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General Semiconductor warns of 4Q and 2001 misses

    General Semiconductor, Inc. (NYSE:SEM) said Wednesday that fourth quarter and fiscal 2001 revenue and earnings will miss estimates due to slackening demand.

    Shares in the manufacturer of power management devices for semiconductors closed up 0.19 to 10.38.

    As a result of slowing orders, as well as some customer cancellations and push outs, fourth quarter revenues are expected to be 5 to 7 percent below third quarter reported revenues of $130.5 million. Diluted earnings are expected to be in the range of 26 to 28 cents a share. First call was expecting a profit of 34 cents a share

    Revenues for the first quarter of 2001 are expected to be sequentially flat. Sequential earnings per share for the first quarter are expected to be flat to 8 percent lower. The company also said fiscal year 2001 revenues are expected to increase approximately 14 to 16 percent over 2000, with diluted earnings per share expected to rise by 20 to 25 percent over 2000.

    The softness in order trends is a result of an increased level of inventory at distributors and several OEM customers, the company said. It attributed the inventory problems to moderating growth rates in the computer, telecom and automotive end markets.

    General Semiconductor added that it expects the current inventory adjustments should ease in the first quarter of 2001.