Dain Rauscher Lowers Vitesse Opinion

Analyst Shekhar Wadekar cut the rating after the chipmaker announced job cuts and a slowdown in customer demand

Dain Rauscher downgraded Vitesse Semiconductor > (VTSS ) to neutral from buy.

The company will cut its workforce by 12% and take a related Q3 charge of $1.5M-$2M. Analyst Shekhar Wadekar says the news suggests to him that Vitesse is preparing for a long, slow road ahead. He says it appears there's not going to be an instant snapback in Vitesse's fortunes.

Wadekar cut the $0.47 fiscal 2001 (Sept.) EPS estimate to $0.43, and lowered the $0.43 fiscal 2002 estimate to $0.26.

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