SAN FRANCISCO --

Marvell Technology

(MRVL) - Get Report

warned Wall Street that sales in its fiscal third quarter will fall short of its previous expectations.

The Santa Clara, Calif., chipmaker said sales will decline 6% to 7% sequentially, instead of increasing 2% to 3% as it had previously forecast.

"The slowing of the world-wide economy has significantly impacted our business. Visibility into the future demand for our products has also deteriorated," said CEO Sehat Sutardja.

Marvell's new forecast puts its third-quarter sales between $783.9 million and $792.4 million, compared to the $867.8 million expected by analysts. Marvell's third quarter closed on Nov. 1, about a month later than most of its fellow chipmakers.

Last month,

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, both of which compete with Marvell, said sales in the third quarter increased sequentially, but said that revenue in the final three months of the year was expected to decline quarter over quarter.

Sutardja said Monday that Marvell was taking steps to ensure the long-term health and profitability of the company amid the uncertain "demand environment."

Shares of Marvell were up 6 cents at $6.76 in extended trading Monday.