Rockwell second quarter slump

Rockwell second quarter slump
Tom Foremski
Rockwell International is the latest US electronics firm to warn of lower earnings, as its chip modem business slows, leading to an expected second fiscal quarter 25 percent lower than for the same period last year.
The company said it would take a $10m charge to reorganise its semiconductor business in response to weak demand for the 56kbit/s modem chips. Rockwell CEO Don Davis said that customers delayed modem purchases in January and February, waiting for the new V.90 standard modems.
Davis also said that its V.90 chips are under strong pricing pressure and he does not expect the company’s semiconductor business to recover in the second half of its fiscal year to the same extent as earlier predictions.


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