WOBURN, Mass.--Alpha Industries Inc. today lowered its forecast for revenues in the current fiscal quarter to $28 million and it predicted an adjusted net loss of $0.11-to-$0.13 per share because unexpected weakness in wireless infrastructure markets and delays in orders for radio-frequency (RF) semiconductors used in handsets.
The Woburn-based company said it now expects revenues to sequentially drop 15% from $33 million in the prior quarter. Two months ago, Alpha had predicted revenues would be sequentially flat in its fiscal fourth quarter, which ends March 31. Its prior guidance was for an adjusted net loss of $0.04 per share.
Alpha said its new guidance for an adjusted net loss excludes transaction expenses related to its pending merger with the wireless business of Conexant Systems Inc. (see Dec. 17 story). The estimate also excludes one-time costs associated with Alpha's planned $7 million acquisition of Aimta Inc., a developer of low-temperature co-fired ceramics (LTCC) for multi-chip modules in handsets (see March 15 story).
"Entering the March quarter we expected the ramp of new module products and a strong turns business to offset traditional seasonal weakness," said David Aldrich, president and CEO of Alpha. "As a result of wireless infrastructure weakness coupled with order push-outs from a key handset OEM, we are revising our expectations for the quarter."
"Within the wireless infrastructure segment, our base station customers continued to struggle as a result of carrier capital expenditure tightening," Aldrich said. "In our wireless handset business, two orders which we expected to ship at the back-end of the quarter have been rescheduled. Nevertheless, these secured design wins will ramp in the coming months."
Alpha is scheduled to release its full results for the fiscal quarter on April 30.