SigmaTel( SGTL) said equipment issues at test and assembly facilities will contribute to third-quarter results coming in below prior expectations.
The multimedia chipmaker said it expects revenue for the quarter of $74.4 million -- below the current Thomson First Call consensus of $78.6 million -- as well as gross margins below its prediction of about 51%.
In addition, the revenue and gross margin shortfall will cut about 10 cents a share from the low end of the company's previous guidance. In late July, the company said it expected to earn 30 cents to 37 cents a share before items.
Analysts had expected the company to earn 30 cents a share in the quarter.
SigmaTel said the equipment issues were compounded by heavily back-end loaded demand during the latter half of September. Additionally, the mix of products sold during the quarter was hurt by this loss of production with a significant amount of higher-end products unable to ship, shifting the sales mix and driving down gross margins. There were a total of 1.3 million lost units that forced the rescheduling of the related orders to October 2005.
Shares of SigmaTel, which supplies chips to
iPod shuffle player, were halted immediately ahead of the announcement. Following its return to trading, the stock fell $1.61, or 9.2%, to $15.60 on Instinet.
SigmaTel shares have been in a tenuous position since it was discovered last month that its chips were not included in Apple's hot new flash-based iPod nano player. Instead, Apple chose audio processing chips made by
, which had previously only supplied audio processors for hard-disk-drive-based MP3 players.