o2 wireless falls on following 3Q

o2wireless Solutions, Inc. (Nasdaq: OTWO) slipped 22 percent Thursday after announcing third quarter operating profit of 6 cents a share, and a net loss of 56 cents a share after one-time items. First Call was predicting a profit of 4 cents a share.

Shares in the provider of network services to the wireless telecommunications industry were off 3.31 to 11.56

Revenue in the third quarter was $37.4 million, an increase of 308 percent over the third quarter of 1999 and a sequential increase of 22 percent over the second quarter.

Gross profit in the third quarter was $11.1 million, representing gross margin of 30 percent.

Net income excluding charges was $1.6 million, or 6 cents a share, and for the third quarter of 1999 was $19,000, or a break-even amount per diluted share.

Net loss for the third quarter was $9.4 million, or 56 cents a share, compared to net income of $1.2 million, or 8 cents a share in the corresponding period a year ago.

Charges included the accretion of remaining discounts from the company's subordinated notes and preferred stock, a write-off of loan financing costs, goodwill amortization, preferred stock dividends, amortization of deferred stock compensation and actual income tax expense, assuming an effective tax rate of 40 percent.

The company said that as it enters the fourth quarter it will evaluate entrance into the international marketplace.