HAUPPAUGE, N.Y. Standard Microsystems Corp. (SMSC) late Tuesday (August 16, 2004) lowered its forecast for the second quarter ending August 31.
The chip maker said its sales will be approximately $50 million versus prior company expectations of between $56-to-60 million.
"During the second quarter, SMSC has seen signs of a general slowdown in orders across its businesses with most of the decline occurring in the mobile and desktop I/O product lines," said Steven J. Bilodeau, chairman and CEO, in a statement. "We attribute this to ODMs adjusting their inventories to both shortened lead times and to reflect revised launch schedules of Intel chipsets," he said.
"As a result, we are lowering our revenue guidance for the second quarter and, to a smaller degree, expectations for gross profit," he said. "However, despite this change in expectations, the company's book-to-bill ratio for the period is expected to be positive, indicating that this order slowdown may be a short-term factor and that our business should return to more robust levels in the third quarter."