Growth Enterprise Market-listed Pine Technology Holdings is principally engaged in the manufacture and sale of digital music players.
A little under a year ago, Pine had just forged a partnership with Microsoft to develop a multi-format audio player which supported the Windows Media Audio standard.
Core Pacific-Yamaichi cut its earnings growth forecast for the next two years to 4.7 per cent followed by 4.8 per cent. The revision followed Pine's quarterly results for the three months to September 30 last year.
Sales in traditional computer products and MP3 players began to experience a slowdown in growth, due to a weakening euro and component shortages. Expenses increased as more engineers were hired to help stay ahead of the pack.
The brokerage expected a more robust second-quarter from Pine because of Christmas sales and lawsuit settlements for MP3.com and Napster. As a result, it posted a 'buy' recommendation on Pine.
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