Integrated Device Cuts Guidance; Freezes Salaries

Integrated Device Technology (IDTI) this afternoon reduced its guidance for its fiscal fourth quarter ended today. The company now sees revenue of $106 million to $108 million, down 35%-37% sequentially, with a non-GAAP loss of 3 cents a share. Previously, the chip company had forecast revenue of $114 million to $126 million and profits of zero to 4 cents a share.

In a statement, CEO Ted Tewksbury said that the company saw “weaker than expected demand from our customers serving the computing end market.” The company said reductions in PC-related channel inventory had a greater than expected impact on shipments, and that it saw lower demand for memory interface products than expects “as certain memory module manufacturers faced financial difficulties.”

The company added that it saw stabilization in orders late in the quarter, and that book-to-bill in Q1 was “comfortably above one.” IDTI says it sees June quarter revenue flat to up sequentially from the March quarter. The current Street consensus is for $120.5 million.

IDTI also said it will take steps to cut costs, including elimination of bonus payments for the second half of FY 2009, a salary freeze for FY 2010, suspension of company match for its 401(k) plan and “required time off for salaried employees and further manufacturing shutdowns” in the June quarter.

In the regular session, IDTI fell a penny to $4.55. Trading in the stock is currently halted.