Integrated Device Technology
was tumbling in the premarket after warning that its third-quarter revenue would be lower than previously expected. The company now foresees a decrease of 15% to 20% from its second-quarter revenue of $97.1 million. Analysts polled by Thomson Financial/First Call are currently expecting third-quarter revenue of $95.4 million.
The maker of microchips for communications devices said the reduced forecast is due to the decline in economic and business conditions in Europe and Japan. Projected order rates from customers have been lower than expected, leading to the warning.
Shares of IDT were recently trading down $2.33, or 7.5%, to $28.75 in Instinet premarket trading after closing down $1.17 to $31.08 ahead of the warning Thursday.