For those seeking a sign of the times - not Boca, but close enough...
SAN JOSE -(Dow Jones)- Diamond Multimedia Systems Inc. said Wednesday that it expects a first-quarter loss of 12 cents to 18 cents a share on revenues of about $112 million - between two cents and four cents less than analysts were expecting.
Diamond Multimedia provides interactive and connection technology for desktop computers.
The company said after the market closed Wednesday that its revenues for the quarter were affected by lower-than-expected demand in the high-end mainstream graphics market, the transition from 33.6kbps to 56kbps modems, lower product demand in Europe, Korea and Japan, and price declines in the modem and graphics markets.
(i.e. Nobody is buying our modems)
Its gross margin, the company added, will be lower in the first quarter ended March 30 than it was in the previous quarter.
The company attributed the decrease in margins to lower volumes for the quarter and by price protection resulting from "aggressive channel pricing."
(i.e. We can't even give 'em away)
A First Call survey of 6 analysts yielded a consensus earnings estimate for Diamond Multimedia of 14 cents a share for the latest first quarter for Diamond Mutlimedia.
For the first quarter in 1996, the company posted net income of $11.2 million, or 32 cents a share, based on revenues of $188 million.
At the close Wednesday, shares of Diamond Multimedia (DIMD) were up
25 cents, or 3.03%, at $8.50.
Copyright (c) 1997 Dow Jones & Company, Inc. |
