Agere Systems (AGR)

[sylvester80]

Inventories May Endanger Semi Orders
06.17.04, 1:59 PM ET
http://www.forbes.com/markets/2004/06/17/0617automarketscan10.html?partner=yahoo&referrer=

Prudential Equity Group noted that during Jabil's (nyse: JBL - news - people ) fiscal third-quarter earnings conference call, managers revealed that company production schedules had been reduced by about 2% to 3% due to repositionings of its customers' inventory levels. This phenomenon was one reason Jabil had to cut revenue guidance for future periods. Prudential noted that the bulk of the inventory repositioning took place in the computing and storage sector and in the networking and telecommunications group. "We continue to believe that growing inventories represent a risk to semi order rates as visibility into end market demand is limited," Prudential said. According to the research house, the component suppliers with the large exposure to telecom and networking segments include PMC-Sierra (nasdaq: PMCS - news - people ), Marvell Technology (nasdaq: MRVL - news - people ), Agere Systems (nasdaq: AGRa - news - people ), Altera (nasdaq: ALTR - news - people ), Broadcom (nasdaq: BRCM - news - people ) and Xilinx (nasdaq: XLNX - news - people ).