Vitesse Loss Will Be Wider Than Forecast

Vitesse Semiconductor Corp., which makes chips for fiber-optic networking equipment, said its fiscal fourth-quarter loss will be wider than forecast because customers are buying fewer products.

The Camarillo-based company said it now expects a loss, excluding certain items, of 12 cents to 15 cents a share for the quarter ending this month. Analysts polled by Thomson Financial/ First Call had forecast a 9-cent loss.

Sales will be $37 million to $40 million, compared with a previous forecast of $50 million, “with a possible deviation” of 10%, the company said.

“This may be the first shoe to drop,” said First Union Securities analyst Karl Motey, referring to the likelihood that Vitesse may be the first chip maker focused on fiber optics to lower its forecast this quarter after almost every such company did so in the previous two periods. He rates Vitesse shares a “buy” and doesn’t personally own any.

Vitesse shares closed down 35 cents at $12.71 on Nasdaq before the company’s announcement.