CEO Louis Tomasetta said Thursday that business conditions have improved during the last few weeks.
"While visibility hasn't gotten any better, the torrent of push-outs, reschedulings, cancellations and backlogs has at least slowed down," Tomasetta said at the
Merrill Lynch Hardware Technology Conference
Customers that have pushed orders out in many cases are at least giving specific shipment dates instead of basically putting their orders on indefinite hold, he added. In addition, manufacturing suppliers are getting a better handle on the supply chain.
Vitesse also reiterated that it expects revenue will fall to $90 million to $110 million in the third quarter ending in June, down from $122 million in the March quarter. And it expects earnings per share of 3 cents to 7 cents, down from 10 cents in the March quarter. Analysts expect it will earn 5 cents a share in the fiscal third quarter, according to
Thomson Financial/First Call
But by December, the company hopes to be in a recovery, Tomasetta said.
Vitesse, which makes chips for communications companies, said Wednesday night that it would take a charge of $1.5 million to $2 million, or about 1 cent a share, to cut about 12% of its workforce.