PMCS guides DOWN to 2cents a share earnings was 37 cents estimate 90 days ago and 12 cents yesterday,now i ask what are these companies really worth based on forward earnings??? PMCS holding up at 32 dollars today,and it sure isn't worth that--PMC-Sierra Sees 1Q Rev, Earnings Below Views
Dow Jones Newswires
SANTA CLARA, Calif. -- PMC-Sierra Inc. (PMCS) said weak demand and the cancellation of
backlog will cause first quarter revenue and earnings to fall below expectations, prompting a
workforce reduction.
The company expects income of 2 cents to 3 cents a share, excluding amortization and charges, on
revenue of $118 million to $120 million.
A Thomson Financial/First Call survey of analysts produced a mean earnings estimate of 12 cents a
share on revenue of about $159.7 million.
In the year-ago first quarter, PMC-Sierra earned $28.2 million, or 17 cents a share, excluding
items, in revenue of $102.8 million.
In a press release Monday, PMC-Sierra said due to the slowdown in consumer demand, it will
eliminate 230 employees from its work force of 1,740.
The company, which makes mixed-signal integrated circuits, expects to post an unspecified charge
in the first quarter on the reductions.
PMC-Sierra will reduce some operating expenses but plans to aggressively expand its product
portfolio for the metro, core, access and wireless segments of the communications semiconductor
market.
The company expects to report first quarter results on April 19. |
