SAN JOSE, Calif. ESS Technology Inc. on Thursday (Dec. 30) lowered its forecast for the fourth quarter due to lackluster DVD chip demand.
ESS (Fremont, Calif.) now expects revenue for the fourth quarter to be between $43 million and $45 million, below its earlier guidance of $48 to $52 million. Thomson First Call projects that ESS will post a fourth-quarter loss of 12 cents per share on sales of $49.1 million, according to the Associated Press.
"The December quarter has been affected by the continued slow demand worldwide for video products, primarily for VCD and DVD players, which has resulted in lower than expected revenues in the quarter," said Robert Blair, president and CEO, in a statement.
From 2004 to 2008, IDC expects total DVD semiconductor player and recorder revenue to have a CAGR of 11 percent and to reach nearly $3.7 billion in 2008, according to IDC.
DVD player semiconductor revenue is expected to experience a CAGR of minus 21 percent and to have revenues of $637.8 million in 2008. DVD recorder semiconductor revenue is expected to achieve a CAGR of 39.1 percent and reach $3 billion in 2008, according to the firm (see Dec. 16 story).