Tvia Plunges on Revenue Drop

It cites component shortages.
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Tvia (TVIA) plunged 56% after warning that second-quarter revenue will plunge because of flat-panel disply screen component shortages.

The Santa Clara, Calif., digital display processor company said revenue for the quarter ending Sept. 30 will range from $300,000 to $400,000, down from $5.1 million the previous quarter.

Tvia attributed the reduction in expected revenue primarily to shortages during the quarter of LCD panels and other key components used to assemble digital TVs and flat-panel displays that has had a major impact on customers' manufacturing schedules and consequently, their order rate for processors. It has also hampered the company's ability to deliver system-level products to customers.

Tvia said it is also continuing to experience competitive pressure resulting from price decreases by other processor manufacturers.

"While recent market conditions have had an adverse effect on orders from our customers and our ability to fill customer orders in this past quarter, we are encouraged by the improved availability of LCD panels and key components and continuing strong end-user demand," said CEO Eli Porat.

Shares fell $2 to $1.50.