eMachines sees Q2 loss of $0.30-$0.33 per share
IRVINE, Calif., June 19 (Reuters) - Low cost PC maker eMachines Inc. (NasdaqNM:EEEE - news) said Monday it expects to report a second quarter loss of $0.30 to $0.33 per share on revenues in the range of $115 to $125 million citing its previous warnings that demand has been significantly below market expectations.
eMachines had been expected to show a loss of $0.01 per share for the quarter ending July 1, according to the consensus estimate compiled by First Call/Thomson Financial. The company, the third largest vendor of desktop PCs sold through U.S. retailers, is partially owned by Trigem Computer Inc. , South Korea's second largest computer maker.
The drop in consumer PC ``demand has coincided with concerns about interest rates, the state of the economy, and the growing instability of the public securities markets,''
President and Chief Executive Officer Stephen Dukker said the company also believes there has been a significant accumulation of inventory on the part of competitors and in the retail channel, resulting in significant discounting.
``We anticipate that the third quarter results will be harmed by displacement of products scheduled for release in the third quarter by the sale of current products at significant discounts,'' he continued.
``While we believe that the current inventory overhang will be resolved early in the third quarter, looking forward, we expect that growth and demand will correlate to consumer confidence in the economy and stability of the public securities markets,'' said Dukker.
Analysts had expected the company to report profits of $0.01 and $0.03 per share in the third and fourth quarters, respectively. The company said it expects to announce second quarter results on July 26. |
