Well, this doesn't sound good.
11/27 20:32
ASAT Holdings May Turn to 2nd-Qtr Loss as Chip Sales Drop 75%
By Alan Patterson
quote.bloomberg.com
Hong Kong, Nov. 28 (Bloomberg) -- ASAT Holdings Ltd., Hong Kong's largest packager of semiconductors, may say it turned to a loss in its second quarter as sales to chip customers tumbled by almost three quarters.
Nasdaq-listed ASAT, which reports earnings at 4 p.m. New York time today, will probably say its posted a loss of 12 cents a share in the three months ended Oct. 31, compared with a profit of 15 cents a share a year ago, according to an estimate by research company First Call Corp.
ASAT, whose customers include communications chip companies such as Analog Devices Inc. and Altera Corp., said earlier this month it would write down $28 million from the value of unspecified assets in the second quarter. The company won't make a profit next year, some analysts said.
``They'll guide the current January quarter down from the October quarter,'' said Christopher Bliss, an analyst with J.P. Morgan. ``ASAT won't return to a profit until January 2003.''
Second-quarter sales may drop to $27 million from $104 million a year ago, ASAT said earlier this month. While revenue will beat the company's earlier forecast, ASAT said it will take more measures to cut costs and improve use of factory capacity.
The company, which has fired about 1,500 employees, or more than half its staff, since April, will close an unprofitable unit in Nancy, France because of declining sales. The unit will file for court protection, ASAT said.
Shares in ASAT lost more than two-thirds of their value in the year to date. |
