Chip Maker IDT Cuts Earnings Forecast

SAN JOSE, Calif. (AP) — Communications chip maker Integrated Device Technology Inc. on Tuesday cut its earnings forecast for the fiscal fourth quarter and announced new cost-saving measures.

The company said it now expected to lose about 3 cents per share, compared to a forecast made in January of between zero and 4 cents per share of profit.

It also predicted revenue between $106 million and $108 million, down from its earlier estimate of $114 million to $126 million.

"Weaker than expected demand from our customers serving the computing end market led to fiscal fourth quarter results that were below our prior projections," said Chief Executive Ted Tewksbury in a statement.

The company also said it was eliminating bonus payments for the second half of fiscal 2009, freezing salaries and eliminating merit increases for fiscal 2010, suspending its matches for employees' 401(k) retirement accounts.

It said it would also require time off for salaried employees and shut down factories in the first quarter of fiscal 2010.

Shares in the company fell a penny to close at $4.55 on Tuesday.