I agree.
Mr. Dunn's comments come amid another round of devastating news for the telecommunications sector yesterday.
L.M. Ericsson Telephone Co. of Sweden and Lucent Technologies Inc. of New Jersey announced plans to chop 20,000 and 6,000
jobs respectively, and WorldCom Inc., a major U.S. telephone carrier, said its revenue this year will be lower than expected.
nationalpost.com
See also:
nationalpost.com
Corning posts loss as revenue crashes 50%
Telecom sector fallout
Reuters
CORNING, N.Y. - Corning Inc., the world's largest maker of fibre-optic cable, posted a first-quarter loss yesterday compared
with a profit a year ago as revenue tumbled by more than 50% in the midst of a clampdown on spending by the
telecommunications industry.
The Corning, N.Y.-based company repeated previous statements that demand has stabilized, and it expects second-quarter
revenue to improve from the first quarter.
Corning posted a first-quarter net loss of US$90-million (US10¢ a share), compared with a profit of US$132-million (US14¢) a
year ago. Revenue in the quarter fell to US$898-million from US$1.92-billion last year. Sales were also down 8% from the
previous quarter. Corning blamed the decline on its weak telecom business, which makes up 70% of sales.
Corning said earlier it would lose US10¢ a share on revenue of about US$900-million. It had said it expected to lose US14¢ to
US18¢ a share and post sales of US$925-million to US$950-million.
Before the April earnings pre-announcement, analysts had expected Corning to post a loss of US17¢ a share. They had all
readjusted estimates to US10¢ since then.
Corning said yesterday it expects second-quarter sales of US$900-million to US$925-million and a net loss similar to the first
quarter's before restructuring charges.
Even when there's good news it's bad news:
``Until the carrier (capital spending) picture on a global basis really starts to improve,
investors are likely to remain fairly skeptical about the company's ability to grow the top
line (revenues), despite a clear and consistent focus to lower costs and prop up
earnings through restructuring,'' said one analysts, who asked not to be identified.
biz.yahoo.com
Don't expect either company to look wonderful short term but they don't look catastrophic, either. Not enthused about them but the cutting edge outfits not carrying a lot of baggage....
With regard to chips, I note PHTN, which sells to them, has a stock price that just can't stay down
finance.yahoo.com |
