Woburn, Mass.-based Skyworks announced that it was lowering its guidance on quarterly earnings and revenue due to an anticipated drop in revenue resulting from it ceasing shipments of its products to Huawei.
"Skyworks ceased all shipments to Huawei and its affiliates as of the date Huawei was added to the Entity List and cannot currently predict if and when shipments will resume," the company said the statement, adding that 12% of its revenue came from Huawei.
The company said it now expects to post revenue of between $755 million and $775 million, compared to its prior guidance of between $815 million and $835 million, and non-GAAP earnings per share of $1.34 compared to its previous forecast of $1.50. Analysts polled by FactSet were expecting per-share earnings of $1.50.
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The stock has dropped some 12% since May 15, when the U.S. Bureau of Industry and Security, part of the U.S. Commerce Department, placed Huawei and dozens of its affiliates on an "Entity List" that greatly restricts its ability to buy components from U.S. companies.
Shares of Skyworks were down 0.9% to $68.81 in trading Wednesday on the Nasdaq Stock Market. The shares road the broader technology and stock market rebound on Tuesday, closing up 3.71%, or $2.48, at $69.40.