Irvine’s Powerwave Stock Hurt by South Korea Crisis
<i> Dow Jones</i>
Powerwave Technologies Inc.’s stock slumped Thursday amid fears that economic troubles in South Korea could damage earnings of companies with significant business in the country.
The Irvine company, which makes wireless communications equipment, gets a substantial chunk of revenue from Asian customers. Economic conditions in Asia have led to reduced demand as the strong dollar has made it difficult for U.S. firms to compete with Asian companies, analysts said.
Powerwave shares fell 16.5% Thursday, closing at $15.88, down $3.13, in heavy trading. About 3.7 million shares were traded, compared with daily average volume of 810,000 shares over the last three months.
