Lehman Brothers' Dan Niles lowered expected earnings and revenue growth on specialty semiconductor names Xilinx (XLNX) - Get Report and Altera (ALTR) - Get Report this morning, citing sluggish booking patterns and the expectation that contract manufacturers will continue to draw down inventories.

Xilinx's revenue growth was lowered to 15% from 20% for 2001, while Altera's was dropped to 4% from 10%. Earnings estimates were also cut for both companies. Earnings per share estimates for Xilinx were dropped to $1.25 from $1.30 and dropped to 89 cents from 94 cents for Altera. Lehman, which has not underwritten for those stocks in the last three years but makes a market in both names, rates both companies "market perform".

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