Vitesse Semiconductor (VTSS) was down 8.5% in preopen Island trading after it posted second-quarter earnings of 10 cents per share, meeting the Street's lowered consensus but down from 25 cents a year earlier.
Vitesse, whcih posted the results after the close Monday, said it experienced its first quarterly decline in revenue in more than eight years and blamed a "dramatic" slump in demand for communications and data storage chips.
The company warned that the slowdown would extend into the third quarter, with EPS of 3 to 7 cents, the low end of current analysts' forecasts. But Vitesse said it expects better visibility.
Credit Suisse First Boston
cut earnings estimates for Vitesse.