General Semiconductor Updates Outlook for First-Quarter 2001
General Semiconductor Inc. (Melville, NY) has updated its business outlook for the first quarter of 2001. The company reports that, as a result of the continued slowdown in customers' markets and excess inventory still in the channels, first quarter revenues are expected to be 14 to 16 percent below the $119.9 million reported in the previous quarter. Diluted earnings per share for the first quarter are expected to be in the range of $0.12 to $0.14, before approximately $14.0 million in one-time charges associated with the restructuring announced on February 7, 2001.
“Our customer base continues to be affected by the broad-based economic slowdown," stated Robert J. Gange, senior vice president and CFO. “As a result, the increase in order rates we projected for late February and early March have not materialized and we now expect first quarter results to be lower than our earlier guidance."
Ronald A. Ostertag, Chairman and CEO commented, “Although the current weak market conditions have hindered our short term earnings outlook, we continue to invest in new product development. We believe these investments, combined with the cost reduction initiatives announced on February 7, put the company in an excellent position for long-term growth."
General Semiconductor plans to furnish an updated outlook for the second quarter of 2001 and the balance of the year when it releases first quarter earnings on April 19, 2001.