UP STRONG TODAY-- Virata says sales exceed expectations
By Ted Griffith, CBS.MarketWatch.com
Last Update: 10:05 AM ET Sep 14, 2000
cbs.marketwatch.com
SANTA CLARA, Calif. (CBS.MW) - Virata Corp. said Thursday that
strong demand for digital subscriber lines will help boost fiscal second
quarter revenue by 50 percent over the first quarter.
Virata (VRTA: news, msgs)said it expects revenue in the quarter
ending Oct.1 to be about $41.5 million, a 50 percent increase from the
first quarter's $27.7 million.
The maker of chips for digital subscriber line equipment said
second-quarter revenue would be higher than expected, but did not
say by how much. The Santa Clara, Calif.-based company also did not
provide information about profit expectations in its announcement.
Company officials could not be reached for comment early Thursday.
Virata is expected to earn 8 cents per share, according to the average
estimate of analysts polled by First Call. The company is scheduled to
report its full second quarter results Oct. 25.
Virata said it is benefiting from the growing appetite for digital
subscriber line service, or DSL, which allows users to get high-speed
access to the Internet.
"We continue to see strong demand for DSL services worldwide and
believe that DSL capabilities have reached mass market acceptance,"
Charles Cotton, Virata's CEO said, in a statement.
Virata's stock price has been volatile since the company made its initial
public offering in November at $14 per share. The stock has been as
high as $111 and as low as $11.69. On Wednesday, the stock closed
down $3.75 to $50.19.
Just going great,
Michael |
