(By Balachander) China Digital TV Holding Co. Ltd. (NYSE:STV) reduced its revenue forecast for the second quarter, citing lower-than-planned sales of smart cards.
The Chinese provider of conditional access (CA) systems to the digital television market said that smart card purchasing decisions in recent months have become more centralized at the provincial level.
"A number of municipalities in several provinces, for example Henan and Zhejiang, delayed purchasing activities while awaiting alignment from the provincial-level operator," the company said in a statement.
The company currently projects net revenue to be between US$22.4 million and US$23.8 million from US$25.44 million to US$26.41 million guided earlier.
Shipment volume of the company's smart cards is now expected to be between 3.7 million and 3.8 million, down from prior view of 4.4 million to 4.6 million.
China Digital expects to release its second-quarter numbers in mid-to-late August 2012.
ADR's of STV, which have been trading in the 52-week range between $2.78 and $5.44, ended Monday's regular trading at $2.78.