FOR IMMEDIATE RELEASE CONTACT: TIM IRIS
(631) 847-3169
GENERAL SEMICONDUCTOR UPDATES BUSINESS OUTLOOK
MELVILLE, NY (DECEMBER 13, 2000)--GENERAL SEMICONDUCTOR, INC. (NYSE:SEM), a
leading manufacturer of power management devices, today updated its
business outlook for the fourth quarter and fiscal year 2001. As a result
of recent softness in order trends, including some customer cancellations
and push outs, fourth quarter revenues are expected to be 5 to 7 percent
below third quarter reported revenues of $130.5 million. Diluted earnings
per share for the fourth quarter are expected to be in the range of $.26 to
$.28.
The softness in order trends is a result of an increased level of inventory
at distributors and several OEM customers, due in part to moderating growth
rates in the computer, telecom and automotive end markets. As a result of
this inventory buildup and the normal seasonal weakness resulting from the
Chinese Lunar New Year, revenues for the first quarter of 2001 are expected
to be sequentially flat. Sequential earnings per share for the first
quarter are expected to be flat to 8% lower.
Fiscal year 2001 revenues are expected to increase approximately 14 to 16
percent over 2000, with diluted earnings per share expected to rise by 20
to 25 percent when compared to 2000. New products are expected to account
for 12 to 13 per cent of 2001 revenues compared to 6 percent of 2000
revenues.
"Although 2000 will be a record year for our company, we are disappointed
that we must lower short term expectations for revenues and earnings. Our
continued focus on developing new power management products should sustain
our long term growth prospects" commented Ronald A. Ostertag, Chairman and
Chief Executive Officer. "We believe that the current inventory adjustments
occurring at our major distributors and certain OEM's should begin to ease
in the first quarter of 2001 and we will be back on track for another
record year."
General Semiconductor, Inc. is a market leader in the design, manufacture
and distribution of discrete semiconductor components. The Company provides
customers with a broad array of power management products including
rectifiers, transient voltage suppressors, small signal transistors, diodes
and MOSFETs. Its global customer base includes original equipment
manufacturers, electronic distributors and contract equipment
manufacturers. Key markets for its products include automotive, computers,
consumer and telecommunications equipment.
The information set forth above includes "forward-looking" information and,
accordingly, the cautionary statements contained in Exhibit 99 to the
Company's Form 10-K and Form 10-Q filings with the Securities and Exchange
Commission are incorporated herein by reference. General Semiconductor's
actual results could differ materially from the "forward-looking"
information in this press release.
VISIT GENERAL SEMICONDUCTOR ON THE WEB AT www.gensemi.com
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