inSilicon warns of greater loss, revenue shortfall in quarter

inSilicon warns of greater loss, revenue shortfall in quarter
By Semiconductor Business News
October 4, 2001 (10:58 a.m. EST)
URL: http://www.eetimes.com/story/OEG20011004S0037

SAN JOSE--System-on-chip design core supplier inSilicon Corp. warned investors that its revenues will fall short of estimates in the just-completed fiscal quarter, and the company will post a larger operating loss than expected.

Preliminary information from the company's fiscal fourth quarter, ended Sept. 30., show inSilicon revenues at $3.9 million vs. the current consensus of analysts, which is $6.0 million. The new estimate shows inSilicon's revenues falling 43% sequentially from the prior fiscal quarter.

The supplier of communications design cores for SoC chips said its cash and cash equivalents were at $32 million on Sept. 30.

"We entered the fourth quarter with optimism based on the improvements of the June quarter. However, the selling environment became dramatically more difficult during our final month." said Wayne C. Cantwell, president and CEO of the San Jose company. "We continue to see customer interest in our new products , particularly our USB 2.0 Analog Transceiver, but the turbulent economic environment facing our customers has led to increased project cancellations and delays in purchasing decisions."

In the prior fiscal quarter, ended June 30, inSilicon posted net revenue of $6.0 million and a pro-forma net loss of $702,000, or $0.05 per share. Prior to inSilicon's new guidance, the consensus among analysts was a loss per share of $0.04 in the fiscal fourth quarter, according to First Call/Thomson Financial.