NewsPMC-Sierra slashes 3Q revenue guidance; shares dip
09/26/06 - newratings.com
NEW YORK, September 26 (newratings.com) – Shares of PMC-Sierra Inc (PMCS) slumped by as much as 10% in after market trading on Monday after the semiconductor maker slashed its revenue outlook for the third quarter on account of weakening customer demand for its communications products.
The Santa Clara, California-based company now expects revenues for the quarter ending October 1 in the range of $114-$116 million, as compared to its previous forecast of $122-$124 million. PMC-Sierra cited lower business activity in the communications area, particularly in Asia, for the shortfall in revenues. The performance of the company's enterprise storage continues to improve. PMC-Sierra said its operating expenses for the quarter would total $60 million or less, as compared to earlier cost projection of $62.5-$63.5 million. In addition, the company projected operating expense savings of roughly $1.5-$1.7 million in the fourth quarter of 2006 due to the recently-announced job cuts at its Ottawa and Portland sites.