SAN FRANCISCO (AP) — Silicon Laboratories Inc., a chip designer, said Wednesday that its net income slid on broad weakness throughout its businesses, but the results still topped Wall Street’s forecasts.
The company identified a division that makes chips for digital clocks as an area of strength. But other markets didn’t fare as well. Its shares fell in extended trading.
“While the macro-economic headwinds are still weighing heavily on the industry, we do expect our new product cycles to help us start outperforming our peers in the fourth quarter,” Necip Sayiner, Silicon Laboratories’ CEO, said in a statement. “I’m optimistic about the traction we’re getting with new products and believe that with the improved complexion of our business and continued focus on market share gains, we’ll benefit disproportionately when the market environment improves.”
Net income fell 38 percent to $11.3 million, or 26 cents per share, from $18.2 million, or 40 cents per share, a year ago.
The company earned 44 cents per share when certain items are excluded. Analysts expected 37 cents per share on that basis, according to FactSet.
Revenue fell 1 percent to $119.1 million, from $120.2 million a year ago. Analysts expected $117.1 million, according to FactSet.
The company cited “weakening demand across end markets.”
Silicon Laboratories said it expects fourth-quarter revenue to be down 3 percent to up 3 percent from the third quarter, which translates to a range of $115.5 million to $122.7 million. Analysts expected $121.1 million.
Shares fell $4, or 10 percent, to $36.49 in extended trading following the release of the earnings report.