quarter loss, wiping out earnings gains for 1995.

STM didn’t elaborate on the size of the projected loss.

The stock fell $4.50 per share to $10.75 as 301,900 shares changed hands on the Nasdaq market. The volume was nearly nine times higher than the daily average over the past three months.

Michael Lindsay, chief operating officer, attributed the shortfall mainly to a delay in closing new contracts, and the “inability to complete shipments of equipment for existing contracts due to a nationwide shortage of certain critical components.” The company didn’t specify what components.

Irvine-based STM, which makes wireless-communications products, said it expects fourth-quarter revenue of about $10 million and full-year revenue of around $37 million.