Lightbridge falls after decision to retain TDS business |

Lightbridge falls after decision to retain TDS business

NEW YORK – Lightbridge Inc. stock fell Tuesday after the company said it had decided to retain its Telecom Decisioning Services, or TDS, business, which has seen revenue decline amid consolidation in the telecommunications industry.”Well, I think it is a disappointment that they weren’t able to sell that business or reach an agreement to sell it … in the fourth quarter at an acceptable valuation,” Kaufman Bros. analyst Peter Jacobson said. He added, however, that he thought the stock market’s reaction was “overblown.”Shares of Burlington, Mass.-based Lightbridge fell $1.50, or 15 percent, to close at $8.19 Tuesday on the Nasdaq Stock Market.”I think that over the course of the next six to 12 months … they will probably look to sell this business again,” he said.The telecommunications software and services company’s decision follows a six-month review of the business, which brings in about half the company’s overall revenue.”The process has run its course and we believe it is in the best interest of our shareholders to retain the business,” Lightbridge Chief Executive Bob Donahue said Tuesday.Lightbridge has seen revenue at the TDS business drop following a number of tie-ups in the telecommunications business.TDS, which assists mobile-phone carriers in the process of signing new customers, likely has lost business from Cingular Wireless’ decision to acquire AT&T Wireless, Prudential Equity Group analyst Michael Turits wrote in a note Monday.Sprint Nextel Corp. remains the largest customer at the business, though TDS doesn’t receive the same revenue from the combined company as it did when Sprint and Nextel were still separate before their August merger. Sprint Nextel’s larger size enabled the company to receive better rates from TDS, Jacobson said.Vail, Colorado

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