Integrated Silicon Solution joined the warnings parade and said it will miss revenue and earnings targets for the second quarter.
Integrated Silicon Solution (Nasdaq: ISSI) shares were off 7 percent, or down 93 cents to $11.51 ahead of Tuesday's opening bell on the Island ECN. The company makes memory semiconductors used in Internet access devices, networking equipment, telecom and mobile equipment, and computer peripherals for customers like Cisco (Nasdaq: CSCO), Motorola (NYSE: MOT) and others who have been affected by the economic slow-down.
Back in December, the company had raised its projections for its first quarter, which caused a nice rally for the stock since most other chip makers had been issuing profit warnings.
Revenue for the March 2001 quarter is now expected to be about $52 million to $54 million. That's well below First Call's prediction for revenue of $67 million. Though it makes for a year-on-year quarterly growth rate of around 77 percent, it's a sequential decline of 18 percent from last quarter's $65.2 million in revenue.
Earnings are now estimated to be 28 cents to 31 cents per share. First Call had been expecting 47 cents a share. Comparatively this would mean a year-on-year quarterly increase of 110 percent and a sequential decline of 33 percent from December's quarter.
As its peers have also done, the company blamed economic conditions: "like many other companies in our industry, we have recently received order cancellations and order reschedules that have impacted revenue...," said CEO Jimmy Lee in a statement.
The company said it will continue to closely monitor operating expenses, and its cash and liquidity position remains strong with $139 million in cash on its balance sheet at the end of December.