Omni Industries Says Dell Orders to Offset Drop in Apple Sales
By Linus Chua
Singapore, Oct. 2 (Bloomberg) -- Omni Industries Ltd., whose shares plunged 12.4 percent in the past two days on Apple Computer Inc.'s profit warning last week, said it expects gains from sales to Dell Computer Corp. to offset any drop in orders from Apple.
The company, which counted on Apple for 10 percent to 15 percent of its first-half sales, said it expects Apple to make up 6 percent to 8 percent of its second-half sales.
Dell, which made up 2 percent to 3 percent of Omni's first- half sales, will likely contribute almost 5 percent in the second- half, said Omni's chef executive Lee Kim Bock at a press conference.
``The order books are still very strong and the momentum is strong,'' said Lee. ``When the volume went down for Apple, the volume for Dell went up.''
Omni said Friday it's still ``on track'' for its year 2000 forecasts. Profit and sales may expand by as much 50 percent this year, Lee said.
Cupertino, California-based Apple shares lost more than half their value after the personal-computer maker said disappointing sales of new products will cause fiscal fourth- quarter profit to lag forecasts.
Sales at Apple were slow in September, usually a lucrative time for PC makers as students buy new equipment before returning to school. Sales of the new PowerMac Cube also missed forecasts, the company said.
Omni shares, down 11.3 percent this year, fell 7 Singapore cents, or 2.6 percent, to S$2.68.
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