Power One

(PWER)

drastically lowered its 2001 growth estimates Friday, citing slowing business and inventory reductions by its customers, particularly

Cisco Systems

(CSCO) - Get Report

.

The Camarillo, Calif.-based manufacturer of power supply systems said it is lowering its forecasted revenue growth for 2001 to 35% to 40% to $690 million to $720 million and its earnings-per-share growth to $1 to $1.05 per share.

On Jan. 24, the company projected that net sales would increase 55% to 60% to $790 million to $810 million, and that earnings per share would range from $1.33 to $1.35.

In early

Nasdaq

trading, the firm's shares plunged $7.31, or 22.7%, to $24.88.

The Camarillo, Calif.-based manufacturer of power supply systems, said it anticipates first-quarter revenue of $172 million to $176 million and earnings of 26 cents to 27 cents a share. Six analysts surveyed by

First Call/Thomson Financial

were expecting the company to earn 28 cents a share for the quarter.

For its second quarter, Power One believes revenue will reach $140 million to $150 million and earnings will be 17 cents to 19 cents a share. Analysts surveyed by First Call/Thomson Financial were expecting 32 cents a share.

"Once the inventory situation is corrected by some of our key customers we should start seeing a resumption of stronger growth rates beginning in the third quarter," the company said.

Power One also revised its third quarter calculations, and is now anticipating revenue of $180 million to $195 million and earnings of 27 cents to 29 cents a share. Six analysts expected the company to earn 36 cents a share in this period.

Finally, Power One said its fourth-quarter revenue would reach $195 to $200 million, and earnings a share would hit 33 cents to 34 cents a share. This again falls short of analysts' estimates of 40 cents a share.