Micronet admits to business slowdown half-year after floating

Just over half a year after floating stock in Tel Aviv, Micronet (TASE: MCRNT), which markets data-communication terminals for vehicle fleets, has released a revenue and earnings warning.

Because of delays in receiving anticipated orders, and rising operating costs, second-quarter revenue and profit will fall short of expectations, the company admits.

Nor does it limit the problem to the second quarter, saying it may continue in the near future.

Shares in Micronet have lost 40% of their value since its initial public offering last year.

The trouble actually began in the first quarter of 2007, for which Micronet reported netting NIS 670,000 on turnover of NIS 10.9 million.

It had netted NIS 1.8 million on turnover of NIS 10.5 million in the same period of 2006.

At the end of last year, Micronet raised NIS 35 million by selling shares and bonds, according to a market value of NIS 90 million. The company, a 20-year veteran in the information-technology sector, is located in Azur.

Its computerized mobile devices, typically installed in taxis, buses and trucks, collect data and can communicate with a hub at the company's headquarters. They also serve as cellular communication devices with the drivers and can serve for fleet management.

The company's website states that more than 100,000 of its systems have been installed in Israel.