Vitesse Semiconductor (Nasdaq: VTSS) wasup US$1.11 at $38.92 in early trading Monday, even after the Camarillo,California-based company joined the parade of high-tech companies warning ofweak quarterly results.
Vitesse said it is cutting its estimates of revenue and pro forma earningsfor the second quarter ending in March because of “continued weakness in itscommunications and data storage applications.”
Revenue for the quarter will likely total $150 million to $160 million,rather than the originally estimated $180 million to $190 million, while proforma income will total 21 to 22 cents per share, instead of the previouslyexpected 26 to 27 cents.
“After completing our end-of-February review, we decided that due to thecontinuing loss of visibility among our communications customers and theunexpected decline in our storage applications, we no longer had confidencethat our forecasted turns business would materialize,” said president andchief executive officer Lou Tomasetta.
“We continue to see strong growth inour network processor, switch fabric and OC192 module accounts and believethese areas are softening the blow of the major downturn that has beenreported by nearly all the communication IC suppliers,” Tomasetta added.
Vitesse designs and supplies semiconductors to makers of optical networkingcommunications equipment. The company has fabrication plants in Camarillo, and Colorado Springs, Colorado.
For the first quarter ended December 31st, Vitesse reported revenue of $165.1million, up 85 percent from a year earlier. Income before goodwill anddeferred compensation rose to $47.6 million, or 25 cents per share, from$20.4 million, or 11 cents.
Vitesse said that it was able to post gainsdespite a slowdown in business at some of its larger customers.