Hard disk parts provider Komag Inc. (NASDAQ: KOMG) lowered its second quarter guidance on Wednesday, saying market pressures and product transitions have negatively impacted its quarter.
The San Jose, Calif.-based company said that its revenue and operating results will likely be 8 percent to 10 percent lower than the $234 million reported last year. Unit volumes and average selling prices have deteriorated through out the quarter, it said.
Komagâ€™s negative preannouncement with more than a month left in the quarter underscores deteriorating conditions across the hard drive space, Goldman Sachs analyst Marc Kandel told clients this morning.
With conditions unlikely to get better outside of some seasonal lift in the second half, we expect net margins to remain well below recent levels for the remainder of the year.
Analysts polled by Thomson Financial were expecting revenue of $231 million in the second quarter.
Shares of Komag slid $3.54, or 12.85 percent to $24 in mid-day trading.