Revenue (year-over-year): $40.8 million, up 6.2%
Net income (year-over-year): $4.2 million, up 16.8%
Soft sales in the distribution channel and a drop-off in shipments of radiation-hardened FPGAs left Actel Corp.'s first-quarter revenue about $3 million below expectations.
"We need to get our high- gate-count products on the table before our growth will ratchet up," said president and chief executive John East, referring to the flash-based ProASIC and SRAM-based RX FPGA lines now in development-which will extend device density to 500,000 gates-and the re-spin of its SX antifuse family.
The parts are expected to begin reaching customers' hands early this summer, but will not contribute significantly to revenue until next year, according to East.
In the meantime, Actel is reducing headcount and trimming "non-critical" projects, East said. In addition, the company is restructuring its engineering organization following the resignation of its vice president of software, he added. -Crista Souza
Arrow Electronics Inc.
Revenue: $2.2 billion, up 8.7%
Net income: $28.3 million, down 32.4%
Arrow blamed the drop in its net income on continuing component overcapacity, weakness in Europe, and sluggish sales within its computer distribution business.
Sales growth within the company's Gates/Arrow computer distribution business slowed to 9%, down from historical levels that had exceeded 20%. And while European operations remained profitable, the Melville, N.Y., distributor noted that business conditions for the region remain weak, and said operating results had not improved over the seasonally low levels of the fourth quarter.
Revenue in Arrow's core North American business increased from both the prior quarter and year, according to Stephen P. Kaufman, chairman and chief executive. But worldwide capacity and supply remain ahead of demand, and pressure on selling prices and margins continue, he said. -Barbara Jorgensen
Revenue: $1.6 billion, up 5.8%
Net Income: $25.7 million, down 36.9%
Avnet threw cold water in the faces of components suppliers-many of which reported lengthening lead times, firming prices, and an order boom in March-with the news that semiconductor and computer sales remain weak four months into 1999. Although conditions showed some improvement, recovery is still several quarters away, said Roy Vallee, chairman and chief executive of Phoenix-based Avnet.
"When you look at the actual lead-time stretch, it is modest," Vallee said.
Components distribution represented sales of $1.2 billion in the quarter ended April 2. Although sales volume was up 15%, ASPs declined slightly, according to Steve Church, president of Avnet's Electronics Marketing Group in North America.
Sales of microprocessors languished as a result of Intel Corp.'s rapid-fire roll outs and subsequent price reductions of high-end Pentium II and III parts, which gave gray-market distributors an edge, Church said. Meanwhile, in the lower-end MPU realm, "we're struggling to get enough parts to meet our customers' demands," he added.
Sales for the Computer Marketing Group, which accounted for $403 million of Avnet's total, rose sequentially and year-over-year. But preoccupation with Y2K issues has slowed customer spending on infrastructure products, Vallee said. -C.S.