Media Vision Stock Plummets as Firm Sees 1st-Period Loss
Shares of Media Vision Technology Inc., a once-highflying maker of video and sound accessories for computers, fell 48.8% after the company said it expects to post a "substantial loss" for the first quarter.</br></br>The loss will stem partly from reducing prices on certain of its retail products in response to aggressive price-cutting by the competition.</br></br>The Fremont, Calif., company also said shipment of one of its new multimedia products would be delayed into the second quarter, resulting in a significant drop in revenue for the first quarter.</br></br>The company would not comment beyond a terse news release, which provided no details on which products were involved in the price cuts or shipment delay. Paul Jain, president and chief executive officer, was not available for comment.</br></br>The slide to $11 a share, down $10.50 Nasdaq Stock Market trading, came after Media Vision shares had already tumbled precipitously in recent weeks, following the release of fourth-quarter results showing a growing backlog of unsold products. The one-time Wall Street darling had seen its share value rocket to a December high of $43.75 from $20.25 when it first went public in 1992. From its zenith, Media Vision has lost about $500 million in market capitalization.