By Austin, Texas – Silicon Laboratories, a leading chip designer, has reported a significant sequential slowdown in earnings and revenue for the quarter ending July 1. The company attributes this decline to weak demand and excess inventory within its home-and-life unit’s customer base.
Net income for the quarter reached $11 million, or 33 cents per share, a decrease from $22.1 million, or 60 cents per share, during the same period last year. This falls short of analysts’ expectations of 40 cents per share. Furthermore, second-quarter revenue dropped by 6.9% to $244.9 million, slightly higher than the expected $242.9 million.
While there was higher demand from industrial-and-commercial customers, Silicon Laboratories experienced weaker performance in its home-and-life unit. President and Chief Executive Matt Johnson explained that the near-term outlook remains challenging.
Looking ahead to the third quarter, Silicon Labs predicts a wide range of earnings results, ranging from a loss of 8 cents per share to a profit of 20 cents per share. Revenue is expected to fall between $190 million and $210 million. On an adjusted basis, the company forecasts earnings between 45 cents and 73 cents per share.
As a result of these disappointing figures, shares of Silicon Labs have dropped by 9% premarket, reaching $144.30.
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