VLSI Technology warned investors Thursday that its revenues and earnings for the fiscal quarter ending March 27 are expected to be significantly below Wall Street's expectations.
Wall Street was expecting VLSI to report first quarter earnings of 32 cents a share.
The San Jose, Calif., chip maker said it now anticipates its first fiscal quarter revenues and earnings to be below results from the same period last year as well as the fiscal fourth quarter, ended Dec. 27. In the last fiscal quarter, VLSI reported revenues of $174 million and a net income of $22 million. In the first quarter of the company's fiscal 1997 year, VLSI reported sales of $177.7 million and a net income of $9 million.
VLSI blamed its expected lower revenues and profits on a slowdown in orders and shipments of products, primarily in wireless communications and consumer entertainment markets because of the cyclicality of these business segments as well as uncertainties linked to the Asian financial crisis. The company also said inventory adjustments were underway at a number of its customers.
The company said it expects to see product shipments return to "more normal levels" in the second half of the year. While it's waiting for the market to recover, VLSI said it plans to introduce new programs to spur growth and control costs.