MANHASSET, N.Y. Image processing chip supplier Genesis Microchip Inc. announced Thursday (March 30) it expects fiscal fourth 2006 quarter sales to top off at $60 to $61 million, slightly below the previously guided range of $62 to $67 million.
In addition, the company expects gross margin to be 43 percent, down from previous guidance of 46 to 48 percent. GAAP operating expenses are slated to be within the previously guided range of $26.5 to $28.0 million.
Genesis Microchip (San Jose) attributes the revenue shortfall to weaker-than-expected demand for flat-panel television controllers in Europe and for digital CRT TV controllers in China. A contributing factor is lower-than-expected yield on one of the company's newly launched TV controller products.
"As we near the close of our fiscal fourth quarter, we are disappointed that our preliminary financial results indicate revenues and gross margins will be lower than anticipated," said Elie Antoun, president and chief executive of Genesis Microchip, in a statement. "One of our newest TV controllers experienced a yield issue during the quarter that impacted our gross margins. Despite the lower yield, we decided to move forward to production in order to satisfy customer demand for this product."