STEC 1Q Profit Surges, Expects Soft 2Q
biz.yahoo.com
Monday May 14, 4:57 pm ET
STEC 1Q Profit Surges on Sale of Consumer Division but Warns of Soft 2Q Sales and Earnings
SANTA ANA, Calif. (AP) -- Computer memory maker STEC Inc. said Monday its first-quarter profit surged on the sale of its consumer division, but it also warned of a weakened overall market.
Quarterly earnings jumped to $6.7 million, or 13 cents per share, from $1 million, or 2 cents per share, in the prior-year period. STEC said the recent quarter's results included a gain of 9 cents per share from the February sale of its consumer division and expenses worth a penny per share related to a Malaysian manufacturing facility and other items.
Wall Street, on average, expected quarterly earnings of 7 cents per share, according to a Thomson Financial analyst survey.
Revenue grew to $47.2 million from $40.4 million, topping analysts' expectations of $44.8 million.
STEC said its performance was hurt by a more than 50 percent decline in prices for DRAM and Flash components since the beginning of the year.
Chairman and Chief Executive Manouch Moshayedi also said in a statement that STEC's largest DRAM customer is still working through a swollen inventory. "In light of these factors, we are pleased that we were able to maintain profitability during the first quarter of 2007," he said.
STEC projected second-quarter earnings and sales below Wall Street's expectations, and its shares fell 36 cents, or 4.2 percent, to $8.13. The stock has ranged between $3.50 and $13.27 over the past year. |
