Unwired Forced To Defend Share Price

Written by Adam Gosling

Friday, 12 May 2006

Wireless broadband provider Unwired has responded to an ASX enquiry about the state of its share price, which has fallen almost 50 per cent in six months. In a query sent to the company the ASX explains, “We have noted a change in the price of the Company's securities from a high of $0.38 on 1 May 2006 to a low of $0.285 today, 11 May 2006.” The company’s shares were trading at around $0.48 in mid-February and were at $0.65 in September last year following the Intel investment announcement. In a statement to the exchange, Unwired says it is unaware of any information which, if announced, might explain the recent fall in its share price. In fact the company says it is please with its growth and the $21.884 million cash it has left from a massive investment by WiMAX supporter and computer chip maker Intel. The company reiterated a recent statement to the exchange that it experienced a 13 per cent increase in customers and 12 per cent increase in revenue during the first calendar quarter – most of which occurred before the company launched its high speed wireless broadband service into the Melbourne market. Unwired today announced it was part of a three way consortium, dubbed AUSalliance, in a bid to obtain funding from the Connect Australia fund, a $1.1 billion honey pot offered by the Federal Government to help boost Australia’s broadband infrastructure. Finally, the company says it expects its operating loss to improve in the current fiscal year thanks to increased revenue associated with its growing customer base. “Unwired confirms that there is no reason to think that the company may record any material or extraordinary items for the financial year ending 30 June 2006 and that it is not aware of any other reason for the recent changes in the price of its securities,” said the statement. Unwired shares recovered to $0.35 today in light of the Exchange statement and AUSAlliance announcement. Related news items Unwired Meets Funding Commitments Ensuring WiMAX Network -30/04/2007 Soul's B Digital Offers Closes at 97.4% -13/11/2006 Soul Reaches 90% Of B Digital -08/11/2006 BigAir First Post-IPO Result A Ripper -13/09/2006 Unwired Revenues Leap 104%: Loss Narrows -24/08/2006 Newer news items Mobile Phones Leading Convergence Charge: IDC -01/06/2006 Primus Offers Optus Mobile -01/06/2006 Unwired Signs Fairfax For Location-Based Content -31/05/2006 3 Australia Reaches 1 Million 3G Milestone -31/05/2006 Vodafone Reveals Strong Aussie Growth -31/05/2006 Older news items Trio To Seek Broadband Funding -12/05/2006 Optus Connects To Disney Portal -09/05/2006 Optus Connects To Disney Portal -09/05/2006 Telstra Offers BlackBerry On Treo 650 -02/05/2006 Free Messenger From 3 - For A Price -27/04/2006 Tag This Now: