UPDATE 1-SiRF sees wider-than-expected Q4 loss
* Q4 loss, revenue forecast below expectations
* Shares fall 4 percent * Q3 loss of $0.11 beats estimates
Oct 29 (Reuters) - Chipmaker SiRF Technology Holdings Inc SIRF.O posted a smaller-than-expected quarterly loss, helped by lower operating expenses, but forecast weak fourth-quarter results on competitive pressures and an ongoing patent litigation. [ID:nWNAB4361]
In a conference call with analysts, SiRF said it is expecting fourth-quarter litigation expenses to be similar to that in the third quarter.
Patent litigation costs have weighed heavy on SiRF, which is is currently involved in a dispute with rival Broadcom Corp (BRCM.O).
Shares of the company, also affected by a slowdown in demand for its chips, have lost about 84 percent of their value in the last six months.
The company said the ongoing International Trade Commission litigation could affect the future importation and delivery of certain current SiRF products into the United States.
Early this month, SiRF got a reprieve when the U.S. ITC decided to review, in part, an initial finding by ITC administrative law Judge that certain SiRF products infringed six patents held by Broadcom Corp (BRCM.O).
"This was a challenging quarter for SiRF with weakness in demand driven by global economic uncertainty and continued competitive pressures that impacted both our revenue and margins," the company said in a statement.
The company, however, reduced its total operating expenses by 22 percent during the quarter. [ID:nWNAB4309]
SiRF Technology specializes in making chips for location-aware gadgets made by companies such as Garmin (GRMN.O) and TomTom (TOM2.AS) for devices used by drivers, hikers and boaters.
Both Garmin and TomTom have lowered their 2008 outlook citing softness in the economy.
Shares of the company were trading down 4 percent after the market. They closed at $0.91 Wednesday on Nasdaq. (Reporting by Bijoy Koyitty in Bangalore; Editing by Saumyadeb Chakrabarty)
