Xicor, Inc. (Nasdaq: XICO) tumbled almost 60 percent Tuesday after it announced flat sequential revenue growth and the resignation of its president.
Shares in the memory chip maker plummeted 10 15/16 to 7 7/16
The company said judging by revenue for the first month of the second quarter ending July 2, combined with an analysis of recent bookings, revenue for the second quarter will most likely be flat or lower than during the first quarter. Although it expects the quarter to be profitable, the number will be below analyst expectations.
First Call's consensus of 3 analysts was expecting a loss of 15 cents a share.
"In light of not meeting analyst expectations, Bruce Gray, Xicor's president, resigned," CEO and Chairman Raphael Klein said in a statement. Klein said he has assumed the president's duties, in addition to his current ones.
Total bookings have increased during the year, but so far this quarter the percentage of bookings for same quarter shipments has been lower than projected, Klein said.
Two key customers also requested the company to delay its shipments to them.
Klein said he remained confident in Xicor's future prospects based on progress with its outsourcing programs and new product development. The company is placing significant emphasis on its new C7 products, including a substantial increase in the related production capacity.
Xicor's competitors include Atmel (Nasdaq: ATML), STMicroelectronics (NYSE: STM) and Fairchild Semiconductor (NYSE: FCS) , according to Hoover's Online.