SAN FRANCISCO—Networking chip vendor Cavium Inc. said Monday (April 2) that first quarter sales would miss the company's guided target due to lower than expected sales to the service provider and broadband and consumer markets.
Cavium (San Jose, Calif.) said first quarter sales would be between $52.4 million and $52.9 million, down 6 to 7 percent from the fourth quarter of 2011. Cavium also issued a sales warning last December, prior to issuing its fourth quarter financials.
Cavium said sales during the first quarter increased sequentially in the enterprise and data center markets, but declined in the service provider and broadband and consumer market. Sales in the service provider market were affected by continued inventory de-stocking, while sales into the broadband and consumer business were affected by delays in deployment of certain programs, Cavium said.
Cavium said it expects that total sales in the second quarter will increase sequentially.