Intel distributor Eurodis Electron has reported worse than expected year end results to 31 May, as the company joins the long list of casualties of the troubled European semiconductor market.
The distributor?s below-par performance is part of a recent trend that has filtered down from Intel to its European distribution channel.
Eurodis saw pre-tax profits drop by a massive 83.2 per cent to #3 million, from #17.96 million in the previous financial year, on turnover that remained more or less static at #298 million. This figure excludes a one-off charge of #2.3 million from the disposal of discontinued operations.
The distributor attributed its lacklustre performance to the fact that worldwide supplies of semiconductors are continually outstripping demand. Eurodis chairman Robert Leigh said: ?The electronic component market has been difficult during this period.
?The upturn which many in the industry are predicting remains stubbornly elusive.?
Intel issued a profit warning last month (PC Dealer, 4 June), blaming slow demand for its microprocessors, particularly in Europe. As a direct result of the profit warning, Intel distributors such as Eurodis and Datrontech were also forced to issue warnings, in April and May respectively.
Eurodis? warning was the second in six months after the initial warning for its interim results in November 1996.
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