Microsemi Corp. on Tuesday announced lower sales for the fiscal third quarter, sending the stock into a tailspin.
The Irvine computer-chip maker's shares fell as much as $15, or 22.4%, to $52 after regular U.S. trading hours. The stock had closed at $67, up 55 cents a share, in regular Nasdaq trading before the financial results were released.
Microsemi said sales dipped to $59.5 million from $59.9 million as demand from technology and wireless communications companies waned. The sales figures excluded three units now closed. Including those units, sales were off 6.3% to $60.1 million.
Net income rose to $4.44 million, or 30 cents a share, from $2.82 million, or 22 cents a share, a year ago. Excluding acquisition-related expenses, profit would have been $4.89 million, or 33 cents a share. Analysts had anticipated earnings of 32 cents a share, according to a First Call/Thomson Financial survey.
Microsemi customers, like Compaq Computer Corp. and Seagate Technology Inc., cut orders for chips in computers, wireless telephones and other electronic products so they could work through existing inventory.
Microsemi expects fourth-quarter sales to be between $57 million and $61 million, said David Sonksen, the company's chief financial officer.
Demand for products it sells to medical and defense businesses, like Lockheed Martin Corp. and Boeing Co., has grown, the company said. Demand from computer and electronics companies and other "hard-hit" industries is expected to recover and "return to growth over the next two quarters," Microsemi said.