RED BANK, N.J.-- GlobeSpan Inc. reported revenues of $108.2 million for the first quarter of 2001, an increase of 248.4% a year ago but a decrease of 17.3% from the fourth quarter of 2000.
The supplier of chips for Digital Subscriber Line (DSL) applications said its pro forma net income was $8.9 million, or $0.12 a share, in the quarter, compared to $1.8 million, or $0.03, a year ago.
But the company reported a net loss of $89.2 million in the quarter, compared to a deficit of $22.9 million in the like period a year ago.
"The slowdown in the global telecom equipment market and customer inventory balancing problems resulted in a very challenging first quarter for us as customer requests to reduce and cancel sales orders that began in the middle of the fourth quarter continued through the end of the first quarter and into April," stated Armando Geday, GlobeSpan's President and CEO.
"This slowdown, combined with customer inventory balancing problems and our decision to accelerate our customers' transition to higher density and higher performance product, led us to make the excess and obsolete inventory provisions reflected in our first quarter financial statements," he said. "We believe we have taken the necessary action to address these conditions over the near term without jeopardizing our long-term vision and business strategy."