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Strategies & Market Trends : Guidance and Visibility -- Ignore unavailable to you. Want to Upgrade?

To: $Mogul who wrote (1650)	6/26/2001 6:12:01 PM
From: 2MAR$	Read Replies (1) \| Respond to of 208838

Vitesse Revises Q3 Fiscal 2001 Financial Guidance Business Editors CAMARILLO, Calif.--(BUSINESS WIRE)--June 26, 2001--Vitesse Semiconductor Corporation (NASDAQ:VTSS) ("Vitesse" or the "Company") announced today that due to continued weakness in demand and order cancellations in the quarter, it is reducing its third quarter fiscal 2001 (June 2001) revenue forecast to approximately $60 million and its net income per share (pro forma) to a loss of approximately $0.06 per share. This loss excludes the amortization of goodwill and deferred compensation as well as anticipated restructuring and other charges expected to be recorded in the June quarter as further discussed below. Lou Tomasetta, Vitesse President and CEO, commented, "Overall, business conditions continue to be weak and we have seen no improvement in visibility at a majority of our customers. Inventories in our customers' channels remain at high levels and the process of reducing excess inventories is taking much longer than anticipated. While we have continued to capture many design wins, particularly for our upper-layer products, we do not expect these products to contribute enough revenue in the short-term to compensate for the inventory correction in our mature products." Mr. Tomasetta continued, "In response to this difficult situation, we will continue to seek ways to manage our costs. However, we believe that the headcount reductions implemented earlier in the quarter were adequate and no further reductions are necessary. Over the next few weeks we will consider appropriate charges against certain assets based upon current business conditions. These charges may include, but are not limited to, the impairment of goodwill and other fixed assets, the write down of excess and obsolete inventories, charges related to the recently completed Exbit acquisition, as well as a previously announced restructuring charge for the workforce reduction. "We remain committed in our belief that new products and new design wins remain the most important actions we can take to begin the recovery process," he concluded. Vitesse Semiconductor Corporation is a leading designer and supplier of innovative, high-performance integrated circuits ("ICs") used in next generation networking and optical communications equipment. In concert with its broad communications product portfolio, Vitesse also develops ICs for storage area networking and enclosure management. The Company's products address the needs of Enterprise, Access, Metro, Core, and Optical Transport network equipment manufacturers who demand a robust combination of high speed, high service delivery and low power dissipation in their components. Vitesse is headquartered in Camarillo, Calif., and operates two fabrication facilities; one in Camarillo and one in Colorado Springs, Colo. Company and product information can be found on the Web at www.vitesse.com or is available by calling 800/VITESSE. This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our expected financial results for the three months ending June 30, 2001 and future periods and market acceptance of our products. Our actual results could differ materially from our forward looking statements for a variety of reasons, including, among other things, the amount of revenue completed during the remainder of the current quarter, delays or cancellations of orders by our customers, competition in our markets and difficulties in bringing new products to market. For a more complete discussion of the risks and uncertainties that may cause our actual results to differ materially from our forward looking statements, please read the reports we file from time to time with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended Sept. 30, 2000 and our Quarterly Report on Form 10-Q for the three months ended March 31, 2001. --30--MW/la* RJ/la CONTACT: Vitesse Semiconductor Corporation Eugene F. Hovanec, 805/388-3700