PMC-Sierra Drops After Sales Forecast Misses Analysts’ Estimates

PMC-Sierra Inc., a maker of chips for computer-networking and data-storage equipment, declined in late trading yesterday after it forecast lower sales than estimated, citing weakness in spending by communications companies.

First-quarter sales will be $130 million to $136 million, the Santa Clara, California-based company said on a conference call. That fell short of the $153.2 million predicted by analysts on average in a Bloomberg survey.