Active (ACPW) says it won't hit its Q3 revenue and EPS targets, or its full-year revenue growth, adjusted EBITDA, and net income targets. The company blames weaker-than-expected Chinese sales caused by having a mistaken understanding of a Chinese distribution partnership. (PR)
Whereas Active previously announced it had struck a partnership with an IT services firm known as Digital China Information Service Company (a division of a Fortune China 100 firm), it actually struck a deal with Qiyuan Network System Limited, which is unaffiliated with Digital China.
CFO Steve Fife: "Our experience this year in China has been very disappointing and for now is unpredictable." Indeed.
Q3 results arrive on Oct. 29.