Applied Micro Circuits
plunged 20% Monday after forecasting two quarters of revenue shortfalls.
The Sunnyvale, Calif., chip company said it expects revenue for its fourth quarter ended last month to drop 8% sequentially to $70 million. Applied Micro also said it expects its first quarter ending in June to show a 15% sequential revenue decline. That would put first-quarter revenue at around $60 million.
Analysts surveyed by Thomson Financial were looking for $74 million in revenue for the fourth quarter and $76 million for the first quarter.
"This anticipated decline in revenues is due primarily to expected weakness in distribution, lower beginning backlog, lower projected nonrecurring revenues and a decline in revenues from the previously mentioned processor design production ramp," the company said.
Shares fell 70 cents to $2.83.