VLSI Technology Inc, the maker of application specific chips, predominantly for the mobile communications industry, warned this week that falling revenues would drop even further below current market expectations. Shares in the company fell 11% to close at $7.81 on Thursday. San Jose-based VLSI told investors that for its third quarter through September, revenues would struggle to reach $125m, a fall of 10% from the preceding quarter, and down 30% on the prior year. This will mark the third straight quarter of revenue declines for VLSI, which says it continues to suffer from the prolonged downturn in semiconductor prices. A spokesperson said that VLSI had experienced weakness across all of its markets, including the formerly robust market for mobile communications products. VLSI has been steadily moving away from the PC market over recent periods and is now heavily focused on chips for mobile handsets. The company’s biggest customer continues to be LM Ericsson AB, although it does substantial business with other wireless industry players. Last month the company lost its chief operating officer, Richard Beyer, for personal reasons and in July, it announced a 10% (190 employee) staff reduction which will hit the September quarter with a $6m charge.
á
