To: RR who wrote (37612 ) 6/7/2001 7:38:54 PM From: Sully- Read Replies (1) | Respond to INTC reaffirmed their drastically reduced guidance, the rest of the market is not as good...Company warns for June qtr; sees revenues down 30%, CEO, Cyrus Y. Tsui, "As we have no visibility, our current outlook assumes no near term improvement in business levels." Company warns for Q1; sees loss of $0.20-0.25 per share; current EPS estimate is ($0.10); sees revenue in the range of $7.6 to $8.4 mln, which would be down 30% from last quarter Company warns for Q3; sees EPS of $0.45, vs estimate of $0.82 due to a decline in revenue in the automation business. Automation revenue is now expected to be approximately 15% below last year's Q3; cites further deterioration in North American industrial automation markets. Company also to reduce its workforce by approximately 1,000 and consolidate and close facilities. Company warns for Q2; sees loss of $0.10-$0.12 vs $0.05 profit anticipated by analysts; projects revenues of $10-$12 mln (consensus $29.8 mln); cites telecom weakness in N. America, which is now spreading Europe and some parts of Asia. Company warns for Q4; sees revenues for the period of $60-$65 mln (consensus $121.5 mln); cites short-term competitive inventory pressures, significant price reductions throughout the market and softened consumer demand over the past two months. Company warns for Q4; reduces Q4 revenue est. to $450-$475 mln (mean $556 mln). "Business conditions worsened in 3Com's fourth quarter," Claflin said. He laid most of the blame for the company's poor quarter on excess product inventories and an industrywide glut of consumer cable and DSL modems that has driven down the prices of those products. Reduce June Fiscal 4th Quarter Estimates - Molex Incorporated, a global electronic components company, today reported that as a result of continuing weak industry conditions, the company will reduce worldwide employment by approximately 900 full time employees and approximately 600 temporary employees. In addition, Molex will write off slow and excess inventory and has announced the closing of three smaller plants. The total pretax charge as a result of these actions will be approximately $42 million and will be taken in the June 2001 quarter......... However, the continuing down turn in the computer, telecom and consumer markets makes it apparent that this action is necessary to size the company more closely to projected future levels of business.'' Krehbiel added, ``Molex is working to balance the short and long term needs of both the company and its employees during a very difficult period.'' Molex now expects June quarter sales to be in the range of $510-530 million compared with prior guidance of $540-560 million. Earnings per share prior to the charges mentioned above is expected to be in a range of $.21 - $.23, compared with prior guidance of $.26 - $.28. Accenture to Cut Jobs, Cites Economy - Accenture Ltd., the world's largest management and technology consulting firm, on Thursday said it would cut about 2 percent of its staff ........ Accenture, formerly known as Andersen Consulting, said the reductions would affect about 1,400 employees, including up to 800 through a special voluntary sabbatical program for consulting personnel, mainly in the United States. The remaining 600 jobs will be eliminated as part of its restructuring, the company said. ``While we had hoped to avoid making any work force reductions, even temporary ones, the current economic climate and our lower-than-usual attrition levels have created a modest imbalance between the demand for our services and our current staffing levels,'' Accenture Chief Executive Joe Forehand said.
