Checkmate Electronics Inc, the Nasdaq listed supplier of point-of-sale payment automation systems, may be heading for losses. It says that its second quarter results may not exceed break even. The company, based in Roswell Georgia, attempted to soften the blow by stating that it wasn’t able to predict its results accurately, but the markets didn’t feel the need to wait for clarification and the stock took a severe pounding. Shares are now trading at around $8, the lowest point for two and a half years. Payment automation systems such as check readers and signature capture devices are tipped as being a high growth sector, but the uncertainty over Checkmate’s stock reflects the fact that the company lost out on its formerly exclusive deal to supply US giant Wal-Mart Stores Inc with point-of-sale equipment. Canadian rival, International Verifact Inc of Toronto stole the $4.2m worth of business out from under their nose.
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