Losses Expected to Continue at STM

STM Wireless Inc., an Irvine provider of communications products, said its fourth-quarter losses more than doubled, to $9.8 million, or $1.39 a share, from a $4.1-million deficit, or 64 cents a share, for the corresponding 1997 period.

The company also said it expects to incur a significant loss and decline in revenue for the 1999 first quarter.

The 1998 results included approximately $6.3 million of non-cash charges associated with taxes and inventory reserves and approximately $1.9 million of reserves for foreign taxes and accounts receivable.

The company said its fourth-quarter results put it in violation of a credit agreement that expired last week, and that it is in discussions with the bank to obtain a renewal. Revenue for the quarter rose 63%, to $11.6 million.

For the year, STM lost $9.4 million, or $1.36 a share, compared with a loss of $2.1 million, or 32 cents a share, for 1997. Revenue declined 19%, to $42 million. STM shares fell 13 cents, to $2.63, in Nasdaq trading Monday.