Wireless modem, data card and embedded module vendor Option has reported first quarter sales down a third from 2008, scoring revenues of €50.7 million compared to €76.7 million last year.
This meant the company recorded a net loss for the quarter €5.2 million, against a net pofit last year of €2.8 million.
The vendor blamed customers "exercising caution" with their inventory management, meaning that although the demand from end-users may be high, that does not mean that the operator necessarily re-orders the same amount of products from Option.
A spokesperson told Mobile Europe that the vendor has also faced "strong competitive pressure from low cost vendors (Huawei and ZTE)."
But Option said that with new credit lines of €12 million, and ongoing restructuring, it was confident it could cope with the current adverse market conditions.
The adverse results came despite growth in sales of USB broadband modems and dongles by mobile operators in recent months.