MANHASSET, N.Y. Mindspeed Technologies Inc. (Newport Beach, Calif.) 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