Feeds

Philips short of analysts' expectations

Blames US slowdown, like everyone else

  • alert
  • submit to reddit

Intelligent flash storage arrays

Philips is the latest technology company to announced a disappointing Q4 last year. Despite reporting a 46 per cent rise in income, the figure of $744.7 million still missed analysts' expectations.

The company had been expected to report income of between $797.95 million and $1.082 billion for the quarter.

The electronics manufacturer blamed the slowdown on lower demand for computer chips, and said that the trend would continue into the first quarter of 2001. It predicted a 15 per cent fall off in chip sales in this quarter compared to Q4 last year.

The industry as a whole is certainly struggling, and most companies are pointing the finger at the cooling US economy. As Americans keep a closer eye on their cash, demand for semiconductor based products has dropped.

However, unsurprisingly, Philips was keen to play down the missed targets, and talk about performance throughout 2000, saying it was a record year.

It said it is raising its targets for 2001, and is aiming to grow sales another ten per cent. It would not be drawn to make a forecast for the year in general, saying it was being more cautious this year.

Steven Vrolijk, an ING Barings analyst in Amsterdam, commented: "The outlook on the semiconductor sector is disappointing."

He told Bloomberg that his forecast of five percent net profit growth for Philips over the next year, was unchanged. "This morning's figures don't point to any drastic change in that outlook. Five percent growth is not very impressive for a group like Philips," he said. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?