September 14, 2010 / 1:53 PM / 8 years ago

UPDATE 1-Wireless Matrix posts quarterly loss, ARPU drops

* Q1 loss $0.01 vs est. profit $0.01

* Q1 rev $9.5 mln vs est. $9.6 mln

* Q1 ARPU $25.35 vs yr-ago $32.45

* Sees overall revenues flat in FY2011

Sept 14 (Reuters) - Wireless Matrix (WRX.TO), a Canadian fleet management service provider, posted a fourth straight quarterly loss, hurt by lower satellite communication service and hardware revenues and a 22 percent drop in average revenue per unit (ARPU).

The company said satellite communication service revenues have been declining as it shifts its legacy subscriber base to application subscriptions enabled by lower cost wireless communication services.

Satellite communication subscribers represented28 percent of the firm’s total subscribers and 34 percent of revenue in May-July, versus 52 percent of subscribers and 44 percent of revenues a year earlier.

For the year to next April, the company expects overall services revenues will be flat as it transitions its satellite customers, while hardware revenues will decline as its shift to outsourced production leads to more competitive pricing.

Wireless posted a May-July net loss of $454,000, or 1 cent a share, compared to a net income of $173,000, or breakeven a share, a year earlier.

Revenue fell 11 percent to $9.5 million. ARPU fell to $25.35 from $32.45 during the quarter.

Analysts on average had forecast quarterly revenue of $9.6 million and a profit of 1 cent a share, according to Thomson Reuters I/B/E/S.

The company said it had 85,117 subscribers at end-July, up 18 percent from a year earlier.

Wireless Matrix shares have gained 46 percent since hitting a 10-month low in late-April. The stock closed at C$0.95 Monday on the Toronto Stock Exchange. (Reporting by Jennifer Robin Raj in Bangalore, Editing by Ian Geoghegan)

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