National Semiconductor has warned that it will make an operating loss for its fourth quarter, which ends on 31 May, and that the outlook for the first quarter of its 1999 fiscal will also be below par.
The company said that sales for the fourth quarter will decline by as much as 20 per cent, compared to the same period last year, and said it is possible it will turn in a loss for the first quarter of 1999 as well.
It is blaming low sales to the PC industry. Overstocking and other 'inventory corrections' have led to a reduction in the number of PCs built recently. And although the PC vendors have predicted that they expect the situation to improve within a few months, Natsemi warned that current order rates for its parts are not improving significantly.
Other factors affecting Natsemi's poor forecasts are difficult product transitions in its Lan business as it seeks to roll out 3.3volt Phyter products this autumn, it said.
While sales of its analogue products have improved, this was not sufficient to offset poor sales in its other business areas, the company added.
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