The coronavirus outbreak has caused chipmaker Skyworks Solutions Inc. in Irvine to lower its revenue and earnings outlook, becoming the first local tech firm to set a downward revision attributed to the disease.
Skyworks (NASDAQ: SWKS) said Wednesday it expects second-quarter revenue of between $760 million and $770 million, compared to the prior outlook of between $800 million and $820 million. It projects adjusted and diluted earnings per share of $1.34 at the midpoint of the updated revenue range, down from $1.46, in the period ending March 27.
“This update reflects the unanticipated impact that the COVID-19 outbreak is having on the business environment,” the company said in a statement, using the official name of the coronavirus. Chief Executive Liam Griffin remained generally upbeat on Skyworks’ “ability to deliver strong profitability and cash flow.”
Skyworks last year got 51% of net revenue from Apple Inc., which has already warned of negative impact on results from the coronavirus.
Shares in Skyworks rose 1.8% to $101.43 a share to a $17.3 billion market cap