* Sees Q1 rev down 10-14 pct sequentially
* Q4 adj EPS $0.73 vs est $0.67
* Q4 revenue $623 mln vs est $620.8 mln
* Shares down 2 percent
Dec 1 (Reuters) - Avago Technologies Ltd
forecast weak sales for the first-quarter as an uncertain global
economy forces original equipment manufacturers to keep low
inventory levels, hurting demand for its analog chips.
Avago, whose chips are used in everything from cellphones
and optical mice to servers and power grids, sees first-quarter
revenue falling 10-14 percent on a quarter-on-quarter basis.
This implies revenue of $535.7-$560.7 million for the
period, well below analysts' estimate of $593.7 million,
according to Thomson Reuters I/B/E/S.
"We believe volatility in the financial markets and slow
growth in China's economy is causing a number of OEMs and most
distributors to take risks out of their business model and to
substantially reduce their inventory levels," Chief Executive
Hock Tan said in a conference call with analysts.
"Because of this we see the impact of lower
component demand in our industrial markets."
The company also said supply challenges due to
flooding in Thailand would reduce revenue by $10-20 million in
the first quarter.
One of Analog's key suppliers, Hana Microelectronics Pcl,
-- Thailand's biggest semiconductor packager -- had to
shut its plant because of the floods. Hana also
distributes to Avago's larger peers Texas Instruments Inc
and Maxim Integrated Products Inc.
For the fourth quarter, net income fell to $154 million, or
61 cents per share, from $164 million, or 66 cents per share, a
year ago.
Excluding items, the company earned 73 cents per share.
Revenue for the quarter rose 9 percent to $623 million.
Analysts, on average, expected fourth-quarter earnings of
67 cents per share on revenue of $620.8 million.
Shares of the Singapore-based company were down 2 percent in
extended trade. They had closed at $29.91 on Nasdaq on Thursday.
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