Tough quarter for Micronics
Micronics reports that fourth-quarter revenue estimates are expected to come in 15 to 18 percent below earlier projections.
Micronics, which supplies high-performance system boards and multimedia peripherals for PCs, saw its stock drop as low as 5 percent in morning trading to 2-5/16. The company had closed at 2-7/16 the day before.
The company anticipates revenues fall between $38 million and $41 million for the period ending September 30, compared with earlier forecasts of $45 million to $50 million.
"The strong rebound in government channel sales that we expected has not materialized," said Shanker Munshani, president and chief executive.
He added that slow sales stemmed from customers' uncertainties over the company's budgeted funds and from a weak distribution channel.
Micronics has posted losses for two consecutive quarters, with a $1.9 million net loss in the third quarter and a $916,000 loss in the second. Revenues, meanwhile, have declined by double-digit percentages during those two quarters; the decline is the same in comparison with year-ago figures.
The company said it will report its fourth-quarter results on October 28.