Santa Clara, Calif.--March 19, 1998--Quality Semiconductor, Incannounced that, based on current expectations, it estimates revenue for the second quarter ending March 29, 1998 to be down approximately 10 percent to 15percent from its first quarter's revenue of $18.5 million. Despite thesequential quarterly decline in revenues, however, the companyanticipates that year-over-year revenue growth will exceed 20 percent.
The company believes that the revenue shortfall is due to aweaker demand for the company's networking products and is primarilyattributable to a traditionally slow quarter for networking systems'suppliers, intense competition, and a slowing of demand in the FarEast, particularly in Korea and Japan.
As a result of the lower than anticipated revenue, the companycurrently expects to report a pretax loss of approximately $1.3million to $1.6 million for the second fiscal quarter.
These statements about estimated results are preliminary andbased on currently available information as well as management'sassumptions. The company will announce its results for the secondquarter on April 22, 1998, after the close of the market.
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