724 Solutions Warns Of Lower Fourth-Quarter Sales

724 Solutions

724 said revenues in the quarter were about $5.6 million to $6 million, down from earlier stated targets of $7 million to $8 million. For the full year, revenues were seen doubling from 2001 levels, rising to $43.6 million to $44 million.

Losses in the fourth-quarter will range between 23 cents and 25 cents per share, for a full-year loss of between $1.16 and $1.18 per share.

724 Solutions also said it would reduce annualized operating expenses by a further 20 percent from previously announced levels, which will involve the shedding of employees and facitlities.

Shares of 724 closed at C$3.95 on Thursday, down from a year high of C$43.75 as investors worry about the firm's long term financial viability.

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