RRsat plunges as higher costs leave flat 1Q earnings

NEW YORK—Shares of audio and television broadcast equipment supplier RRsat Global Communications Network Ltd. plunged Monday after the company missed analyst profit expectations.

Shares in the Omer, Israel-based company fell $2.89, or 19.5 percent, to $11.94 in afternoon trading. They earlier fell to a year low of $11.72 after trading in the last year between $13.50 and $26.50.

Profit remained flat at $2.6 million, or 15 cents per share, year over year.

Excluding one-time costs and gains, the company made 20 cents per share compared with 16 cents per share in the 2007 first quarter while sales rose to $17.8 million from $13.3 million.

Analysts polled by Thomson Financial expected profit or 20 cents per share on sales of $17.5 million. Analysts typically exclude one-time items.

While the company met analyst expectations for profit excluding one-time items, it missed another key metric -- earnings before interest, tax, depreciation and amortization, or EBITDA.

Thomas Weisel Partners analyst James D. Breen noted that the company's EBITDA of $4 million was below both his and Wall Street's estimate of $5 million.

EBITDA income was hurt by currency rates, a one-time severance charge and costs relating to non-contract services, he said.

As a result, he reduced his 2008 EBITDA estimate to $18.8 million from $21.7 million and his 2008 earnings per share estimate to 82 cents from 92 cents.

The company's chain of satellite dishes broadcast TV and radio signals around the world.