Shares of

Elantec Semiconductor

(ELNT)

took a tumble this morning after the company warned of lower second-quarter revenue and earnings due to a "continued economic slowdown" and weakening PC demand.

Its shares plummeted $6.06, or 19.8%, to $24.50 in early trading on the

Nasdaq

Wednesday morning.

The Milpitas, Calif., company (its name is a derivative of the French word for "vigorous spirit") warned that second-quarter revenue would be down about 20% to 25% from the first-quarter figure of $40.71 million.

Elantec, which said it has already initiated cost-reductions to partially offset its revenue shortfall, also projected second-quarter earnings of 20 cents to 22 cents a share. According to

First Call/Thomson Financial

, four analysts expect earnings of 38 cents a share for the quarter.

"Market conditions have not improved during the quarter for the Company's products, particularly those tied to PC market demand. Customers in this market segment continue to cancel or reschedule backlog, causing limited visibility for the company. So far this quarter, demand for the company's DSL communications products remain strong, but will not be able to offset the decline in its other market segments," Elantec said.