Not a tough period?
Stec continues to see inventory impa
BANGALORE, Feb 23 (Reuters) – Stec Inc, which makes flash memory storage products, posted quarterly earnings in line with estimates, but an inventory overhang at its top customer EMC Corp dampened first-quarter forecast and sent the company’s shares down 30 percent in extended trade.
Stec, which makes the new solid-state drive optical media format, said it expects the first half of 2010 to be a tough period as the inventory carryover at EMC is expected to continue to hurt sales to that company during the period.
Your story has a significant typo in it. You state: “STEC said it expects the first half of 2010 to be a tough period for its business…”
But you misread STEC’s Press release in which they said it will be a “TROUGH” period. There is a big difference between “Tough” and “Trough.” We believe that to be substantially misrepresenting the company’s words as more negative than they really are.
Please re-read STEC’s earnings press release and correct the article.
We corrected: GBU Editor