|
Warning sinks Sipex stock
|
 |
February 18, 1999: 12:24 p.m. ET
Despite positive earnings report, investors sell on 'caution' about short-term revenue
|
NEW YORK (CNNfn) - Semiconductor firm Sipex Corp. reported fourth-quarter and year-end earnings Thursday that beat the Street by a mile, but its stock fell nearly 50 percent in morning trade as investors grew wary because of the company's warning that it remains "cautious about our short-term revenue outlook."
Shares of the Billerica, Mass.-based company were trading down 10-5/8 at 13-3/16 by late morning, making it one of the day's leading percentage losers.
The maker of analog integrated circuits for, among others, the data communications and telecommunications industries, posted fourth-quarter net income of $7 million, or 37 cents a diluted share, before one-time charges totaling $1.6 million. Analysts polled by research firm First Call expected Sipex (SIPX) to earn 17 cents a share in the quarter.
Besides exceeding expectations by 20 cents per share, the results demonstrated improved performance compared with the year-earlier period, when the company reported earnings of $6 million, or 32 cents a share.
For the year, Sipex earned $19.8 million, or $1.06 per share, up from $13.2 million, or 71 cents a share, in 1997. First Call analysts estimated the company would earn 65 cents per share.
But the company's CEO said in the earnings report that while "1998 was a good year for Sipex Corp. . . . our ability to grow in (the analog) market will be dependent upon a higher level of orders received and shipped in the same quarter than has historically been our experience. The continued uncertainty in the world markets are impacting our customers' ability to predict demand for their products. As a result of these factors, we remain cautious about our short-term revenue outlook." 
|
|
|
|
|
|
Sipex
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
