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Wolfson slashes sales forecasts
27.10.08
Chipmaker Wolfson Microelectronics, which manufactures parts for the iPhone and the Xbox games console, today predicted a miserable Christmas as cash-strapped consumers stop splashing out on the latest technology.
Slashing its sales expectations for the next quarter to between $35 million (£23 million) and $45 million from the $45 million-$50 million it forecast only at the start of the month, it warned trading conditions have continued to deteriorate.
Wolfson now forecasts revenues for the year of between $196 million and $206 million, a 13% drop on last year.
Finance director Mark Cubitt said customers were cutting orders in response to the dire consumer outlook. He added: "We have not lost customers but our customers are being extremely cautious and scaling back orders".
Third-quarter profits fell 37% to $9.1 million from $14.5 million a year earlier on revenues down 14% at $60.5 million.
