Apple Supplier Skyworks Forecasts Revenue Decline in Mobile Segment
Skyworks Solutions, a major Apple supplier, has projected lower revenues in its mobile segment and profits below Wall Street expectations for the current quarter.
In extended trading, shares of the California-based company dropped over 20%.
Skyworks appointed Philip Brace, a former executive at Intel and Inseego, as its new CEO and president. Brace will succeed Liam Griffin, who previously held the position.
Excess chip inventory due to sluggish electric vehicle adoption has impacted the performance of analog chipmakers like Skyworks.
"We expect a mid-to-high teens sequential decline in mobile, consistent with historical seasonal patterns," said CFO Kris Sennesael. "In broad markets, we anticipate continued sequential and year-over-year growth."
Skyworks' second-quarter revenue forecast of $935 million to $965 million aligns with estimates.
The company manufactures analog and mixed-signal chips for wireless communication, automotive, industrial, and consumer electronics.
Another chip firm, NXP Semiconductors, also predicted lower-than-projected revenue for the first quarter due to reduced demand from its automotive and industrial clients.
Skyworks' fiscal first quarter revenue, ending December 27, was $1.07 billion, meeting estimates. Adjusted earnings per share of $1.60 exceeded analyst forecasts of $1.57 per share.
The company forecasts an adjusted profit of $1.20 per share for the March quarter, below the average analyst estimate of $1.22 per share.