SG Cowen Cuts Virage Logic to 'Market Perform'

Analyst Tim Fox says deal slippage is not a surprise given the back-end loaded nature of the last few quarters

SG Cowen downgraded Virage Logic (VIRL ) to market perform from outperform.

Analyst Tim Fox says first quarter guidance compares with his seven cents earnings per share estimate, and $13.7 million revenue estimate. He says deal slippage is not a surprise given the back-end loaded nature of the last few quarters. He says design activity in 0.13-micron and 90-nanometer products were hampered by the industry's delayed adoption of leading-edge manufacturing processes. He notes chip spending is still tight, and a difficult ordering environment persists.

Fox cut the 32 cents fiscal 2003 (Sept.) earnings per share estimate to 16 cents, and cut the $58 million fiscal 2003 revenue estimate to $50 million. He say the company is well positioned long-term as the industry recovers.

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