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Mindspeed cuts guidance on lower China demand

Posted: 04 Oct 2004 ?? ?Print Version ?Bookmark and Share

Keywords:mindspeed technologies? semiconductor solutions? network?

Mindspeed Technologies Inc. announced Tuesday (Sept. 28) it anticipates fourth fiscal 2004 quarter revenues of $26 million to $27 million, down 25 percent from fiscal third-quarter revenue of $35.4 million and compared to previous guidance of flat to 10 percent higher sequential revenue.

Mindspeed expects fiscal fourth-quarter gross margin to be 65 percent and pro forma operating expenses of $31.2 million. As a result, the company anticipates a fourth-quarter pro forma operating loss of $14 million, compared to July guidance of a 10 percent sequential improvement over the third fiscal quarter pro-forma loss of $6 million.

"We believe that roughly two-thirds of the sequential revenue decline in our fourth fiscal quarter is directly attributable to a drop in demand among our customers in China," said Raouf Halim, Mindspeed's chief executive. "As a result of our market share and strong customer relationships in China, our revenues were disproportionately affected this quarter," he said.

Halim attributed the remainder of the revenue decline to a broad-based, global inventory build-up at key customers.

- EE Times

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