August Technology Trims Guidance

Big or small, it doesn't matter in the semiconductor sector these days.

August Technology (AUGT Quote) Thursday joined its bigger rivals in lowering guidance.

The Minneapolis-based company said revenue for the quarter ending Sept. 30 would be approximately $15 million, about 25% less than the second quarter. The company previously forecast a sequential revenue increase of 5% to 15%. The consensus forecast of analysts is for earnings of 16 cents a share on revenue of $21.9 million, according to Thomson First Call.

August said the decrease is "due to delays in installations and a more cautious approach to near-term capital spending by its customers, particularly in semiconductor final manufacturing."

The company expects fourth-quarter revenue will be similar to that of the third quarter. Analysts expect the company to post revenue of $22.7 million.

The company reports third-quarter 2004 results Oct. 20. As of Wednesday's close, August had a market capitalization of about $165 million. Shares closed at $9.28 yesterday.

In recent weeks, semiconductor companies from Intel(INTC Quote) to Texas Instruments(TXN Quote) to PMC-Sierra(PMC Quote) have lowered guidance, signaling a sectorwide slowdown.