Silicon Image Warns

It sees sales dropping sequentially.
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Silicon Image (SIMG) tumbled 10% late Thursday after the chip company warned of soft fourth-quarter sales.

The Sunnyvale, Calif., company made $8 million, or 9 cents a share, for the quarter ended Sept. 30, down from the year-ago $9 million, or 12 cents a share. Excluding certain items, latest-quarter earnings were 24 cents a share, 3 cents ahead of the Thomson Financial analyst consensus estimate.

Revenue rose to $78 million from $56 million a year earlier, beating the $77.6 million Thomson estimate.

But the company said it expects revenue for the fourth quarter ending Dec. 31 to fall 3%-5% sequentially, "due to normal seasonality for semiconductor sales in the consumer electronics market."

Analysts were looking for revenue of $79 million.

Shares fell $1.47 to $12.72.