Shares of LSI Logic
fell more than 13
percent today after the company warned that it expects its third-quarter
earnings to miss Wall Street's already lowered expectations.
First Call's consensus of analysts' estimates had pegged the semiconductor maker's third-quarter earnings at 23 cents a share.
"Less-than-anticipated order input during the first six weeks of the third
quarter is expected to result in 5 percent to 10 percent lower revenues and EPS in
the low-to-mid teens," Wilfred Corrigan, LSI Logic chairman and CEO, said in a statement.
Corrigan pointed to the global slowdown in the semiconductor industry as the main reason for LSI's shortfall.
"[The slowdown] is now completing its third year," he said. "We
expect supply and demand to come together in the next 12 months."
In July, when LSI announced its second-quarter earnings of $330 million, or 23
cents per share, it also warned that its earnings for the third quarter would be flat
The company said the third-quarter warning does not take into account one-time charges associated with its acquisition of Symbios Logic, nor does it reflect the impact of consolidating Symbios' operating results during the third quarter.
Shares of LSI were trading at 15.81, down 2.43. The stock has traded as
high as 35.19 and as low as 18.25 during the past 52 weeks.