ELNT ($34 down 2)Q2 earnings rise 49 pct, warns on Q3
(UPDATE: Adds analyst, CEO comment, dateline previously Milpitas, Calif.)
NEW YORK, April 12 (Reuters) - Circuit board manufacturer Elantec Semiconductor Inc. (NasdaqNM:ELNT - news) on Thursday reported that its second-quarter net profit rose 49 percent but warned that third-quarter results would fall well short of Wall Street expectations due to slower demand and inventory build-ups.
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Milpitas, Calif.-based Elantec said earnings were $5 million, or 20 cents a diluted share, in the quarter ended March 31, compared with $3.4 million, or 14 cents, in the year-earlier period.
The results were in line with a warning on Feb. 28 that earnings would be between 20 cents and 22 cents. Analysts had lowered their expectations to a range of 19 cents to 21 cents, with a consensus of 20 cents, according to research firm Thomson Financial/First Call.
Second-quarter revenues rose to $30.6 million from $20 million. However, the company said it expects third quarter revenues to drop about 20 percent from the second quarter, citing lower demand and inventory build-ups among its customers. As a result, the company said it sees third quarter earnings per share of 10 cents to 12 cents, against analysts' consensus forecasts of 21 cents.
Elantec's shares dropped $1.21 at $32.70 in after-hours trading, according to Instinet, losing most of the $1.71 gain they made in Nasdaq trading earlier in the day.
The company said it is taking ``comprehensive cost reduction'' measures, but wasn't specific on what actions it plans to implement.
Elantac, continuing to cut operating expenses, said it has already seen ``modest price pressures'' on its DSL business, noted President and Chief Executive Rich Beyer in a conference call. The company expects larger price pressures on the DSL business in the third and fourth quarter, but didn't elaborate.
DSL, or digital subscriber line, service provides high-speed Internet Ga???ing telephone lines.
Beyer predicted a return to sequential revenue and profit growth in the Septe? Du Dur? L+ Ka?sts were not sure such projections were sustainable.
``I would take information like that with a little grain of salt,'' said Robertson Stephens analyst Arun Veerappan. ``There certainly isn't great visibility out there.'' |
