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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (48001)	6/15/2001 3:45:12 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

General Semi cuts Q2 forecast, but says cancellations slowing Semiconductor Business News (06/15/01 09:32 a.m. EST) MELVILLE, N.Y.--General Semiconductor Inc. here today downgraded its forecast for second-quarter revenues, warning of a 15-to-17% sequential drop from $102.0 million in the first quarter. The company said it now expects to post diluted earnings per share of $0.01-to-0.03 per share in Q2 compared to $0.12 last quarter, excluding one-time charges. Wall Street's consensus for Q2 earnings was at $0.13 per share prior to today's announcement, based on a survey of analysts by First Call/Thomson Financial. Expressing optimism about the temporary nature of the chip downturn, General Semiconductor CEO Ronald A. Ostertag said new product sales continue to grow despite the overall slump. "We remain committed to maintaining our increased level of investment in new product development currently up 65-to-75% over 2000," said Ostertag, who is also chairman of the Long Island, N.Y.-based company. "We are seeing signs that the business is stabilizing," he added. "Cancellation rates have decreased since the first quarter and new orders have increased in May and early June compared to the very weak levels recorded in April. With the weak market conditions negatively affecting our margins, we are also reviewing all of our operations in order to maximize our profitability and further streamline the business." General Semiconductor has been the target of a unsolicited takeover bid by Vishay Intertechnology Inc., which has told shareholders that merging the two companies would make them move competitive in the difficult discrete transistor business environment (see April 2 story). General Semiconductor management has fought the Vishay's bid.