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News

11 October 2007

 

WJ’s third quarter revenue hit by operational challenges

WJ Communications (WJC) Inc of San Jose, CA, USA, which designs and supplies RF products for the wireless infrastructure and RFID reader markets, says it expects Q3/2007 (ended September 30) revenue to be in the range of $9.7m to $9.9m, according to its preliminary results. Revenue for Q2/2007 was $12.7m, so the latest figures indicate a sequential decline of around 23%.

“While our scheduled business during the third quarter would have resulted in revenue that was within our previously provided guidance range, we experienced several operational challenges during the quarter that contributed to our lower than expected results,” said Bruce Diamond, president and CEO of WJ Communications. “Specifically, we experienced a shortage of lead frames late in the quarter due to several deliveries being rejected upon inspection by our assembly vendor. This issue has since been resolved, and we have resumed our shipment schedules.”

The company added that Q4/2007 revenue is expected to be below analyst estimates and not a material improvement on Q3. According to the financial news website RTT News, analysts had expected WJC to report fourth quarter revenue in the region of $12.97m.

“Looking to the fourth quarter, our current revenue outlook is based on initial indications by our customers that overall demand will be lower than previously expected. Also, it now appears that significant orders related to the TD-SCDMA build-out in China will not materialize until 2008. However, we remain excited about this opportunity and believe it will have a positive impact on our total revenue and financial results next year.”

See related items:

WJ losses prolonged by delayed fab closure and product qualification

WJ completes closure of its GaAs fab

Visit: RTT News

Visit: www.wj.com