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PRI warns on earnings
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September 11, 2000: 11:01 p.m. ET
Semiconductor industry supplier sees 4Q results far below Street forecasts
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NEW YORK (CNNfn) - PRI Automation Inc., a semiconductor system and software supplier, warned on Monday that it expects fourth-quarter earnings results to come in far below Wall Street forecasts due to capacity and supply chain problems.
 PRI, whose announcement caused its shares to lose one third of their value late Monday, said the shortfall means its net income would only come in "slightly above break-even," excluding one-time special charges.
Analysts on average had expected PRI Automation (PRIA: Research, Estimates) to earn 52 cents per share for the period, according to earnings tracker First Call/Thomson Financial. Net income from the same quarter last year was $9.8 million, or 38 cents per share.
Billerica, Mass.-based PRI, whose hardware and software helps the flow of production at semiconductor factories, said it anticipates revenue of about $84 million for the latest quarter ending September 30, down about 6 percent from $88.9 million in the year-ago period.
Shares of PRI Automation ended Monday trading down 94 cents at $42.69, and the stock plunged $14.18, or 33.24 percent, to $28.50 in after-hours trading.
"We are disappointed with the anticipated results," said Mitch Tyson, president and chief executive officer of PRI Automation. "We have identified the areas that need to be fixed and have established the teams to implement the changes and accomplish the turnaround.
PRI attributed the disappointing results to manufacturing, capacity and supply chain problems relating to its TurboSTocker product, which was scheduled to start its high volume production during the quarter.
Despite the lower-than-expected revenue, Tyson said PRI has seen strong demand for their integrated factory automation solutions.
"Even with this setback we expect revenues to grow by 125 percent from fiscal 1999 to 2000, more than double the expected average for the semiconductor capital equipment industry," said Tyson. 
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PRI Automation
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