Brain,
How can this guy claim "We are not seeing any slowdown PCs, and we are not seeing any slowdown in chip demand," said AMD's Deininger. "And we not seeing any slowdown in the cellular phone area for flash memories, microprocessors and other communications chips. It is unbelievable that people in the rest of the industry would be saying in the press that they are seeing a slowdown or we've reached the peak [of market growth]. We just don't see that ladies and gentlemen right now."?
That is pure bull as far as I am concerned. Intel warned about this Q in Sept. and they lowered their growth rate in Q4 to half of the norm. RFMD got killed today due to their forward comments on communication chips. And now we have this from CNXT:
NEWPORT BEACH, Calif. Oct 18 (Reuters) - Modem chip maker Conexant Systems Inc. (NasdaqNM:CNXT - news) on Wednesday met analysts expectations in its fourth quarter earning report, but forecast lower revenues for the next quarter due to slipping demand.
Pro forma net income for the quarter rose to $43.5 million, or 18 cents per diluted share, compared with $39.4 million, or 18 cents a share, in the year-ago quarter. That number included amortization of intangible assets and special charges.
Conexant met Wall Street analysts' average forecasts that the Newport Beach, Calif-based company would post earnings of 18 cents, according to First Call/Thomson Financial.
Revenues were seen falling in the next quarter amid slipping demand for cellular phones and personal computers, the company said.
``We are entering the first quarter of fiscal 2001 with a clear market environment of weakening demand in digital cellular handsets and consumer PCs,'' Dwight Decker, chairman and chief executive, said in a news statement.
He forecast a 5 to 7 percent decline sequentially in revenues, with gross margins maintained in the range of 46 to 47 percent. Operating expenses were seen increasing, for margins in the range of 6 to 8 percent.
Also from Texas Instrument:
Overall, TI's revenue will likely be flat between the two quarters, the company said, and revenue from semiconductors for the wireless market will actually decline.
One of the problems is an excess of cell phones.
"Revenue from wireless will decline sequentially as certain major handset customers absorb semiconductor inventory in the fourth quarter, more than offsetting the continuing revenue growth in chipset and base-station products," TI said in a statement.
I think the CEOs of companies are more trustworthy than sell-side analysts. But I don't think they are immune to wishful thinking or greed. I think they exagerate to their benefit.
If communication and PC is slowing down, then I have to wonder where is the growth in chip market coming from?
ST |
