Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (36900)	5/1/2002 10:39:01 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68380

Wind River warns of wider loss in Q1 (WIND) by Allen Wan Software company Wind River Systems (WIND) announced that it expects a loss of 12 to 14 cents per share in the first quarter, wider than the 2 to 4 cents that it had forecast earlier. The company also said that it now expects revenues to come in a range of $64-$66 million in the quarter, less than the $76-$80 million it had predicted in its last earnings call. The company blamed slumping demand for its products, saying that a prediction that business would remain steady hasn't materialized. Wind River also announced plans to reduce operating expenses by about $4-$6 million per quarter through a combination of job cuts and other cost saving initiatives. "On our last earnings call I gave guidance assuming our end-markets would remain relatively flat based on the optimism exhibited in January and early February. The past few months of challenging announcements in the technology sector show that this stabilization didn't happen. Certain end-markets, particularly the communications infrastructure market, continued to weaken throughout the quarter. This has further impacted and delayed our customer's decisions on purchasing and outsourcing," said Tom St. Dennis, president and chief executive officer. Shares fell 8.2 percent to $10 on Wednesday. [Harry: This is not a good sign for telecom system sales and development. It means equipment supplier have either slowed development to reduce expenses to match sales or the rate new seats are bring added has fallen dramatically. Typical WIND rev comes from new sales and the yearly re-newal of licenses on a per seat basis. The suggestion is systems development activity is down substantially. This pretty much mirrors what ONIS and TLAB has said.]