SiliconBeat

Integrated Silicon Solution, the fabless San Jose chip company that designs devices used in digital consumer electronics, networking, mobile communications, and automobiles, reported a 46 percent drop in sales for its fiscal 2009 second quarter Tuesday, saying that demand weakened some more in all of its markets during the March quarter.

“However, we believe demand has now stabilized and that customers are nearing the completion of their inventory reductions,” said CEO Scott Howarth in a statement with the earnings release.

Earlier this month Integrated Silicon Solutions repriced underwater options for 208 employees, pricing them at $1.65. Since then its shares are up 30 percent, closing Tuesday at $2.15 before the company released its earnings.