Beyonics Technology (B19.SG) is off 7.7% at $0.180, its lowest level since July 2009, with over a million shares traded after the contract electronics manufacturer says it expects to report a loss for the its fiscal 2Q ended 31 January “due to a weakening U.S. dollar and continued significantly lower shipments and lower average selling prices to customers in the hard disk drive industry.”
The company released similar guidance before its 1Q FY11 results in December, which showed a net loss of $2.8 million, due to sharply lower shipments to HDD customers, lower capacity utilization, and higher China operating costs, it had a gross margin of 1.4% in the quarter.
With the outlook for the hard drive industry increasingly cloudy, due to falling prices and a crowded competitive landscape, further downside for Beyonics seems likely, with its 2Q results due mid-March a likely catalyst. Orderbook suggests support for the stock is at $0.16.
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