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To: Johnny Canuck who wrote (37434)	6/26/2002 9:04:29 AM
From: Johnny Canuck	Respond to of 70587

Cirrus Logic sees lower 1st-qtr revenue due to Xbox Tuesday June 25, 8:48 pm Eastern Time Reuters Company News (Adds details, background, stock price) AUSTIN, Tex, June 25 (Reuters) - Cirrus Logic Inc. (NasdaqNM:CRUS - News), which makes a component used in Microsoft Corp's video game console Xbox, said on Tuesday its fiscal first-quarter revenue will fall short of its earlier forecasts, due to lower demand by customer Thomson Multimedia. ADVERTISEMENT The chipmaker makes an optical controller for DVD systems that it sells to Thomson Multimedia, which builds the DVD systems and sells them to Flextronics International Ltd. (NasdaqNM:FLEX - News), which manufactures the Xbox. Cirrus, based in Austin, Texas, said it now sees revenue for the first quarter ending June 29 of $74 million to $77 million, compared with its May. 1 guidance of $87 million to $88 million. The Xbox had gotten off to a slow start in Europe when it was launched March 14, but sales picked up once Microsoft cut prices in late April, in some cases coming close to 40 percent. The company said in a statement that its pro forma loss per share is expected to be between 8 cents and 10 cents, within its original range for a loss of 6 cents to 10 cents a share. Analysts had forecast Cirrus to post a loss of 8 cents a share, within a range of a loss of 7 cents to 9 cents, on revenue of $88 million, according to Thomson First Call. The company said that, excluding the impact of Xbox, it expects double-digit sequential growth in its business, said Chief Executive David French in a statement. The company also said that it sees first-quarter gross margin of about 50 percent and pro forma operating expenses at $47 million to $48 million, slightly down from earlier estimates as it cuts costs. It expects to report a pro forma loss per share in the September quarter of 6 cents to 10 cents, despite expected lower Xbox revenues, on revenues that are little changed from the newly forecasted first-quarter levels. Shares of Cirrus Logic rose 33 cents, or 5.3 percent to $6.54 on Nasdaq, before the announcement, which came after the close of regular U.S. trading. The stock has fallen 53 percent this year.