analyst Dan Niles cut 2001 earnings estimates on two chipmakers Monday, citing a decline in pricing and profit margins. It cut memory chipmaker
earnings-per-share forecast to 35 cents from $1.25.
estimate was lowered to $1.80 a share from $2.20.
In a research note, Niles wrote, "Much of the equipment bought over the past six months is only starting to ramp to full capacity. The supply situation will likely get worse in the first half, while demand looks sluggish at best, with large inventory levels in the supply chain."
Niles also wrote that his firm believes the bottom will be reached only in the third quarter or fourth quarter.
Also on Monday, another chipmaker,
warned of lower-than-expected revenue in the first quarter.