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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: BillyG who wrote (29975)	2/26/1998 7:01:00 PM
From: John Rieman	Read Replies (2) \| Respond to of 50808

VLSI pre-announces. Asian woos. Cube might move down tomorrow too.......................................... VLSI Technology Foresees Reduced Earnings in First Quarter Business Wire - February 26, 1998 18:41 %VLSI-TECHNOLOGY VLSI %CALIFORNIA %COMPUTERS %ELECTRONICS %COMED %TELECOMMUNICATIONS %INTERACTIVE %MULTIMEDIA %INTERNET %EARNINGS %VLSIFX V%BW P%BW ------------------------------------------------------------------------ SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 26, 1998--VLSI Technology, Inc. (NASDAQ:VLSI) today announced that revenues and earnings per share for the company's first fiscal quarter ending March 27, 1998 are expected to be significantly below analysts' current expectations. The company expects revenues and earnings for the first quarter to decline from the first fiscal quarter of 1997 ended March 28, 1997 as well as from the fourth fiscal quarter of fiscal year 1997 ended December 27, 1997. Orders and shipments for the company's products have slowed in the current quarter primarily in wireless communications and consumer entertainment due to the cyclicality of these consumer-oriented markets, the business uncertainties associated with the current economic situation in the Asia-Pacific region, and inventory adjustments underway at a range of customers. The company expects to see shipments return to more normal levels during the second half of the year. In the meantime, the company is reviewing and implementing a broad set of programs to stimulate revenue growth and control expenses. Certain statements in this press release are forward looking. Actual results could differ materially. Among the factors that could cause actual results to differ are the following: slowing growth or decline in the demand for the company's semiconductors; product pricing pressures and the impact of competitive forces; loss of one or more major customers, particularly in the communications market; failure to develop and introduce new products in a timely manner; lower factory utilization and excess capacity leading to unfavorable gross margins; and unanticipated problems experienced in ramping up production of a new process or facility. For a more detailed discussion of these and other risk factors, see the company's SEC reports, including but not limited to the Annual Report on Form 10-K for the year ended December 27, 1996 and the Quarterly Report on Form 10Q for the third quarter ended September 26, 1997. The Company disclaims any duty to update the forward-looking statements contained herein, except as may be required by law. About VLSI Technology, Inc. VLSI Technology, Inc. designs and manufactures System-Level Silicon(tm) integrated circuits based on its FSB(tm) functional system blocks(tm) library. Targeting its offerings toward the wireless communications, networking, consumer digital entertainment and computing markets, the company offers its customers advanced system-level integration capabilities. The company is based in San Jose, California, with 1997 revenues from continuing operations of $712.7 million, and approximately 2,600 employees worldwide. Visit VLSI's homepage at vlsi.com. FSB, functional system blocks, and System-Level Silicon are trademarks of VLSI Technology, Inc. All other brand or product names are trademarks and/or registered trademarks of their respective owners. CONTACT: VLSI Technology, Inc. Bala Iyer, 408/434-3073 (Financial Inquiries) bala.iyer@sanjose.vlsi.com Alan Markow, 408/474-5409 (Media Inquiries) alan.markow@sanjose.vlsi.com