March 15, 2020 / 9:20 PM / 13 days ago

BRIEF-Wellington Drive Technologies Says Experiencing Impact From Component Supply & Customer Demand Uncertainty

March 16 (Reuters) - Wellington Drive Technologies Ltd :

* IS CONTINUING TO EXPERIENCE SOME IMPACT FROM BOTH COMPONENT SUPPLY AND UNCERTAINTY IN CUSTOMER DEMAND

* UPDATES ON COVID-19

* FULLY PREPARED IN MANAGING OPERATIONS REMOTELY SHOULD MAIN OFFICES IN NEW ZEALAND AND MEXICO BE DISRUPTED

* 2020 FORECAST SALES ABOUT NZ$65 MILLION

* CO HAS IMPLEMENTED 4-WEEK INTERNATIONAL TRAVEL BAN, OFFICE VISIT RESTRICTIONS & STAFF SELF-QUARANTINE PROCEDURES

* WELLINGTON DRIVE TECHNOLOGIES SEES LONGER PERIOD BEFORE NORMAL PRODUCTION, SHIPPING PATTERNS; Q2-END INTO Q3 LIKELY FOR SOME DEGREE OF NORMALISATION

* POTENTIAL VOLATILITY AROUND 2020 FORECAST OUTLOOK IS HIGH

* SEES POTENTIAL RISK TO REVENUE REMAINS AROUND ABOUT US$3.6M THROUGH Q1 AND Q2

* DOES NOT EXPECT ALL DELAYED SUPPLY WILL BE PERISHABLE, SO SOME CATCH UP LATER IN Q2 AND INTO Q3 IS POSSIBLE

* IF NECESSARY, CO CAN DEFER PLANNED INCREMENTAL GROWTH SPENDING, WHICH MAY MITIGATE IMPACT ON FORECAST 2020 EARNINGS

* REITERATES DOES NOT EXPECT ALL OF DELAYED SUPPLY TO BE PERISHABLE, SO SOME CATCH UP IN Q2 & Q3 IS POSSIBLE Source text for Eikon: Further company coverage: (Reuters.Briefs@thomsonreuters.com)

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