Shares of chip maker Cypress Semiconductor (CY) were halted this afternoon, and are now down 50 cents, or 3%, at $15.51 after the company cut its outlook for the fiscal Q1 ending in March, citing order cuts from customers in wired networking products and mobile phones.

The company expects Q1 revenue in a range of $180 million to $190 million, which is down from the $200 million to $220 million the company forecast when it reported Q4 results on January 26th.

The company expects EPS in a range of 8 cents to 11 cents per share.

The Street has been modeling $206 million and 16 cents a share.

CFO Brad Buss remarked that “”We have recently seen some order decreases, mostly in certain wire line and handset customers. In addition we are seeing weaker than expected revenues from our distribution channel, mainly due to lower turns business in Europe and Asia.”

Buss said the company had also seen backlog and bookings “stabilize” in January and improve “in the last six weeks.”

Buss reiterated the company’s view that “Q1 will be the bottom for revenue and bookings,” and said Q2′s revenue would increase from Q1′s level.

“However the macro environment and order patterns remain very fluid and lead-times are near historical lows, impacting visibility,” he added.

Fin