CE Unterberg Downgrades Viisage
CE Unterberg downgrades Viisage Technology (VISG ) to market perform from buy.
Analyst Scott Greiper says fourth-quarter 2004 is in line with preannouncement.
He notes the 18-cent net loss, vs. his forecast (before preannouncement) of a 4-cent loss due to contract delays, Sarbanes-Oxley compliance expenses, foreign exchange, and $2 million in non-cash charges for termination of a Georgia driver's license contract.
The company says 2005 guidance is below consensus and his estimates, which will lead to reduced 2005 forecasts. He cuts his $82.2 million 2005 revenue estimate to $74 million and 9 cents GAAP earnings per share to a 4-cent loss.
Greiper notes this is the second disappointment for Viisage in the last three weeks, which has clearly broken stock. He is positive on the company's long-term.