Silicon Labs Slips Over 9% In Pre-market After Q2 Profit Plunges, Q3 Outlook Below View

(RTTNews) - Shares of Silicon Laboratories Inc. (SLAB) were trading down on Wednesday morning after the company posted a steep decline in its second-quarter earnings and revenue, reflecting a weak demand and excess customer inventory.

SLAB was trading down by 9.09 percent at $144.30 per share in the pre-market trading on the Nasdaq.

For the second-quarter, the company reported a profit of $10.956 million or $0.33 per share, compared with $22.135 million or $0.60 per share, registered for the same period a year ago. Revenue moved down to $244.866 million from $263.150 million of previous year.

Looking ahead, for the third-quarter, the semiconductor maker expects to report net income per share of -$0.08 to $0.20.

Excluding items, the company projects its earnings per share to be in the range of $0.45 to $0.73. On average, 10 analysts polled by Thomson Reuters expect the firm to earn $1.08 per share. Analysts' estimates typically exclude special items. Silicon Labs expects its third-quarter revenue to be in the range of $190 million - $210 million, below the analysts' estimates of $254.35 million.