Already a Bloomberg.com user?
Sign in with the same account.
CS First Boston cut estimates on Applied Micro Circuit (AMCC
Analyst Charlie Glavin says the chipmaker's preannouncement was worse than expected, and Applied Micro says Q1 would experience a 67% sequential decline. Glavin cut the $0.01 Q1 EPS estimate to a $0.06 loss, which assumes gross margin drops to 40%. He also cut the $0.12 fiscal 2002 (March) EPS estimate to a $0.17 loss, and slashed the $0.26 fiscal 2003 EPS estimate to a $0.03 loss.
Glavin notes Applied Micro attributes the magnitude of its loss to excess inventory throughout the supply chain, continuing cancellations, product pushouts, and weak turns in the business across the board. He says given the severity of the near-term environment, he cut the $40 target to $18. Glavin maintains his buy rating.