Communications chipmaker

PMC-Sierra

(PMCS)

was down 8.5% in preopen

Island

trading after warning first-quarter EPS would be 2 cents to 3 cents, well below analysts' estimates of 12 cents, and announcing plans to cut 230 jobs. The company earned 17 cents in the year-ago period.

PMC-Sierra also dropped its revenue target to $118 million to $120 million, vs. $103 million in the same period last year.