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Spansion Cuts Its Revenue Estimates

The chipmaker cites weak business conditions in China for the change in its forecast.




cut its first-quarter sales estimate Tuesday, citing weak business conditions in China.

The Sunnyvale, Calif., maker of NOR flash memory chips said revenue in the three months ended March 30 is expected to be roughly $570 million, instead of its forecasted range of $580 million to $640 million.

Analysts polled by Thomson Financial were looking for $609.8 million in sales with a negative EPS of 64 cents.

Shares of Spansion were halted following the announcement. The stock finished Tuesday's regular session off 10 cents at $3.

Spansion's warning comes a day after

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cut it revenue outlook for the quarter and announced plans to layoff 10% of its workforce


Several other tech players also cut financial estimates Tuesday, including portable navigation device maker


and chip equipment maker



, heightening fears on Wall Street that a slowing economy was taking a toll on the tech business.

A maker of flash memory chips, Spansion has struggled under adverse business conditions for months, as prices of the chips have crashed.

Spansion said Tuesday that its sales shortfall was primarily a result of weak business conditions in China during the quarter. Pricing and net sales outside of China were generally in line with expectations, the company said.

Spansion is due to report its first-quarter earnings on April 16.