SAN FRANCISCOCiting the increasing effect of the global financial crisis, IP vendor Virage Logic Corp. Tuesday (Dec. 30) lowered revenue and earnings guidance for the company's fiscal first quarter, which ends Dec. 31.
Virage (Fremont, California) said it now expects revenue for the quarter to be between $11 million and $11.5 million, down from a previous estimate of $15.5 million to $16 million. The company now expects to report a non-GAAP loss of 6 to 8 cents per share, after previously saying it expected a non-GAAP profit of 2 to 4 cents per share for the quarter.
In a statement, Executive Chairman J. Daniel McCranie said the impact of the financial crisis on the semiconductor industry is unprecedented. "The last few weeks of our fiscal first quarter have been equally challenging for us as we manage recent delays in customer orders," he said.
McCranie added that Virage is encouraged by the long term prospects it sees for the company's product portfolio.
"Even in a severe downturn, semiconductor manufacturers will not typically allow their design cycles to abate and given our longstanding strategic relationships with many of the largest foundries and integrated device manufacturers, we believe we will continue to see growing demand for our leading-edge products," McCranie said.
Virage joins dozens of companies in the semiconductor industry that have cut quarterly financial targets amid a deepening industry downturn. Earlier this month, Virage pulled a $10 million bid to acquire LogicVision Inc. The bid had been rejected by LogicVision's board of directors.