The Leuven, Belgium company blamed the slide on a key supplier that it said had experienced a delay in the commercialization of a new technology which affected commitments and confirmed orders for 2006.
It said the prompt application of a software fix would allow shipments of the finished data cards to resume as soon as accreditation on the networks of two major European carriers is completed in early 2007.
Option also held out the prospect of higher than expected profits when it said that before the year end, it secured substantial savings in the cost of goods sold and IPR and royalty payments. It said this resulted in a higher than anticipated full year EBIT margin of more than 15%. It is expected that these substantial savings will reduce the level of provision required for past royalty payments and will generate continuing benefits in 2007, it said in a trading statement.
Option, which competes with Novatel Wireless Inc and Sierra Wireless Inc, said rapid technological change saw operators shift network strategies from 1.8 Mbps HSDPA in the first half to 3.6 Mbps HSDPA in the second.
It said this year should see a more stable technology roadmap with the gradual implementation of HSUPA. It claimed it was ideally positioned for this shift as it has successfully completed trials of a commercial HSUPA product.
