Dii Group Inc, the Colorado-based microelectronics design and manufacturing services group, warned on Friday that its results would struggle to match market expectations for at least the next six months, forcing its stock down by 16% to close at $15.0. The announcement cited falling orders from major printed circuit board clients within the PC industry, combined with a more general perception of a market-wide softening in demand for the electronics industry. The news provides further confirmation of the PC industry’s continuing inventory problems and sluggish demand. Dii’s Multek subsidiary, which sells $200m of PC and related printed circuit boards annually, said three of its biggest PC customers had simultaneously delayed substantial orders, but declined to say who these customers were. Dii’s net profits for the second quarter to June 30 are now likely to fall to around $6m from previous market estimates of $10m, with a small sequential improvement expected in the third quarter, the company said. Revenues for the second quarter are likely to be flat at around $230m, a spokesperson said. Dii has grown revenues by over 50% per annum for the last five years, but revenues dropped by 4% sequentially in the first three months of this year, and Dii announced a $38m restructuring charge at its Orbit Semiconductor subsidiary which dragged the group heavily into the red.
