Cirrus Logic, which makes a component in Microsoft's video game console Xbox, said this morning its fiscal first-quarter revenue would fall short of earlier forecasts due to lower demand by customer Thomson Multimedia (TMM).
France's TMM stated in reply that it had fulfilled its contractual obligations to Cirrus.
Chipmaker Cirrus makes an optical controller for DVD systems that it sells to Thomson Multimedia, which builds the DVD systems and sells them to Flextronics International Ltd., which manufactures the Xbox.
Cirrus, based in Austin, Texas, said it now sees revenue for the first quarter ending June 29 of $74 million to $77 million, compared with its May 1st guidance of $87 million to $88 million.
The Xbox has gotten off to a slow start in Europe when it was launched March 14th, but sales picked up once Microsoft cut prices in late April, in some cases coming close to 40 percent.
TMM said it had met its obligations to Cirrus.
"We shall be significantly above all of our contractual commitments, both in the first quarter and over the year," said a TMM spokesman in Paris.