Newport Beach’s SM&A; Cites Delays, Reports Lower Revenue

S M & A Corp. shares fell 31% Wednesday, the 10th biggest percentage loss in U.S. markets, after the company, which helps government contractors, said its third-quarter revenue would fall short of expectations partly because of delays in some of its projects.

S M & A shares fell $7.63 to $17.25 in trading of 826,800, more than 14 times the three-month daily average. Earlier in the session, the stock traded as low as $14.50.

The Newport Beach company, which also provides computer systems consulting for various industries and government agencies, said its third-quarter revenue is expected to total $22.3 million, about $3.5 million less than forecast.

The revenue shortfall and some onetime reorganization expenses related to recent acquisitions are expected to reduce per-share earnings by about 6 cents, the company said. That will be offset by a $1.55-million gain from the sale of its interest in Savant Corp., a computer diagnostics company.

The company said it still expects to meet third-quarter profit projections of 16 cents a share.

It is scheduled to release the quarterly earnings the week of Oct. 19.

The delayed projects will begin in the fourth quarter and the following two quarters, the company said.

Bernard Picchi, an analyst with Lehman Brothers Inc., said he cut his third-quarter earnings estimate for S M & A to 12 cents a share from 17 cents.