Genesis Microchip Revises Revenue Estimate for First Fiscal Quarter
SAN JOSE, Calif., Jun 13, 2002 (BUSINESS WIRE) -- Genesis Microchip (Nasdaq: GNSS chart, msgs), a world leader in the development of display technologies, today announced that it estimates first quarter fiscal 2003 revenues (for the quarter ending June 30, 2002) will be within a range of $41 million to $43 million, compared to its previous estimate of $60 million, as a result of a recent drop in orders.
Genesis said it believes the order decline is primarily due to customers working off their inventories that were built up in anticipation of continued strong unit growth in the flat panel monitor market. The company believes that growth has collapsed due to sector-wide LCD panel manufacturing constraints. In addition, the company believes that some of the shortfall is due to losing some designs to competitive solutions, specifically in brands that are not selling through computer OEMs. Genesis stated that it does not believe the shortfall in revenues is a result of greater-than-expected price declines for its products in the quarter.
"We are disappointed that revenues will be significantly lower than our expectations," said Amnon Fisher, CEO of Genesis. "The flat panel monitor market is being affected by panel manufacturing constraints that have resulted in excess inventories and curtailed our revenues. However, we believe that this market will return as a high-growth sector and that, as the market leader, Genesis will be a prime beneficiary of this growth."
The company will host a conference call tomorrow, June 14, 2002, at 8:00 a.m. (EDT) to discuss the revised estimates for the current quarter, which ends on June 30, 2002. The dial-in number is: 212/346-6446. A replay of the conference call will be available through June 19, 2002 and it can be obtained by dialing 800/633-8284, or by calling 858/812-6440 for international callers. The access code for the call is: 20683678.
WOW...major drop in revenue - almost 1/3 less than originally expected.
Look out below... |
