By Sruthi Ramakrishnan
Feb 25 Chipmaker Avago Technologies Limited
said it expects current-quarter sales to decline 3-6
percent from the first quarter as it lost revenue from a
smartphone maker, which analysts said could be Apple Inc
The company, which designs and develops analog
semiconductors, said in a statement on Tuesday the revenue
decline was due to annual product transition at a "major
smartphone OEM customer."
Avago did not name the manufacturer in the statement. Its
customers also include Samsung Electronics Co Ltd
and LG Electronics Inc.
"I believe they are referring to Apple and the seasonal
nature of the Apple's handset and iPad production schedules,"
RBC Capital Markets analyst Doug Freedman told Reuters.
D. A. Davidson & Co analyst Thomas Diffely said it was a
combination of weak sales at Apple in the fourth quarter and
slowing sales of Samsung's phones ahead of the launch of the
company's new Galaxy phone.
Apple, which accounted for more than 10 percent of Avago's
revenue for the year ended Nov. 3, reported lower-than-expected
iPhone sales in the holiday quarter.
While Apple is widely expected to launch a new iPhone as
early as next year, Samsung will roll out its Galaxy S5
smartphone globally on April 11.
Avago gets nearly half its revenue from its wireless
business, which makes radio frequency, power amplifier and other
chips used in smartphones.
The company's net income rose to $134 million, or 53 cents
per share, in the quarter ended Feb. 2, from $125 million, or 50
cents per share, a year earlier.
Excluding items, the company earned 84 cents per share.
Revenue rose 23 percent to $709 million.
Analysts on average had expected earnings of 78 cents per
share on revenue of $705.3 million, according to Thomson Reuters
Shares of the company were little changed in extended
trading after closing at $59 on the Nasdaq on Tuesday.