VDSL2 chip delays drag Ikanos revenue

Chip maker Ikanos Communications warned late Wednesday its third- and fourth-quarter revenue would fall below analysts’ expectations due to delays in some of its newest products as well as “manufacturing constraints and general weakness in the communications industry.”

The company expects its third-quarter revenue to fall in the range of $36 million to $37 million. In July, the company was expecting $40 million to $43 million.

Ikanos blamed the shortfall on delays in the fifth generation of VDSL2 chips it unveiled in July as well as the fourth generation. The new chipsets--meant for DSLAMs, optical network units, concentrators and customer premises gear--support 48 ports per line card of symmetrical, 100-Mb/s bandwidth and boast a longer reach than the previous generation of Ikanos chips (18,000 feet as opposed to 15,000).

In addition, Ikanos’ chief executive officer Rajesh Vashist said in a statement released Wednesday, “Carriers in Japan are currently working through their existing equipment levels, thus impacting our [fourth-quarter] revenue. We believe this will largely be resolved by the end of the year.”