GSPN ( $12.50-$14.50-?) posts 21 pct sales drop, reports 1c vs 1c
RED BANK, N.J., July 30 (Reuters) - GlobeSpan Inc.
<GSPN.O>, which makes software and microchips for high-speed
Internet connections, on Monday said revenues fell 21 percent
in the second quarter after a spate of order cancellations.
Globespan, whose products are used in digital subscriber
line, or DSL, Internet connections said it had a loss of $102.8
million, or $1.42 a share, on revenues of $60.3 million
compared with the same period a year ago. On a pro forma basis
-- excluding non-cash acquisition charges, restructuring and
other charges -- the company said it had a profit of $699,000,
or 1 cent a share.
On June 2, Globespan warned that it expected to post a pro
forma profit of 1 cent per share, excluding restructuring and
other charges.
Shares of Globespan closed at $14, down 99 cents on Monday
on Nasdaq, having tumbled from as high as $145 late last year.
Digital subscriber lines provide fast Internet connections
over ordinary telephone lines, although the technology has run
into significant competition from Internet access offered by
cable companies.
((New York Newsdesk, 646-223-6000))
REUTERS
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Q2 revenue after the bell of $60.28 million for the second quarter of 2001, a
decrease of 20.6 percent from the year-ago period. Net income in the quarter
was $699,000, or $0.01 per share, compared to 7.89 million, or $0.11 per share
in the comparable period last year. Analysts were expecting the company to
earn $0.01 on $64 million in revenue. The stock is gaining on 3,200 REDIBook
shares after a $0.74 loss in the regular session.
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