on Monday reduced its third-quarter revenue forecast, blaming a slowing economy and customers' excess inventory.
The provider of embedded software and semiconductor products said revenue should be between $25 million and $30 million for the quarter, below previous forecasts. In January, the company said third-quarter revenue would fall 40% below the second-quarter figure of $60.6 million, implying a revenue expectation of about $36 million.
The company also said it expects a loss of $6.5 million to $7.5 million, or 10 cents to 13 cents a share, excluding charges, but including an inventory write-off. Oak said that fourth-quarter results should be an improvement over the third quarter, but declined to give specifics until it announces its third-quarter results on April 24.
Shares of Oak, which is based in Sunnyvale, Calif., fell 66 cents, or 11.4%, to $5.09 in recent
The company said a significant number of its customers "aggressively" built inventory levels in previous periods to protect against supply shortages and prepare for strong demand that never materialized due to the a slowing economy. The inventory correction is progressing slower than anticipated and is affecting the current quarter's results, the company said.
"Given current market uncertainties and the continued lack of visibility in the industry, previous guidance with respect to the fourth fiscal quarter is no longer operative and should be disregarded," the company added.