RE:Stock explanation & Home theaters1. There was a second stated reason for the decline, (paraphrasing) a new technology which undermined their product and against which they can't compete until later this year
2. I think half of that 4099K figure has already been realised since deferred revenues are only ~2500K. Even adding that in and being generous with the margins, they would have lost money this quarter/year
it just ran away from it's fair value. It's still ~90% higher than it was this time last year so it's not like this is a meltdown. the market has little patience for high growth company's who mismanage their growth.
The larger concern is that they knew of this shipment delay and it's hardly 'immaterial' since it is above 10% of total revenue. Yet, this is the first time the market is told about it. This didn't happen yesterday.That reeks of poor investor relations and tells you the company is reluctant to broadcast anything remotely negative which I suspect is because they were using their stock to strike deals in China