IDT, the communications semiconductor vendor, has warned that sales in its third quarter will be less than it had previously expected.
For the three months to the end of December the company expects revenues to be between 15% and 20% on the previous quarter's $97.1m.
Jerry Taylor, CEO, said: "This is the second quarter in which we have seen weak business conditions in Europe and Japan disrupt our business outlook. The effect on our current quarter revenue from weakness in Europe and Japan and ongoing customer inventory reduction programmes, particularly at North American OEMs and EMS customers, has been more significant than previously projected."
But he added he was encouraged by talk about stabilising conditions in some end markets, and that bookings are running ahead of the previous quarter.