SAN JOSE, Calif. (AP) — Microchip maker Cavium Inc. cut its third-quarter revenue outlook late Thursday, citing sluggish demand.
Shares of the company sank $3.46, or 11.1 percent, to $27.75 in after-hours trading. The stock had fallen $2.06, or 6.2 percent, to close at $31.21.
Cavium is now looking for revenue that is 4 to 6 percent lower than the $71.6 million it reported in the second quarter — or between $68.7 million and $67.3 million. Analysts polled by FactSet are expecting $73.7 million in revenue.
In August, Cavium had predicted revenue would rise 2 to 3 percent from the second quarter to between $73 million and $73.7 million.
The company said the change resulted from lower-than-anticipated enterprise and software services revenue.