MANHASSET, N.Y. SST (Silicon Storage Technology) Inc. announced Monday that revenue for the fourth quarter ending December would top out between $102 million and $108 million, compared with previous guidance of $120 million to $130 million.
SST (Sunnyvale, Calif.) attributed the revenue shortfall to lower than expected demand across all segments and decreasing average selling prices caused by industry-wide oversupply and increased competition.
In addition, SST expects to post an inventory charge of $20 million to $25 million for excess inventory and to write certain products down to their current estimated market values. As a result, fourth-quarter gross margin is expected to range from 1 to 3 percent, versus previous guidance of 28 to 32 percent.
SST also expects to record a non-cash charge of $5.5 million stemming from its October acquisition of RF chip supplier G-Plus, related to purchased in-process research and development. Loss per share on a GAAP basis is expected to range from 24 to 28 cents, versus previous guidance of 10 to 12 cents per share earnings.