I just read the release moments before seeing your post. This must be their 56k modem business, 'cause what would MP3 players have to do with the PC problems really...
Eiger Technology, Inc. Updates First Quarter Outlook
08:40 EST Friday, January 12, 2001
Eiger Technology, Inc. (Eiger) a vendor of computer products and peripherals sold through OEM customers, today
announced that it expects to report lower revenues for its first quarter of fiscal year 2001 ending December 30, 2000 as
compared to the same period in 1999, and a loss per share greater than Bay Street expectations.
The company expects to report net revenues for the first quarter of fiscal 2001 in the range of $8 to $10 million and a loss
per share ranging from $0.04 to $0.07 for the quarter. This revenue reflects weakness in the overall economy, a significant
decrease in consumer demand for personal computers, a general slow down in retail sales, and a channel-wide over supply
of personal computer inventory.
Data from retailers and market research firms suggest that current softness in the PC sector is a function of increases PC
inventories at a time of reduced retail spending. Accordingly, OEMs have significantly reduced their purchasing of
computer components and peripherals. This purchasing slowdown is evident in the recent slate of downgrades to EMS
companies by the investment industry.
Eiger is of the opinion that the current retraction in PC sector is nothing more than a temporary inventory problem that will
be resolved over time. The PC market may not, however, recover until late 2001 due to current inventories and economic
uncertainties that could further affect consumer spending. Although Eiger is confident that its OEM manufacturing revenues
will rebound to prior levels as the PC marketplace and overall economy rebound, Eiger will experience softness in its
OEM manufacturing revenue for the balance of fiscal 2001.
Eiger Technology, Inc. is headquartered in Toronto, Ontario. Through its facilities in South Korea, New Jersey and
California, Eiger manufactures and distributes electronic and computer peripherals such as 56K fax/modems, MP3 players
and DSL modems to OEM and consumer markets worldwide. Eiger also owns 25% of Nixxo Technologies. Nixxo is a
GSM chipset and operating system design company based in California. The GSM cellular market represents 65% of the
world cellular phone market with growth rates of over 30% a year. Eiger is a publicly traded company listed on the
Toronto Stock Exchange (symbol: AXA). Visit Eiger Technology, Inc.'s web site at www.eigertechnology.com |
