O2 Micro International Ltd. (Nasdaq: OIIM) said Wednesday that it expects to miss revenue and earnings estimates for its fourth quarter, citing slowing market conditions and inventory concerns with customers.
Share of the integrated circuits maker, which debuted back in August, slumped 18 percent in yesterday's session, falling 2 to 8.63.
The company said it now expects to report fourth quarter sales sequentially flat to nominally higher than for the third quarter. Net sales for the fourth quarter are now expected to be $11.2 million, down from the previous guidance of $12 million.
Earnings are now expected to be 5 cents a share, a penny short of First Call Corp.'s consensus estimate.
While the company lowered its short-term expectations, it said that its long-term fundamentals remain strong. The company did, however, cut its forecasts for fiscal year 2001.
For the first quarter of 2001, the company said net sales are expected to increase 3 to 4 percent sequentially. For fiscal year 2001, sales are now expected to increase 35 to 40 percent year over year, with earnings per share for the period expected to be between 23 and 26 cents.
Prior guidance for the fiscal year 2001 was sales growth of approximately 50 percent and earnings per share of between 28 and 30 cents.