(Reuters) – Monolithic Power Systems forecast current-quarter revenue slightly below estimates on Monday, signaling weakness in some areas of the semiconductor industry, sending the company’s shares down 4% in after-market trading.
Despite a boom from artificial intelligence (AI) applications, chip sales still face weakness in certain end markets from the reeling effect of disruption from the COVID-19 pandemic.
The maker of circuit-level power solutions sees revenue between $464 million and $484 million for the quarter ending Sept. 30. The midpoint of the range came in below the $473.5 million estimate, according to Refinitiv data.
Kirkland, Washington-based Monolithic Power sells power solutions used in cloud computing, and telecom, automotive, industrial applications.
In the quarter ended June 30, the company’s revenue decreased 4.3% to $441.1 million, slightly higher than the average analyst estimate of $440.3 million. It earned $2.82 per share, also higher than estimate of $2.80.
Sales to storage and computing customers, the largest end-market for Monolithic Power, grew 1.8% to $124.5 million. Its second-largest revenue line, automotive, jumped 71% to $104.4 million.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Maju Samuel)
