MEMSIC, Inc. (MEMS), a semiconductor solutions provider, on Monday lowered its outlook for the second quarter, hurt by reversal of $2.0 million in revenue from the sale of printed circuit boards that were shipped and sold in the first quarter for use in the Olympic torch.
For the second quarter, the company now expects GAAP loss of $0.06 - $0.07 per share, compared to its previous outlook of a profit of $0.02 - $0.03 per share. On average, three analysts polled by First Call/Thomson Financial project earnings of $0.05 per share for the quarter.
The company also lowered its revenue outlook to $3.6 million from its previous forecast of $5.5 million - $5.6 million. Three analysts, on average, expect the company to report revenues of $6.05 million.
The company said that the problems experienced by MEMSIC's customer, due in part to the recent earthquake in China, prevented the timely commercial introduction of the Olympic torch, and during the second quarter, the customer invoked a clause in its contract with MEMSIC that permitted the customer to suspend the project in the event of a natural disaster such as an earthquake.
MEMSIC's stock closed Monday's regular trading session at $3.01, down 6 cents or 1.95%.
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