(This story has been corrected to say that the company forecasts revenue decline in mobile segment, not across its segments, in the headline and paragraph 1)
(Reuters) – Apple supplier Skyworks Solutions forecast declines in revenue in its mobile segment and projected profits below Wall Street estimates for the current quarter on Wednesday.
Shares of the California-based company were more than 20% lower in extended trading.
Separately, the company said it had named former Intel and Inseego executive Philip Brace as its next CEO and president as part of a succession process to replace former chief Liam Griffin.
Slower-than-expected adoption of electric vehicles, leading to an excess chip inventory, has weighed on the results of analog chipmakers such as Skyworks.
“We anticipate a mid-to-high teens sequential decline in mobile, consistent with historical seasonal patterns. In broad markets, we expect additional sequential and year-over-year growth,” CFO Kris Sennesael said in a statement.
Skyworks forecast second-quarter revenue to be between $935 million and $965 million, largely in line with estimates.
The company designs and manufactures analog and mixed-signal chips used in wireless communication, automotive, industrial and consumer electronics.
Skyworks rival chip firm NXP Semiconductors also forecast lower-than-expected revenue for the first quarter due to slow demand from its automotive and industrial clients.
Skyworks’ revenue in the fiscal first quarter ended December 27, was $1.07 billion, in line with estimates, while the adjusted profit of $1.60 per share beat estimates of earnings of $1.57 per share, according to data compiled by LSEG.
It also forecast an adjusted profit of $1.20 per share for the March quarter, lower than analysts’ average estimate of $1.22 per share in profit.
(Reporting by Priyanka.G and Akash Sriram in Bengaluru; Editing by Mohammed Safi Shamsi)
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