Power Integrations Inc. (San Jose, CA), a leader in power conversion semiconductor technology, updated its financial outlook for the quarter ending September 30, 2004. The company expects net revenues for the third quarter to be 7% to 9% less than the $35.9 million reported in the second quarter of 2004.
The company had announced previously that it expected net revenues in the third quarter to increase between 6% and 12% from the prior quarter. The previous guidance had reflected a softening of demand in June that persisted into July, with the expectation of normal seasonal demand resuming in August and September. Orders in August did strengthen to a level consistent with these expectations. However, September orders, including turns orders for the month, have declined significantly from August levels. At the current rate of turns orders, September revenues are expected to be less than August revenues.
The company expects gross margin for the third quarter to be approximately 48%, up from 46% in the second quarter and in line with prior guidance. Operating expenses for the third quarter are expected to increase by 2% to 3% compared to the second quarter, also in line with prior guidance. The company expects earnings per share for the third quarter to be between $0.16 and $0.17, compared to the previous guidance of $0.18 to $0.21.
