From Diamonds earnings announcements...
Also from another unrelated article, the concern is too much product stuck in the inventory channel. I'm sure this is what the analysts will be questioning during next weeks earnings announcement.
I will dig around and ask my contacts what's happening in the distribution channels.
Peter Piper (your electronic plumber)
Throughout the quarter, Diamond projected "roughly
breakeven" results, but sales of the highly-regarded --
and high margin -- Monster 3D II card fell near the
close of the period and ended $20 million below
expectations, said William Schroeder, president and
CEO. And the company wasn't ready for pricing wars
that cropped up in the last few weeks.
"Driven by response to competitive pressures in
graphics late in the quarter, we spent or accrued
approximately $3 million in unanticipated, incremental,
[reseller] channel-related costs, including market
development and co-op funds and channel sales
incentives," Schroeder said.
Diamond said it did gain market share in some sectors,
including modems and audio products. Although the
company expects revenue to be flat next quarter,
margins should improve, said chief financial officer
James Walker. Upcoming new products and traditional
strength in the fall should produce a good fourth
quarter, he said. |
