Stymied by continuing passive component shortages and the subsequent delays in shipping products to customers, Artesyn Technologies Inc., Boca Raton, Fla, lowered revenue and earnings expectations for the fourth quarter ending December 29.
"The recent postponements of Q4 shipments by several customers is isolated and expected to abate by the end of the first quarter", said Joseph O'Donnell, Artesyn's president and chief executive. "We are more concerned with continued supply disruptions by passive component vendors as it impacts shipments to customers through the second quarter of 2001."
Revenue is anticipated to be between $170 to $180 million, 6 to 11% below current Wall Street consensus expectations. Cash earnings per share is expected to fall to approximately 22 to 25 cents per diluted share, compared to the consensus forecast of 39 cemts per diluted share. This is due to lower sales, manufacturing inefficiencies associated with component supply disruptions, and material premiums incurred to achieve critical customer shipment dates.
Barring a general economic slowdown, revenue growth is expected to be approximately 15% in the first half of 2001 compared to the same periods in 2000. New product introductions and improved supply chain performance in the second half of 2001 should result in approximately 20% revenue growth for the year??, said O'Donnell.