January 29, 2009 / 11:34 PM / 10 years ago

WRAPUP 1-Maxim Integrated, Integrated Device see weak qtrly rev

* Both companies see March qtr rev below Street

* Maxim to reduce opex by $15 mln sequentially

* Integrated temporarily suspending share buyback

BANGALORE, Jan 29 (Reuters) - Chipmakers Maxim Integrated Products Inc (MXIM.O) and Integrated Device Technology Inc (IDTI.O) forecast quarterly revenue below market estimates due to weak demand for their products amid a global economic meltdown.

Semiconductor makers around the world are struggling a near two-year sector downturn, caused by chronic oversupply and weak demand for consumer electronic gadgets.

“We estimate that approximately a third of the expected declines in the March quarter will be related to weak demand, another one-third to inventory drains, and one-third to typical seasonality,” an executive from Integrated Device Technology said on a conference call.

On a conference call, Maxim Integrated said it took several measures to reduce operating expenses, excluding stock-based compensation, by about $15 million sequentially.

These actions include reduction of annual bonuses of employees and cutting manufacturing test operations work hours by 20 percent. Maxim also said the shutdown of its Dallas facility is on track and will be completed in the fourth quarter.

Maxim, of Sunnyvale, California, makes analog and mixed signal chips used for power, management and digital sensing functions in a wide range of electronics.

Maxim expects third-quarter revenue of $290 million to $330 million. Analysts were expecting revenue of $364.4 million.

Diversified chipmaker Integrated Device Technology expects fourth-quarter earnings, excluding items, of about 2 cents, plus or minus 2 cents. It expects revenue of about $120 million, plus or minus $6 million.

Analysts on average expected the company to earn 9 cents a share, before items, on revenue of $148.2 million, according to Reuters Estimates.

While the company expects its revenue to decline almost 32 percent, it sees demand to be stronger in the back half of the March quarter than it has been so far in January.

“We do expect to see some more pick up in our PC and consumer areas towards the end of the quarter,” a company executive said on a conference call.

Shares of Integrated Device Technology, whose customers include Cisco Systems (CSCO.O), closed at $5.48 on Nasdaq.

Shares of Maxim, whose products are sold to communications, computing, consumer and industrial markets, closed at $12.87 on Nasdaq.

The two companies also posted their quarterly results on Thursday. [ID:nWNAB5865] [ID:nWNAB5849] (Reporting by Purwa Naveen Raman; Editing by Pratish Narayanan)

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