Santa Clara, California–Alliance Semiconductor Corp. has reduced its revenue guidance for the fiscal third quarter (Q3) ended December 31, 2000, and now expects Q3 revenues to be flat or up 2% sequentially from the $64.5 million reported in the fiscal second quarter ended September 30, 2000. Prior revenue projections in October anticipated sequential quarterly revenue growth of over 20%.

“While Alliance has had good success over the past year focusing in high-growth market segments such as networking, communications, wireless, and consumer, the company has recently experienced some order cancellations and reschedulings with customers in some of these market segments,” says Alliance Chairman, President, and CEO N.D. Reddy. “The major reason for the revenue shortfall this quarter is primarily due to lower DRAM sales in the Asian market due to lower demand as well as yield related problems with some SRAM products. We believe that the SRAM yield problems have now been fixed and the overall SRAM product booking activity remains good.”