Intersil CEO Dave Bell: Chip Demand was Weaker than Expected

Intersil (NASDAQ:ISIL) said late yesterday its third quarter revenue will now be in a range of $184 million to $188 million, compared to a previous forecast of $205 million to $213 million. Dave Bell, CEO of the analog chip maker noted that demand during the last quarter was weaker than expected in all of the company’s end markets, stemming from broad-based economic weakness and also from excess inventory consumption.

However shares are rallying 3.3% to $11 as the bad news keeps coming in the chip sector (NYSE:SMH). It’s rival Texas Instruments (NYSE:TXN) lowered forecasts last week. The company trades at a P/E ratio of about 14.6 which is higher than its peers. The company also trades at a sales multiple of 1.6 which is in line with its industry.

Don’t Miss: IDC Lowers PC Shipment Forecasts Through 2012.

Technically speaking shares trade below the declining 50 day and 200 day moving averages. The MACD is bullish while RSI is pointing up at about 51.

Competitors to Watch: Texas Instruments Inc. (NYSE:TXN), Analog Devices, Inc. (NYSE:ADI), Intersil Corporation (NASDAQ:ISIL), Linear Technology Corp. (NASDAQ:LLTC), ON Semiconductor Corp. (NASDAQ:ONNN), Maxim Integrated Products Inc. (NASDAQ:MXIM), STMicroelectronics N.V. (NYSE:STM), Fairchild Semicond. Intl. (NYSE:FCS), Micrel, Incorporated (NASDAQ:MCRL), Intel (NASDAQ:INTC) and Semtech Corporation (NASDAQ:SMTC).