BB,
If I had a big ship, I'd try to hire you away to drive it for me -g-.
regards,
Teri
Article below, sounds a bit glum.
sumnet.com
Excerpt:
From Page One of Electronic News: March 9, 1998 Issue
Semi Profits Skid
Even Intel can't explain its slump; profits at other producers also slide
By Carol Haber and Jim Detar
Santa Clara, Calif.--When Intel reported last week that its 1Q98 revenues will be below previous estimates, it was apparently as much of a surprise to Intel as it was to the stock market, which promptly knocked Intel's shares down by about 10 percent in value. Other semiconductor companies also reported disappointing and declining earnings.
Intel reported weaker than expected demand in the PC market for its microprocessors in its first quarter of the year, especially in "turns" business from major OEMs. The company also said that revenue and net income levels would fall below expectations and previous guidance to the Street. Combined with recent similar negative earnings forecast reports by AMD, National Semiconductor and Motorola, it raises the questions of whether the semiconductor market is in for a nasty surprise in the form of a downturn in the first half of 1998, and whether there is softness in demand or whether the pricing situation is taking its toll.
Intel predicted revenues would fall 10 percent from fourth quarter revenues of $6.5 billion. Last quarter, Intel had projected they would be "flat" sequentially.
The company itself was said to be taken aback by the numbers and hastily issued the pre-announcement last week. Intel claims to be puzzled by the development, saying that Asia didn't seem to be the problem, with performance there "flat" as compared to clear declines in other regions of the world. Pentium II has "met expectations," Howard High, Intel spokesperson, said.
The news is especially unnerving for semiconductor manufacturers, which rely heavily on the PC market, and are already dealing with the vagaries of the consumer market and the financial meltdown in Asia.
.....snipped.... (the article is pretty long) |
