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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (43473)	3/11/2001 10:55:34 AM
From: Proud_Infidel	Respond to of 70976

Alliance Semi sees sales cut up to half this quarter (UPDATE: adds details, background, share price) SANTA CLARA, Calif., March 9 (Reuters) - Alliance Semiconductor Corp. (NasdaqNM:ALSC - news) sales will fall by up to half this quarter from three months ago as customers hit by economic weakness cancel and cut back orders, the company said on Friday. Alliance, which makes the most widely used types of memory, SRAM and DRAM, joined a host of microchip makers including Intel Corp. (NasdaqNM:INTC - news) who this week ratcheted down expectations due to economic trouble. Revenue for the fourth quarter ending March 31 would be 45 percent to 50 percent below the third-quarter's $63.8 million, Santa Clara, Calif.-based Alliance said. Analysts had expected $53-55 million, a spokesman added. ``We continue to see weak demand and order cancellation during the current quarter for both DRAM and SRAM products due to the slowing economy and build-up in inventories at OEMs,'' the factories which make many computers, President and Chief Executive N.D. Reddy said in a statement. ``It's difficult to predict future demand at this time given the current market environment,'' said Reddy. ``As we indicated previously, we have taken steps, starting last quarter, to reduce inventories to meet current and expected future demand and have also taken steps to control expenditures.'' Alliance shares, which had dropped $1/2 to $12-7/16 on Nasdaq during the day and before the warning, fell to $12-1/4 on Instinet after hours. Intel sees its first-quarter revenue dropping 25 percent from the fourth quarter, citing higher than normal inventories for older flash memory, in part. Roughly 55 percent of Alliance sales are DRAM and 45 percent SRAM, and it makes a small amount of flash memory, a spokesman said.