reduced its fourth-quarter financial forecast, citing lowered short-term demand resulting from the buildup of inventory.
The communications chipmaker, headquartered in Milpitas, Calif., said it expects fourth-quarter earnings of 34 cents a share, compared with earnings of 24 cents a share in the same period last year. This falls short of the 20-analyst estimate on
First Call/Thomson Financial
, which called for fourth-quarter earnings of 36 cents a share.
Fourth-quarter revenue is expected to grow 3% to 4% from third-quarter revenue of $728 million. Prior guidance called for a 10% sequential growth in revenues. LSI also said it expects gross margin to be comparable to the 43.3% in the third quarter, down slightly from prior guidance of 44%.
Shares of LSI closed Monday at $18.19 on the
New York Stock Exchange
, down from a 52-week high of $90.38.