Updated from Oct. 6
Less than a month after it warned of a quarterly profit shortfall, chipmaker
issued yet another warning Wednesday, revising down its third-quarter guidance for a second time because sales in the final month of the quarter failed to pick up as expected.
The company's shares were recently down 5 cents, or 0.3%, to $16.26.
After the close, the Milpitas, Calif.-based analog chipmaker said it expects revenue of $127 million for the quarter just ended. That's well below the $140 million sales target the company outlined in its first downward profit revision on Sept. 9. Initially, at the time of its July earnings report, Intersil guided for sales in the range of $154 million to $160 million.
The company chalked up the latest revision both to weak demand in September and to the forced closure of its manufacturing facilities for more than two weeks last month due to hurricanes. The dropoff in production resulted in lower-than-expected shipments.
Intersil also said it now expects earnings per share of 11 cents, down from its Sept. 9 forecast for 15 cents.
Analysts were expecting EPS of 15 cents on revenue of $140.2 million.
Intersil is the second big-cap chipmaker to issue two successive profit warnings for the third quarter, a highly unusual event even in the volatile semiconductor industry. Earlier this month,
became the first to
notch that dubious honor.
By end-market measures, Intersil said its consumer and industrial business were in line with expectations, with consumer revenue rising from the second quarter and industrial sales about flat. Sales into computers were down as customers worked off excess inventory. Demand from the communications market continued to suffer from excess customer inventory and saw further weakness in September, the company said.
Intersil is scheduled to report earnings on Oct. 20.