LeCroy Corp. lowers fiscal 2007 guidance
Shares of LeCroy Corp. (Nasdaq: LCRY) are sagging following news the maker of oscilloscopes and test and measurement solutions for the design of electronic devices lowered its fiscal 2007 revenue guidance and missed Wall Street’s expectations.
Revenue for the fiscal year ended June 30 will be approximately $152 million, the Chestnut Ridge, N.Y.-based company announced before the opening bell. Four analysts polled by Thomson Financial were calling for revenues of $156.97 million. LeCroy had previously estimated its fiscal year revenue in the range between $155 million and $160 million.
“Distribution effectiveness issues have limited our U.S. and Asia-Pacific performance during the past year,” President and CEO Tom Reslewic said.
LeCroy reported that while fourth-quarter orders of $39 million were close to what was expected, a restructuring of the company’s subsidiary in Japan and changes to its distribution model in that country slowed shipments to $37 million.
According to Reslewic, “LeCroy is restructuring and downsizing its direct operations in Japan, leading to the elimination of a number of positions in the Asia-Pacific area and reducing fixed selling expense in the region.” He concedes that the scope of the changes and their toll on shipments during the final quarter of fiscal 2007 were greater than expected, but maintains that the company is laying the foundation for solid growth in the Japanese market.
LeCroy has combined its direct sales force with that of long-time partner Iwatsu Test Instruments Corp., which is now established as its exclusive oscilloscope distribution channel in the Japanese market.
“The next large opportunity to improve LeCroy’s performance is in Japan,” Reslewic explained.
Looking forward, he expects the changes to positively affect the company’s financial performance in fiscal 2008.
At 2:18 p.m. ET shares were down $0.41, or 4%, to $9.31. The 52-week high of $14.29 was established on July 6, 2006. The 52-week low of $8.20 was set on Mar. 23.
