Rising inventories in its supply chain have forced LSI Logic to slash its third quarter forecasts, the company admitted yesterday.
The I/O and storage chip vendor said revenues are now expected to come in between $370 million and $400 million, well down on the $435 million to $465 million it originally expected.
While it originally expected the bottom line to come in between a net loss of $0.03 and break-even, it now expects a net loss of $0.14 to $0.17.
The chip sector has endured a long hot summer with fears that the latest boom has deflated before it really began punctuated by pared-back financial forecasts, and LSI’s figures show a particularly dramatic shortfall.
In a statement, chairman and CEO Wilfred Corrigan said the firm had seen broad-based build of inventory in the supply chain starting in the second quarter, which impacted each of our business units in the third quarter.
He insisted that LSI expects positive revenue growth in the fourth quarter, as inventory is worked down.