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DVD Chip Sales May Hit Pause Button Amid Glut.(INTERNET & TECHNOLOGY)
Byline: JAMES DETAR
A couple of former highflying DVD chip companies fell to earth Friday.
Despite brisk sales of digital video disc players, investors who feared a glut of DVD chips could swamp the market sent shares of ESS Technology Inc. and Zoran Corp. tumbling.
News late Thursday from ESS triggered the sell-off. The company cut its sales forecast for the quarter to between $60 million and $64 million. That's down from an earlier estimate of $86 million to $90 million.
Until now, DVD chips were seen as a rare bright spot in the dismal chip field. "This has been the last unadulterated growth market in the electronics industry. As a …
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