"Friday March 7 5:31 PM EST
Silicon Storage Technology Inc sees Q1 results below Q4
SUNNYVALE, Calif., March 7 (Reuter) - Silicon Storage Technology Inc said Friday it expects operating results for the first
quarter ending March 31, to fall below fourth quarter levels due to lower than expected shipments to the personal computer
and consumer markets and the continued steep market-driven declines in average selling prices during the first quarter of this
year.
In the fourth quarter ended in December, the company reported a profit of 737,000, or $0.03 a share, on revenues of $23.5
million.
In the first quarter of 1996, the company earned a profit of $4.2 million, or $0.17 a share, on revenues of $21.5 million.
Lower than expected order and shipment rates in the quarter, and lower average selling prices are expected to constrain net
revenues and result in lower gross margins, the company said. Silicon Storage expects the trend to continue at least through
the first half of 1997.
"Our operating results will continue to be very sensitive to market-driven declines in average selling prices and unit demand as
we ramp our production to more cost effective die geometries and introduce new products," said Bing Yeh, president and
chief executive officer.
The company is accelerating its cost reduction efforts by working with our manufacturing partners in an effort to reduce die
size, improve yields and negotiate more favorable pricing.
It is also continuing to develop new products and product families, which we expect to introduce over the next 18 months to
expand its product, application and geographic diversification, as well as reduce dependence on the personal computer
market. The company said it is also pursuing growth opportunities through expanded technology licensing with additional wafer
foundry and other logic IC manufacturers for non-competing applications. "
Well, I do not have to wait until April to make the investment decision. This one will be a dog for a while and I will drop it from my radar screen. Take care. |
