Cypress Semiconductor Corp. on Thursday became the latest chip maker to issue a warning about its financial picture in the fourth quarter.
Cypress (stock: CY) said it is reducing its guidance for sequential revenue growth for its fourth quarter ending Dec. 31.
Based on slower sales in a range of end markets, it now anticipates quarter-on-quarter revenue growth of 4 percent to 5 percent.
Analysts also project that the company will earn 76 cents a share for the period.
For the third quarter ending Oct. 1, the company reported sales of $356.2 million, up 83 percent from the like period a year ago.
It also reported a net of $100.5 million, or 70 cents a share in this period, compared to $25.5 million, or 21 cents a share, a year ago.
In the fourth quarter of last year, it reported a profit of $47.5 million, or 39 cents a share, on sales of $207.9 million.
"Bookings are reasonable and should allow us to grow both in revenue and earnings in the first quarter of 2001," said T. J. Rodgers, chief executive at Cypress.
The disclosure by Cypress, San Jose, follows similar announcements made by Altera Corp. (stock: ALTR); Fairchild Semiconductor Intl. (stock: FCS); Mosel Vitelic Corp.; and other chip makers in recent days.
Another concern is that some major OEMs have also lowered their previous forecasts, including Gateway Inc. (stock: GTW) and Lucent Technologies Inc. (stock: LU), among others.
There are other ominous signs in the market. A cooling in the PC market, coupled with an inventory glut with DRAMs and other key components, is prompting analysts to predict that the market is headed for a major slowdown.