Tech licensing company DTS Inc.'s (NASDAQ:DTSI) small cap stock took a major fall on Monday after it gave investors a warning about lower sales in the second quarter and a serious drop in the number of Blu-ray players it sold.
According to Forbes, the company said second-quarter financial reports would come in lower than analysts' original expectations, caused by a slump in demand for Blu-ray players. The company expects revenue of $21 million to $22 million, compared with an earlier estimate of $24.3 million. Net income will also be affected by the potential acquisition of SRS Labs and tax problems related to non-deductible acquisitions.
"While we typically experience a sequential decline in revenue in our second quarter as a result of seasonality in our end markets, global economic uncertainty has contributed to results that are nevertheless below certain estimates," CEO Jon Kirchner stated. "Softness in Blu-ray – including standalone players, PCs and game consoles – was partially offset by significant year-over-year growth in the network-connected markets, which we expect to represent the majority of our business over time."
According to RTTNews, DTS shares have been falling for the last week, and today touched the stock's lowest value in a year. By 3:59, the company's stock was down 25.14 percent to $18.28.