Hauppauge Warns of Lower 2000 Earnings; Shares Fall (Update3)
By Michael Lovell
Hauppauge, New York, March 29 (Bloomberg) -- Shares of
Hauppauge Digital Inc. fell 47 percent after the No. 1 maker of
video cards for personal computers said its fiscal 2000 earnings
will be hurt by slower-than-expected demand for digital
television.
Hauppauge shares fell 18 to 20 1/2 in Nasdaq Stock Market
trading of 5.55 million shares, almost nine times the three-month
daily average. The Hauppauge, New York-based company said it
expects fiscal second-quarter net income of about $200,000, or
2 cents a share. Sales for the quarter ending Friday will be
about $19 million. Its revenue was $14.5 million a year earlier.
Before today, Hauppauge shares had risen sevenfold in the
past year.
Higher costs for setting up international offices and
``persistent slow acceptance of digital TV products in the U.S.
may have a continuing negative impact on the company's
performance for the rest of fiscal 2000,' said Ken Plotkin, the
company's chief executive officer, in a statement.
Slower-than-expected demand for digital television surprised
First Albany Corp. analyst Joel Krasner, who expected Hauppauge
to earn 14 cents a share in the second quarter.
``I did think digital television was going to receive a
greater reception than the company is suggesting it will,' said
Krasner, who has a ``neutral' rating on the stock. ``The fact
that it's not will have repercussions for the next several
quarters.'
Hauppauge's WinTV card gives users access to radio, TV and
data broadcasts through PCs. Digital and Internet broadcasters
may be interested in Hauppauge's technology because it can help a
PC function much like a high-definition television for a fraction
of the cost, analysts have said.
Krasner said Hauppauge soon will release technology that
will let customers record television through their PC and that it
is well positioned should demand for digital television increase.
The company plans to report its second-quarter results
during the first week of May.
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