Dynavox Withdraws its 2011 Earnings Forecast, Shares Get Decimated

Shares of Dynavox Inc. (DVOX) nosedived more than 30 percent to $5.70 — on volume of around 1.4 million — for the biggest decline in the R2K Index. The seller of speech software for individuals with significant language disabilities warned Wall Street late Thursday that the co.’s first-quarter results would be weak. The Pittsburgh, Pennsylvania – based Dynavox said in its 10-K form for the fiscal year ended July 2, 2010, that it is withdrawing its earnings forecast for the whole of fiscal 2011, citing soft demand “for both its speech generating devices and software products”.

On Aug 25, Dynavox had forecast 2011 adjusted earnings of $0.56 to $0.62 cents p/sh, before items, on sales growth of 14 to 17%.

Shares of DVOX were off by 29.43% to $5.73 Friday morning. The stock has traded as high as $19.20 this year.

Dynavox plans to report first quarter 2011 financial results on Thursday, November 11, 2010, after market close.

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About Ron Haruni 1123 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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