| Tech Stock News and Analysis |
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| Thursday, December 21, 2006 |
Shares of PMC-Sierra Inc (NASDAQ PMCS)., maker of chips used in telecom, networking, and storage equipment, fell sharply in premarket trading after the company cut fourth-quarter revenue estimates.
The company said after market close on Wednesday it expects $100 million to $105 million in revenue, down from a previous projection for $105 million to $112 million, because of slower demand. Wall Street is looks for earnings of 5 cents per share on $108.9 million in revenue.
Stanford Group Co. analyst Tim Kellis, who has a "Sell" rating on the stock, thinks the company is no longer the leader in the communications space, and lowered his fourth-quarter revenue estimate to $99.1 million from $106.4 million. He also cut his earnings estimate to 3 cents per share from 5 cents per share.
Kellis' target price is $5.
Shares of PMC-Sierra lost 19 cents, or 2.8 percent, at $6.70 in early trading on the NASDAQ. |
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