"Consistent with the overall industry, the company’s revenue declined significantly in its second fiscal quarter, reflecting the impact of the global economic recession on demand for electronics, a correction of excess semiconductor device inventories, and traditional seasonal weakness. The company expects to report revenue for its second fiscal quarter in the range of $45 million to $46 million, or approximately 52 percent lower than in the same quarter last year, and 28 percent lower than in the prior quarter.

The unprecedented low demand for the company’s products resulted in significant underutilization of the company’s manufacturing capacity, which materially adversely affected quarterly gross profit. Consequently, the company expects to report gross profit of around 28 percent of revenue for the second fiscal quarter, and approximately 38 percent of revenue for the fiscal year to date. Based on the company’s performance for the first half of the fiscal year, it no longer expects to achieve gross profit within what had been its full year guidance range of 46 to 48 percent of revenue for fiscal 2009."

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