PortalPlayer Inc. Thursday (Nov. 10) said it has scrapped plans announced last month for a follow-on offering of common stock.
PortalPlayer (San Jose, Calif.) said company management and the board of directors believe that the current stock price does not reflect the company's market opportunity and future growth prospects. The company has withdrawn an S-1 filing with the U.S. Securities and Exchange Commission (SEC).
In light of the withdrawn S-1 filing, the company said it now expects to report a fourth quarter net income of 37 to 47 cents per diluted share, based on generally accepted accounting principles (GAAP). The company had previously said it expected GAAP net income of 34 to 43 cents per diluted share, with the assumption that it would have more shares outstanding.
PortalPlayer announced that it filed the registration statement with the SEC on Oct. 24. The company planned to offer 4.5 million additional shares of its common stock.