CAMARILLO, Calif. -- Vitesse Semiconductor Corp. late Tuesday said it expects to post third-quarter earnings and revenue below analysts' estimates because of order cancellations and continued weak demand.
Vitesse, which makes chips used in telecommunications equipment, said it expects a pro-forma loss of six cents a share on revenue of about $60 million.
The mean estimate of analysts surveyed by Thomson Financial/First Call was for third-quarter earnings of three cents a share and revenue of $93.7 million.
In the year-earlier third quarter, Vitesse (VTSS) earned $32.1 million, or 17 cents a share, before acquisition-related costs and amortization of goodwill, on revenue of $114.1 million.
Vitesse said it will continue to seek ways to manage costs.
In May, the company said it would cut its staff of 1,280 by about 12% by the end of June and planned to take a related third-quarter charge of $1.5 million to $2 million.
Vitesse said Tuesday those job cuts were adequate and that further reductions aren't necessary.
The company plans to consider over the next few weeks appropriate charges based upon current business conditions, which may include the impairment of goodwill and other fixed assets, the write-down of excess and obsolete inventories, charges related to the recently completed Exbit acquisition, as well as the previously announced charge for the work-force reduction.
Vitesse's third-quarter loss estimate excludes amortization of goodwill and deferred compensation, as well as anticipated restructuring and other charges expected to be taken in the third quarter.
Vitesse's lowered outlook comes in the wake of other warnings from fellow communications-chip makers. Applied Micro Circuits Corp. (AMCC) cut its first quarter outlook Monday becuase of continued weakness and demand, and Broadcom Corp. (BRCM), which provides silicon systems, earlier this month lowered its second-quarter revenue expectations.
