Diamond Multimedia Systems Inc announced yesterday it was expecting lower-than-expected revenues for its second fiscal quarter, ending June 30, resulting in net losses for the period. For the same quarter last year, the San Jose, California-based company reported net income up 45.6% at $7.8m, on revenue up 99.6% at $95.1m, with net earnings per share up 15.4% at $0.03. According to CEO William J Schroeder, the dip in profits has been caused by a number of factors, including, price declines in the graphics and modem markets, lower demand levels in the PC market generally – particularly in Europe. For the first quarter of 1996, the company reported net income of $11.2m, on revenue of $87.6m and net earnings per share of $0.32.
