Analyst James Parmelee says he cut the $12.9 billion fiscal 2002 (Sept.) sales estimate to $12.2 billion, and widened the $0.71 fiscal 2002 loss to a $1.04 loss. For fiscal 2003, he cut the $12.3 billion revenue estimate to $9.4 billion and widened the $0.24 loss to a $0.73 loss.
Parmalee notes that the former fiscal 2003 loss estimate included tax benefits that are no longer included. He says the company cited weakness in all customer segments, especially in North America. He thinks the company's revised quarterly sales breakeven target of $2.5 billion to $3 billion looks high in the context of current sales run rates in the range of $2.2 billion to $2.4 billion. Parmalee reiterates his neutral rating. He cut the $4 target to $1.75.