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Vitesse Semiconductor (Nasdaq: VTSS) was up US$1.11 at $38.92 in early trading Monday, even after the Camarillo, California-based company joined the parade of high-tech companies warning of weak quarterly results.
Vitesse said it is cutting its estimates of revenue and pro forma earnings for the second quarter ending in March because of "continued weakness in its communications and data storage applications."
Revenue for the quarter will likely total $150 million to $160 million, rather than the originally estimated $180 million to $190 million, while pro forma income will total 21 to 22 cents per share, instead of the previously expected 26 to 27 cents.
"After completing our end-of-February review, we decided that due to the continuing loss of visibility among our communications customers and the unexpected decline in our storage applications, we no longer had confidence that our forecasted turns business would materialize," said president and chief executive officer Lou Tomasetta.
"We continue to see strong growth in our network processor, switch fabric and OC192 module accounts and believe these areas are softening the blow of the major downturn that has been reported by nearly all the communication IC suppliers," Tomasetta added.
Vitesse designs and supplies semiconductors to makers of optical networking communications equipment. The company has fabrication plants in Camarillo, and Colorado Springs, Colorado.
For the first quarter ended December 31st, Vitesse reported revenue of $165.1 million, up 85 percent from a year earlier. Income before goodwill and deferred compensation rose to $47.6 million, or 25 cents per share, from $20.4 million, or 11 cents.
Vitesse said that it was able to post gains
despite a slowdown in business at some of its larger customers.
