VLSI Shares Fall After Profit Warning

Bloomberg News

Shares of VLSI Technology Inc., a specialized semiconductor maker, fell 11.4% after the company said its fiscal third-quarter sales and earnings will be lower than analysts' forecasts due to a slowdown in the semiconductor industry. The shares dropped $1 to close at $7.81 on Nasdaq, their lowest close since June 1993. San Jose-based VLSI said revenue for the quarter ending Sept. 26 will be 5% to 10% less than the $137.8 million it had in the second quarter. The company will take a third-quarter charge for previously disclosed job cuts. VLSI also said fourth-quarter revenue will be unchanged or 5% higher than the third-quarter's. The warnings come as VLSI and other chip makers combat falling sales caused in part by weak demand, especially in Asia. VLSI has seen profit fall this year on slowing sales of its chips for wireless phones. Analysts had expected VLSI to earn 13 cents a share.

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