California Micro Devices Corp., Milpitas, Calif., said today that it expects revenues for its third fiscal quarter endingDecember 31 to be 8-10% lower than its second quarter revenues of $16.1 million and that earnings would be 10-20% lower than analysts' estimates of 14 cents per share.
"Our revenue has been affected by the widely reported order cancellations and pushouts in the personal computer,
networking, and telecom industries," said Jeffrey Kalb, president and chief executive officer. "These impacts continued through the quarter, with turn-able business being low since the mid- quarter update we provided. We continue to have good success in achieving new design wins, but several programs have been delayed due to market conditions, particularly in the computer area where weak consumer demand has become widespread."
Kalb also said "It is too early to make any predictions about our fourth fiscal quarter ending March 31, 2001, as we seem to be returning to the norm of a couple of years ago where a higher percentage of our sales will be coming from orders received during the quarter. The lead times we are seeing from customers have contracted substantially."
Although sales will be lower than last quarter, gross margins are expected to improve with higher EPS than the prior
quarter, as operational efficiencies improved in the Tempe, Arizona facility. Additionally, results for the third quarter will be substantially better than the year-ago third quarter when the company reported revenues of $11.7 million and earnings per share of 4 cents, the company said.