Wednesday, January 4, 2012

Mindspeed Cuts Financial Guidance

Mindspeed Technologies cuts its financial guidance for its fiscal first quarter of 2012, which ended on December 30, 2011. The company now expects revenues in its fiscal first quarter of 2012 to be approximately $33.3 million. The company's previous guidance for fiscal first quarter revenue was to be in the range of $35.9 million to $37.5 million.

"We continued to experience a weaker demand environment in the fiscal first quarter of 2012, primarily related to a slower work-down of inventory levels in the channel than we had anticipated, across the entire product portfolio," said Raouf Y. Halim, chief executive officer of Mindspeed. "That said, based on positive trends in channel inventory and customer point of sales data through the month of December, as well as current backlog, our perspective is that the demand environment is stabilizing. We also believe we will see improving gross margin trends in the fiscal second quarter," added Mr. Halim.