PMC-Sierra Shares Off Over 30% Following Downgrades, Shaky Outlook

Networking chip company PMC-Sierra's (PMCS Quote) shares were plummeting $31.44, or 32.8%, to $64.38 this morning following a slew of downgrades after saying its outlook for the next few quarters was diminished due to inventory overhang and reduced demand for products.

It was cut by Credit Suisse First Boston to buy from strong buy. Lehman Brothers reduced 2001 earnings estimates to 84 cents a share from $1.64. UBS Warburg downgraded the company to hold from strong buy, and Robertson Stephens lowered its rating to buy from strong buy. Goldman Sachs downgraded the company to market outperformer from its recommended list.

The company said last night it earned 34 cents a share, in line with expectations, but it expects a sharp decline in revenue and earnings for the first quarter.