| Tech Stock News and Analysis |
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| Wednesday, September 20, 2006 |
Shares of American Technology Corp., a former portable radio maker that now develops advanced sound technology, fell on Wednesday after the company slashed its revenue expectations for the present quarter and fired a number of executives.
Shares of San Diego-based American Technology fell 90 cents, or 21 percent, to $3.46 in afternoon trading on the Nasdaq, trading at about five times its average volume. It has traded in a 52-week range of $1.90 to $4.
The activity came after the company said revenue in the quarter should be in the range of $2 million to $2.5 million, down sharply from the $3 million to $4 million it previously expected. The company blamed the shortfall on a customer's decision to postpone some work.
American Technology said it also fired Chief Financial Officer Steve Stringer and said Tom Brown, its newly minted chief executive, would assume those responsibilities. Bruce Gray, head of the company's commercial sales group was also dismissed. Charles Peacock, head of American Technology's government and military sales group, will assume those responsibilities.
The company also dismissed David Carnevale, vice president of marketing; James T. Taylor III, vice president, general counsel and secretary; and Rose Tomich-Litz, vice president of operations. Three non-executive employees were also fired.
In addition, American Technology announced plans to close its sales office in Maine. The closure comes after the company shut down its Carson City, Nev., office earlier this summer.
Taken together, the moves are expected to save more than $1.5 million annually, the company said. |
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