Apple (NASDAQ: AAPL) chip supplier Skyworks solutions (NASDAQ: SWKS) announced on Wednesday that it is lowering its revenue and profit forecasts for the current quarter due to lower demand caused by the COVID-19 epidemic. The company noted that although there have been “no significant disruptions to Skyworks manufacturing operations to date, the current environment of demand for our products has been affected by disruptions in supply chains. global. ”
The semiconductor company is now forecasting revenue for the second fiscal quarter in the range of $ 760 million to $ 770 million, which would represent a year-over-year decline of between 5% and 6%. This compares to its previous revenue forecasts in the range of $ 800 million and $ 820 million, between a decrease of 1% and a gain of 1% compared to the quarter of the previous fiscal year.
Image source: Getty Images.
Net income should also suffer. Skyworks now expects non-GAAP diluted earnings per share (EPS) of $ 1.34 in the middle of its revenue forecast, down 9% from the quarter of the previous year. The company’s previous forecast forecast growth of around 1%.
In mid-February, Apple cut its own Q2 forecast due to the crisis. The tech giant said the global iPhone supply was “temporarily limited” due to a slowdown in manufacturing, while also citing weak demand in China, its second largest market.
This undoubtedly contributed to Skyworks ‘decision to lower its forecast, with radio chip sales to Apple accounting for around 51% of Skyworks’ net sales last year. It also derives 20% of its sales from China, the region most affected by the epidemic.
