Hit hard by the inventory correction, capacitor maker Kemet Corp., Greenville, S.C., reported today that its fiscal first quarter revenue was cut by more than half.
Revenue dropped 54% to $152.7 million for the June 2001 quarter from $329.2 million for the June 2000 quarter. Revenue decreased 55% sequentially from the $338 million reported for the March 2001 quarter.
Net income in the June 2001 quarter of $13.1 million, or 15 cents per diluted share, was down 87% from $80.2 million, or 90 cents per diluted share, in the June 2000 quarter, and down sequentially from $78.4 million, or 90 cents per diluted share, reported in the March 2001 quarter.
Analysts had told Thomson Financial/First Call they expected earnings between 10 cents and 15 cents a share, resulting in a consensus estimate of 14 cents.
"In the June 2001 quarter, Kemet's shipments were impacted by the electronics industry inventory correction, which is more rapid and pronounced than any previous correction in my 42 years in this industry," said David Maguire, chairman and chief executive of Kemet, in a statement.
"Most of our customers continue to report that they have poor visibility regarding their future shipments, but we are encouraged by the fact that the closely tracked domestic capacitor inventories of our distributors declined 18% during the June quarter."
Kemet's current estimate, given the high level of economic uncertainty, is that revenue for the September 2001 quarter may be down 10% to 15% from the June 2001 quarter, and net income will be positive.