International Displayworks Warns about the Impact of Chinese New Year (IDWK)

International Displayworks (ticker: IDWK) designs, manufactures, and distributes liquid crystal display (LCD) products worldwide. In an earnings call with analysts yesterday management discussed the expected impact of the Chinese New Year which falls out at the end of January. Extracts:

COO and CFO Jeff Winzeler

The second issue with Q1 is the Chinese new year, which falls on the last week of January. While we've done everything we can to maximize shipments in the first quarter, our dependence on suppliers, shipping agents and customer acceptance, plus the fact that we lose a week of production, will have an effect on Q1 revenue.

....Yes, the Chinese new year definitely has an impact to us, not only to our own production facilities, which obviously are shut down for Chinese new year, but our availability of materials to produce product leading up to Chinese new year, the ability to deliver products to customers because shippers are shut down, Chinese customers not being around to accept product. It's definitely customs, definitely has an impact to what the Q1 revenue number looks like.

Chairman and CEO Tom Lacey

Chinese new year happens to fall in the last week of our last month of this fiscal quarter, and what that means is is we're going to be very, very limited, if not zero production capability during that week. So we kind of lost a week out of the quarter is a way to look at that, point one.

(Quotes are from the CCBN StreetEvents transcript.)

Comments

[Ezra Marbach:]

B. Research:
Thanks for your comment. Would you be interested in sharing what you know about these two companies and writing a post for The China Stock Blog?
Best,
-Ezra

2006 Jan 13 10:03 AM