(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)
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 per cent 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.
