I continue watching company news releases for air pockets, companies that aren’t just seeing revenues go lower on a glide path, but are seeing a complete disappearance of their core business. Today’s example: Wolfson.
Wolfson Microelectronics (Edinburgh, Scotland) (OTC:WLFMF) has again slashed its fourth-quarter revenue forecasts, warning revenues would be down to almost half their level a month ago.
Earlier this month, it signalled a first warning for its fourth quarter.
Wolfson released third quarter results Monday (October 27) showing pre-tax profits in the quarter " crucial because it includes pre-Christmas sales " down to $8.3 million, from $14.7 million in the corresponding quarter of 2007.
Revenue for the quarter fell to $60.5 million from $70.4 million last year.
Wolfson said that since the trading update on 2 October, the market environment has continued to weaken and it had experienced a further "broad based deterioration in order intake and rescheduling of orders."
The company now expects fourth-quarter revenues to be between $35 million and $45 million. Earlier this month, it said it expected fourth-quarter revenues of $45 million to $50 million. Market expectations before that had been for revenues in the three months of around $60 million.