Shares of Dialog Semiconductor (Nasdaq: DLGS) were hit hard Monday, dropping almost 60 percent, after the company warned its earnings per share for 2001 would be much lower than 2000 levels.
The German maker of wireless handset components saw its stock fall 11.25 to 7.75.
The company pointed to reduced volume from one of its major customers as the reason for the earnings drop, but did not give any further details. Dialog Semiconductors supplies handset components to OEMs (original equipment manufacturers) including Motorola (NYSE: MOT), Siemens (Nasdaq: SMAWY), Ericsson (Nasdaq: ERICF) and Sagem.
In addition to the steep earnings drop for the fiscal year, the company said it sees flat revenue growth in 2001 compared to 2000.
In the near term, the company indicated that the volume concern may cause a slight shortfall in the fourth quarter, compared to analyst estimates.