Monday, November 19, 2007

Zarlink Trims Financial Guidance

Citing a broader than expected softening of the telecommunication market, Zarlink Semiconductor trimmed financial guidance for its Fiscal 2008 third quarter ending December 28th, 2007.

On October 24, 2007 Zarlink had projected third quarter revenues of between US$55 million and US$58 million and a net loss of US$0.08 and US$0.10 per share. The Company now expects Fiscal 2008 third quarter revenue will be between US$48 million and US$51 million and net loss will be US$0.13 to US$0.15 per share in the third quarter.

Zarlink said it had anticipated seasonal softness in the residential cable gateway market. At the time, Zarlink expected that normal turns business would partially offset the seasonal softness. However, this seasonal softness is both broader and deeper than expected, and slowing deployment of new wireless and next-generation wireline equipment is impacting the ramp of Zarlink's new telecommunications products.

"We are confident that we are making the right technology choices as we rebuild Zarlink, and our key customers are continuing to invest in programs that require our next-generation networking products," said Kirk K. Mandy, President and CEO, Zarlink Semiconductor. "Presently, our revenue is impacted by seasonal softness, compounded by inventory concerns in our sales channels and the supply chains of our major customers. However, we do not believe that these inventory levels will lead to a prolonged downturn for our telecommunications products."

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