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Talk about a kick in the head. I've seen quite a few warnings come from various companies and this has to be one of the worst IMO. Nothing positive from an investor perspective and very little to set an expectation. Example: are revenues down by 80%, 70%, 50%, etc.; margins - no mention; expenses up a lot, flat, down?; cash flow - good, bad? - no mention; just a statement that they are going to lose money - cold and blunt BUT quite vague raising uncertainties about performance; litigation proceeds - enough to be profitable - why not say how much? OEM wins - how many?, no names, no expectations for next quarter? Already shipping Banshee - what two at a time? Talk about investor uncertainty - they just blew away any hopes of restoring investor confidence this year. OEM announcements will not change this sad fact. The conclusion that one can draw from this release is that the graphics market (chips, boards, etc) is a money losing proposition for the for the rest of the year. DIMD, CREAF, and the rest are screwed. Was this their intent - probably not - but the stock will react in this way due to the uncertainty. My prediction is that the stock will open quite low, loyal followers will dump, and the big boys will cover their shorts laughing all the way to the bank. How could a company with such technical and marketing savy be so clueless when it comes to dealing with investors and the street? Joe C. |
