LONDON – Mixed-signal fabless chip company Wolfson Microelectronics plc has issued a trading update notice stating that that second quarter revenues would come in at the lower end of previous guidance. The share price lost almost a quarter of its value on its opening on the London Stock Exchange Monday morning.
On April 27 Wolfson had guided the second quarter revenue would be between $37 million and $45 million and had said the broad range was the result of uncertainty over customers' product ramps and about the impact of the aftermath of the Japanese earthquake of March 2011.
Wolfson's trading note said that as a result of lower customer sales and delays in product introductions the company now expected 2Q11 revenue of between $37 million and $39 million.
Wolfson said it still anticipates an annual revenue growth rate for 2011 over 2010 in the range of 10 to 20 percent, with gross margin for the full year of around 50 percent.
Very interesting. Hopefully we don't see much of those industry-specific head winds Peter mentioned. The original guidance range is really very large, especially in percentage terms and apparently the somewhat optimistic upper end of the range just didn't happen.
I think Wolfson may have had some company-specific issues with regarding design wins and losses with specific companies. However, it could be a combination of company-specific and industry-specific head winds.
Is this the first such announcement we will see for a large number of tech companies? The companies with large consumer markets may run into similar issues. Wil it hit the FPGA guys? We should know soon...