Morgan Keegan cut its estimates on CompuDyne (CDCY ).
Analyst Brian Ruttenbur says the provider of services to the public security market has hit a couple of bumps over the last two to three quarters due to revenue and operational issues. The news confirms these troubles are continuing. Ruttenbur says he doesn't see the problems solved until after the first quarter. On the revenue side, the specific problem is in the company's attack protection segment. Ruttenbur says the company has a great deal of backlog (over $200 million), but can't seem to move it out the door.
Operational issues center around the company's mismanagement of its Corrections unit, where CompuDyne has underbid on some projects. Ruttenbur cut his 42 cents 2002 earnings per share estimate to 24 cents, and cut the 85 cents 2003 estimate to 50 cents. He rates the shares as neutral.