Major chipset manufacturer Opti reported that current sales will come in below last year's levels, evidence of trying times for the company after Intel's meteoric rise in the chipset business and an industrywide decrease in demand for PCs.
For the quarter ending March 31, Opti said its sales will be 10% to 20% lower than the same quarter of 1995, resulting in a net loss of $0.25 to $0.35 per share. Opti also expects to report a net loss in the second and possibly the third quarter of this year.
Chipsets are companion chips to 486 and Pentium processors. The processor and chipset constitute the core of a PC system. Intel has come to dominate the desktop PC chipset business in the last two years with its wildly successful Pentium-processor-based Triton chipset, freezing out other vendors in many cases.
"While demand for our notebook and audio products has met our expectations, demand for our desktop products has fallen off significantly, resulting in a need to adjust our fiscal 1996 forecast," said Jerry Chang, Opti's chairman and CEO.
The company said in a statement that "Opti's financial results for the upcoming quarter...and for the year will fall significantly short of the range of analyst estimates and of its internal targets."