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Avago Technologies sees weak second-quarter revenue
February 26, 2013 / 11:46 PM / in 5 years

Avago Technologies sees weak second-quarter revenue

(Reuters) - Chipmaker Avago Technologies Ltd (AVGO.O) forecast lower-than-expected revenue for the current quarter, becoming the latest supplier for Apple products to warn of weak revenue this quarter.

Other suppliers such as Cirrus Logic Inc (CRUS.O), TriQuint Semiconductor Inc TQNT.O and Broadcom Corp BRCM.O have also forecast weaker-than-expected revenue for the current quarter.

Avago, which designs, develops and supplies analog semiconductors, sees second-quarter revenue falling 2 to 5 percent compared to the first quarter due to what it called a product transition at a large original equipment manufacturer (OEM).

Avago’s second-quarter forecast implies revenue of $547.2 million to $564.5 million for the quarter, well below analysts’ average estimate of $583 million, according to Thomson Reuters I/B/E/S.

RBC Capital Markets analyst Doug Freedman said the large customer was Apple Inc (AAPL.O). “The product (transition) is the transition of the iPhone 5 production to a yet-to-be-announced new handset design,” he said.

Separately, Avago said its Chief Financial Officer Douglas Bettinger resigned to pursue another opportunity. Anthony Maslowski, vice president and corporate controller, will be the interim CFO.

Foxconn Technology Group, Apple Inc’s (AAPL.O) largest contract manufacturer, accounted for 17 percent of Avago’s revenue in 2012.

In the first quarter, Avago’s net income remained unchanged at $125 million, or 50 cents per share, compared to a year earlier.

Excluding one-time items, the company earned 65 cents per share. Revenue rose 1 percent to $576 million.

Analysts on average expected earnings of 55 cents per share on revenue of $576.2 million, excluding one-time items.

Shares of the Singapore-based company were trading at $33.31 after the bell on Tuesday. They had closed at $33.13 on the Nasdaq.

(The story corrects company name to “TriQuint Seminconductor Inc” from ‘Semiconductor Inc’ in paragraph 2.)

Reporting By Aurindom Mukherjee in Bangalore; Editing by Anil D'Silva and Sreejiraj Eluvangal

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