Here's the story:
SAN JOSE, Calif., Feb 26 (Reuters) - VLSI Technology Inc said Thursday first
quarter revenues and earnings will be "significantly below" analysts' expectations.
The company said in a statement it expects revenues and earnings for the quarter,
ending March 27, to be lower than the fourth quarter, as well as the year-ago first
quarter.
Analysts had expected the company to report earnings of $0.32 a share for the
first quarter, according to First Call.
In the fourth quarter VLSI posted net income of $22 million, or $0.45 per diluted
share, on revenues of $193 million. In the year-ago first quarter the company
reported net income of $9 million, or $0.19 a share, on revenues of $177.6
million.
VLSI attributed the weak quarter to slowing orders and shipments, primarily in
wireless communications and consumer entertainment due to cyclicality, as well as
uncertainties related to the Asian economic crisis.
The company also said its quarter was hurt by inventory adjustments underway at
a number of customers.
VLSI said it expects shipments to return to more normal levels during the second
half of the year. In the meantime it is reviewing and implementing plans to stimulate
revenue growth and control expenses.
In January, VLSI reiterated that it expected first quarter revenues to be down
sequentially from the fourth quarter, but up modestly versus the year ago first
quarter.
((Los Angeles Newsdesk 213-380-2014))
REUTERS
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