TelCom Semiconductor Revises Expected Fourth Quarter Revenues
TelCom Semiconductor (Mountain View, CA) has reported that it expects fourth quarter 2000 revenues to be down about 10 percent compared to the third quarter just completed. The lower revenue forecast is attributable to order cancellations and push-outs from large customers and a general weakness in demand associated with wireless customers. The down ten percent guidance is lower than the previously expected flat to up slightly expectation. The company expects to have sequential growth in the first quarter of 2001.
Bob Gargus, CEO and President at TelCom Semiconductor, stated "General
demand has weakened and our larger customers have cancelled and pushed out deliveries. Lowering revenue expectations is clearly disappointing but we expect growth to resume during the first quarter. Despite the drop in the fourth quarter we are not revising our guidance or expectations for the calendar year 2001."
TelCom Semiconductor and Microchip Technology (Chandler, AZ) announced a merger agreement last October 27th, 2000. The merger between TelCom Semiconductor and Microchip is not completed and is still subject to regulatory approvals as well as the approval of the TelCom shareholders; the transaction is expected to be completed in the first quarter of 2001.
Steve Sanghi, Microchip's CEO and President commented: "We support TelCom's efforts in helping their key customers manage their inventory. We had anticipated this possibility in our due diligence of TelCom Semiconductor and are supportive of the actions TelCom Semiconductor is taking in accommodating their valued customers."