Caroline Humer
(Updated from 4:40 p.m. ET)
The list of communications chip makers warning of revenue shortfalls this week is complete now. PMC-Sierra (PMCS Quote - Cramer on PMCS - Stock Picks) said Thursday that revenue for the quarter ending July 1 will fall to a range of $93 million to $95 million. PMC-Sierra also said that it will lose 7 cents to 9 cents a share. According to Thomson Financial/First Call, analysts had been expecting revenue of $102 million and a loss of 2 cents a share. PMC-Sierra attributed the shortfall to continued weakness during the quarter. So far this week, Applied Micro Circuits (AMCC Quote - Cramer on AMCC - Stock Picks), Vitesse (VTSS Quote - Cramer on VTSS - Stock Picks) and Xilinx (XLNX Quote - Cramer on XLNX - Stock Picks) have said that revenue would be less than expected. Altera (ALTR Quote - Cramer on ALTR - Stock Picks) stuck by its guidance, but said it would take a $115 million charge, mostly for inventory overhang. Broadcom (BRCM Quote - Cramer on BRCM - Stock Picks) warned in early June. PMC-Sierra also said that it would take charges for goodwill, deferred stock compensation, and slow moving or impaired inventory in the quarter. The company didn't divulge the amount of the charges. The telecommunications industry -- and its chip suppliers -- has been weighed on by a slowdown in spending that has all but halted demand and created massive inventories throughout the supply chain.
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