as long as semi companies are doing this, I'm waiting:
from today's WSJ:
Nat Semi warned last month it would lose money in the fourth quarter because of weak demand for chips used in PCs and computer networks. Thursday, it reiterated that it expected an operating loss for the fiscal first quarter ending Aug. 30.
"Current weekly order rates suggest that the market decline may be bottoming out," said Brian Halla, Nat Semi's chief executive officer, in prepared remarks. "But visibility is limited and the outlook for the current quarter is essentially flat with the fourth quarter."
The company's stock rose 25 cents to $15.375 in composite trading on the New York Stock Exchange Thursday.
Analysts said that Nat Semi has been caught by the same inventory pile-up in the PC industry that is hurting Intel Corp., which expects to report a flat second quarter. In addition, Nat Semi hasn't taken much market share from Intel and missed a product cycle in the battle over computer-network chips, said Jonathan Joseph, analyst at NationsBanc Montgomery Securities in San Francisco.
"They had a tough quarter and I think they will have tough quarters for some time to come," said Mr. Joseph, who cut his estimates for the new fiscal year from a loss of five cents a share to a loss of at least 75 cents. "Meanwhile, they have articulated a good strategy but it has yet to be embraced by the market."
Mr. Joseph was referring to plans to create a single-chip PC for low-cost computers and "information appliances." But Nat Semi isn't expecting to field any products until late this year or early next year. Meanwhile, its wireless and analog products, which had been hurt by the economic slowdown in Asia, showed improvement over the fiscal third quarter.
To deal with the slowdown, Nat Semi slashed costs, closed some factories and laid off 1,400 employees during the quarter. |
