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To: 2MAR$ who wrote (69)	6/13/2001 10:41:39 PM
From: 2MAR$	Respond to of 208838

SSTI warns on earnings, output cuts SUNNYVALE, Calif., June 13 (Reuters) - Silicon Storage Technology Inc.(NasdaqNM:SSTI - news), which makes memory products for computers, said on Wednesday its second-quarter earnings will fall short of expectations due to excess inventory and a slowdown in new orders, adding that it will slash production. The Sunnyvale, California-based company, which in February warned of weakness in 2001 results, said it now expects second-quarter earnings between breakeven and three cents per share. Revenue for the period will come in at about $60-$68 million, SST said, which would be sharply below the $86 million it reported in the first quarter. Analysts had been expecting the company to earn between 2 cents and 7 cents per share, with a consensus expectation of 6 cents per share, according to research firm Thomson Financial/First Call. SST said it was working with its manufacturing partners to ``drastically reduce'' its wafer production rate in reaction to sluggish sales during the second quarter. SST shares finished off 15 cents at $10.67 on the Nasdaq Wednesday. The stock has a 52-week high of $38.90 and a 52-week low of $5.84.