Semiconductor company O2Micro International Ltd. (OIIM), Thursday released its revenue forecast for the fourth quarter, indicating a decline when compared sequentially. The lower revenues forecast is attributed to inventory adjustments. Following the announcement, O2Micro shares are down over 4.5% on the Nasdaq.
George Town, Cayman Islands-based O2Micro said it expects fourth quarter revenue in the range of $21 million to $22 million.
On average, four analysts polled by First Call/Thomson Financial currently expect revenues of $32.34 million for the quarter.
The company, however, noted that the current forecast represents a decline of 42% to 46%, when compared to the third quarter of fiscal 2008. Sales for the third quarter were $37.79 million, a decline of 16.3% from the same quarter a year ago.
In the third quarter O2Micro reported a loss compared to a profit last year, hurt by impairment loss and higher operating expenses.
O2Micro attributes inventory adjustments in the supply chain as the contributing factor to the lower sequential revenue forecast.
Gross margin is also expected to be at the low-end of the company's target range of 55% to 60% in the fourth quarter due to the fixed cost component.
Sterling Du, Chief Executive Officer said, "Our semiconductor chips go primarily into consumer electronics and our preliminary results reflect this exposure."
OIIM is currently trading at $2.08, down $0.11 or 5.02%, on a volume of 0.22 million shares.
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