Chips: Needham Cuts Estimates; Sees Q1 Revs Off 15-20 Percent

January 23, 2009 at 10:49 am PT

Now that we’re experiencing Q4 earnings reports in all their glory, the time has come to shift focus to Q1. That’s what Needham chip analyst N. Quinn Bolton did this morning. And the picture is not pretty.

Bolton says he now expects Q1 revenues for most of the companies he covers to be down 15-20 percent sequentially, with Q2 sequentially flat. (His previous theory was that Q1 would be down about 10 percent.) He says that currently depressed orders have been depressed by supply chain-wide inventory reductions, but that “visibility into a snapback in orders remains uncertain.” His current theory: Slash estimates to the bone, and hope the companies can start to beat them in the second half.

Read the rest of this post

Tagged with: Barrons, chip, earnings, Eric Savitz, frontpage, inventory reduction, N. Quinn Bolton, Needham, revenues, Tech Trader Daily

comments so far. Add yours.

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Web Sites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other Web sites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Voices is edited by Beth Callaghan.