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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (203441)	9/21/2004 2:18:29 PM
From: tejek	Respond to of 1579850

RF Micro Warns on Inventory Woes By Scott Moritz RF Micro Devices cut sales estimates by 10% and warned of a swing into the red as inventory piles up. The cell-phone chipmaker said Tuesday that sales during its fiscal second quarter ending this month will be down sequentially between 8% and 12% from levels in the previous quarter. Citing a drop in orders from Asian phone makers, RF Micro now expects an adjusted net loss to be in the range of a penny to 3 cents, down from a previously projected profit of between 3 cents and 4 cents. Sales in the quarter are expected to come in somewhere between $146 million and $152.5 million, down about 10% from the prior guidance for $166 million in revenue. Though RF Micro saw slack demand across its chip and infrastructure businesses, the company says the shortfall is largely due to short-term inventory adjustments. For the fiscal third quarter ending in December, the company expects sequential revenue growth across all business units. Investors, already expecting a weak quarter, seemed to have been encouraged by the strong guidance for the upcoming quarter when handset sales usually peak. RF Micro shares rose 31 cents, or 5%, to $6.30 in premarket trading Tuesday. Similarly, chip peer PMC-Sierra (PMCS:Nasdaq - news - research) warned Monday and the stock closed up 4%. thestreet.com