Read-Rite Repeats Warnings of Weak Earnings

Read-Rite Corp. said fiscal first-quarter earnings will fall below expectations as a result of weak demand, the second profit warning in less than two months from the maker of recording heads used in computer hard disk drives. The Milpitas-based company blamed the shortfall on “reduced shipments” in the last two weeks of the quarter ended Dec. 28, adding that it will report revenue of about $261 million. Read-Rite said Nov. 7 that net income would fall below the 63 cents a share that analysts then expected the company to earn and that it would take a charge of $30 million related to its older technologies. The company reported that it was hurt by the industry’s shift from thin-film to so-called magneto-resistive technology. Before the second profit warning, Read-Rite was expected to earn 43 cents a share. The company, which will report its first-quarter earnings on Jan. 21, made the announcement after the close of trading. Shares fell 44 cents to close at $17.13 on Nasdaq.