Updated from 6:23 p.m. EST
As if the semiconductor industry needed any more profit warnings, chipmakers
all cut their projections after the closing bell tonight.
The announcements ought to make for a swell session for the sector tomorrow. As warnings from components
have hit Wall Street in recent days, the
Philadelphia Stock Exchange Semiconductor Index
has been on a decline, dropping 5.1% today.
Looking ahead, trading on the futures market tonight suggests a weak open for technology stocks tomorrow. In recent action, the
Nasdaq 100 Securities
were down 9 to 1960, about nine points below fair value and suggesting a sluggish start for the Nasdaq tomorrow. At last look, the
was off 0.44% to $48.78 on
Tonight, Altera -- a specialty chipmaker -- cautioned that it expects revenue in its fiscal first quarter to drop 20% from fourth-quarter levels, as a result of an inventory correction and a slowdown in demand. Shares of the semiconductor stock traded down 4.8% to $22.25 on
"An industry-wide inventory correction began in the fourth quarter, and now reduced end-market consumption is exacerbating the impact of that correction," Altera said in a statement. "The slowdown in end-market activity is prolonging the inventory correction, but we believe that moderate sequential revenue growth will resume in the second half."
Separately, Avanex -- a manufacturer of photonic processors that increase the speed and capacity of fiber-optic networks -- scaled back its forecasts for its fiscal third quarter and for fiscal 2001, sending its stock down 20.6% to $19 on Instinet.
After the bell, Avanex lowered its third-quarter profit projection to 2 cents to 3 cents per share, compared to consensus estimates for earnings of 6 cents. For fiscal 2001, the company expects to come in between 15 cents and 16 cents per share, below analysts' target of 25 cents per share.
And finally, Chartered Semiconductor -- a telecommunications chip supplier -- lowered first-quarter earnings and revenue projections, citing weak economic and market conditions. In recent trading, the stock was down 19.4% to $26 on Instinet.
The chipmaker expects first-quarter revenue to fall about 35% below the fourth-quarter's outcome. Previously, Charter had expected a 15% to 20% drop. Additionally, the chipmaker expects to post a loss of 22 cents to 24 cents per share, compared to prior forecasts of a 4- to 6-cent per share profit.
Rivals in the semiconductor sector have been punished on the news. Shares of specialty chipmaker
-- which competes most directly with Altera -- sank 4.5% to $37 on Instinet.
Elsewhere on the electronic trading platform,
shed 2.8% to $43.75,
slid 0.4% to $28.88,
dropped 0.5% to $37.75 and
lowered 0.3% to $29.90.
Among large-cap networking stocks trading on Island ECN tonight,
lowered 0.8% to $23.81,
advanced 0.5% to $27.94 and
lost 1.4% to $62. The
American Stock Exchange Networking Index
finished the regular session down 5.9%.
This information is provided by Instinet, a wholly owned subsidiary of Reuters (RTRSY) . For further information, please contact Instinet at www.instinet.com.
Island ECN offers trading, mainly in Nasdaq-listed stocks, from 7 a.m. to 8 p.m. EST.
explains how the rules change when the sun goes down in Investing Basics: Night Owl, a section devoted to after-hours trading.