The "A" Word:
DRAM allocations hit Dense-Pac revenues in current quarter
Semiconductor Business News
(08/09/00, 08:48:42 AM EDT)
GARDEN GROVE, Calif.--Recent DRAM allocations to chip customers are cutting into the sales of Dense-Pac Microsystems Inc., which today warned investors that tight memory supplies will cause it to report lower-than-expected revenue in the current fiscal quarter.
The supplier of three-dimensional, high-density chip packages said the memory allocations were causing "a short-term delay in potential revenue" but long-term growth remains on track. Industry analysts have warned of chip shortages in memories and other commodity ICs as a result of cutbacks in capital spending during the last semiconductor downturn.
Wall Street financial analysts are expecting Dense-Pac to report an earnings-per-share of $0.07 in its current fiscal quarter, which ends Aug. 31, based on a survey by First Call/Thomson Financial. In the company's first fiscal quarter, ended May 31, revenue reached $11 million, with a net income of $865,000, or $0.04 per share. In the second fiscal quarter last year, ended Sept. 30, 1999, Dense-Pac posted revenue of $7.4 million and a net income of $679,695, or $0.03 per share.
"Dense-Pac has had good growth in the last year," said Ted Bruce, president and CEO of the Garden Grove company. "The long-term growth of the company is very viable and exciting. As we continue forward with our strategy, we may encounter 'bumps in the road' which affect short-term quarterly results as we have with the allocation of DRAM components to our customer base." |
