6/21/2002 - Oak Technology, Inc. (Nasdaq: OAKT), a leading provider of embedded software and semiconductor solutions for the optical storage and digital imaging markets, announced that due to a slower-than-anticipated global PC environment, particularly in Europe, the Company expects revenues for the fourth fiscal quarter ending June 30, 2002 to decline sequentially. Rather than the Company's previous business outlook of revenues up slightly from last quarter's $42 million, Oak now anticipates reporting revenues for the fourth fiscal quarter of 2002 in a range of $34 to $36 million, and a fourth fiscal quarter pro forma net loss in the range of ($0.05) to ($0.09) per share (which includes estimated inventory reserves, but excludes restructuring charges, certain legal expenses and amortization of intangibles).
Global market conditions are resulting in deferrals of certain customer orders and lower than normal turns in the Company's business. In addition, the Company believes uncertainty in the distribution channel caused by PC-OEM manufacturers has contributed to the industry-wide softness and short-term inventory build up. In response to these market forces, Oak is further tightening cost controls, deferring normal annual salary increases for six months and providing for certain restructuring activities.
Although it now appears that the market for PC products in the near term will be less robust than anticipated, Oak continues to expect the second half of the calendar year to be stronger than the first half. Oak will further detail its business outlook when the Company reports its final fiscal fourth-quarter results on July 23, 2002.
The expected financial results for Oak's fourth fiscal quarter contained in this announcement are preliminary, based on the best information currently available to the Company, and are subject to the closing of its financial books and customary quarterly review procedures with its independent auditors.
About Oak Technology
Oak Technology, Inc., a leading provider of solutions for the storage, capture and sharing of digital content, is committed to driving the emerging world of connected information appliances. The Company's fully integrated products and technologies target two key markets: optical storage (CD-RW and DVD for PC and consumer) and digital imaging (advanced copiers, printers, faxes, scanners, MFPs and iAppliances). Founded in 1987, Oak is headquartered in Sunnyvale, California, and has sales offices, design centers and research facilities around the world. The Company trades on the Nasdaq Stock Exchange under the symbol OAKT. Additional information about Oak and its digital solutions can be found at www.oaktech.com
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