Sipex Corp., Billerica, Mass., today announced that it expects revenue for the second quarter of 2001 to be approximately $20.5 million, lower than the $22 million to $24 millionpreviously expected.
The decrease is primarily due to the price declines on
some of its telecom products.
"Additionally, after receiving P.O.S. reports (Point of Sales Reports from Distributors) after the quarter end, it is obvious that the current weakness in the economy is having a greater adverse impact than we had anticipated on our distributors' sales of our products."
The analog chip company also expects to incur costs of approximately $2.6 million in the second quarter for the write-down of inventory primarily related to four-inch wafers and the discontinuation of certain commodity products. The company will attempt to
sell the products over the next two quarters; however, the success of that effort is expected to be below cost.
Sipex intends to provide a more detailed press release on its second quarter financial results on July 18.