Semiconductor firm Agere Systems Inc. (NYSE: AGR) cut its second quarter earnings outlook on Monday, citing weaker business from several of its networking and storage customers.

Shares of the company lost 29 cents, or 1.31 percent, to close at $21.85 in trade at the New York Stock Exchange.

Sales for the quarter ending this month are expected to fall 12 percent from the previous quarter, however the firm believes the forecast does not reflect any long-term problems.

The company views this as a short-term revenue correction and not a fundamental change in its future business outlook, Agere said in a statement.

The slide affected another chip maker, LSI Logic (NYSE: LSI), who is set to purchase Agere. LSI fell 0.88 percent, or 9 cents to $10.18 in trading at New York Stock Exchange.

Craig Berger, analyst at Wedbush Morgan maintained his BUY rating on LSI, maintaining the merger should drive better than expected cost savings synergies.