Photon Dynamics Sees Shortfall
Photon Dynamics (PHTN) slashed fourth-quarter guidance, citing an inventory glut in the liquid crystal display television screen business.
The San Jose, Calif., supplier of integrated yield management solutions for the flat panel display market made $4.2 million, or 25 cents a share, for the quarter ended June 30, reversing the year-ago loss of $3.6 million, or 21 cents a share. Revenue rose to $51.7 million from $39.1 million a year earlier.
The latest quarter eased past the Thomson Financial analyst consensus estimate, which called for a 23-cent profit on sales of $49.4 million. But citing "lower than anticipated bookings for the next several quarters," the company said it expects to lose around 20 cents a share for the fourth quarter on revenue of about $32.5 million. Analysts were looking for a 15-cent profit on sales of $45 million.
"Recently, many of our customers have suffered from reduced profitability and cash flow as a result of oversupply in a seasonally slow marketplace for LCD products," said CEO Jeff Hawthorne. "While we believe this situation to be temporary because we are still early in the adoption phase for LCD televisions, our customers have delayed several investment decisions for the coming months."The company's comments came a day after an inventory glut in the LCD business felled glass giant Corning (GLW). "The company is prudently cutting back on discretionary and variable spending at the same time it is continuing to invest aggressively in future products," Hawthorne said. "If market conditions improve and our customers decide to re-accelerate their investments, Photon Dynamics is well-positioned to respond quickly." Shares fell 40 cents during regular trading Wednesday, coming with 15 cents of a 52-week low, before being halted in postclose acton at $11.10.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV