NXP, Lattice Semi, Cirrus Logic, Silicon Labs, Navitas Plunge As Cautious Chip Industry Outlook Weighs Down

Semiconductor earnings reported after the market closed on Monday did not go down well with investors as they sent stocks of these companies spiraling downward. The negative reaction largely reflected cautious commentary and sub-par near-term financial guidance.

NXP Semiconductor N.V. ($NXPI), Lattice Semiconductor Corp. ($LSCC), Cirrus Logic, Inc. ($CRUS),  Navitas Semiconductor Corp. ($NVTS) and Silicon Labs, Inc. ($SLAB) reported their September quarter results late Monday.

NXP Semiconductor: Dutch semiconductor manufacturer NXP reported third-quarter non-GAAP earnings per share (EPS) of $3.45, down from $3.70 earned a year ago. The bottom-line performance, however, surpassed the $3.43 per share consensus estimate.

Revenue fell 5% year-over-year (YoY) to $3.25 billion, which came in line with the consensus.

“While we experienced some strength against our expectations in the Communication Infrastructure, Mobile and Automotive end markets, we were confronted with increasing macro related weakness in the Industrial & IoT market,” the company said in a statement.

For the fourth quarter, NXP expects revenue of $3.00 billion-$3.20 billion and non-GAAP EPS of $2.93-$3.33. This missed the consensus estimates of $3.37 billion and $3.64, respectively.

Kurtis Sievers, NXP’s president and CEO blamed the sub-par outlook to broader macro weakness especially in Europe and the Americas that has rendered the demand environment uncertain.

Lattice Semi:  Lattice Semi’s third-quarter non-GAAP EPS was $0.24, which excluded a $6.5 million charge related to spending cuts. Revenue fell nearly 34% YoY but rose 2.4% sequentially to $127.09 million.

The top- and bottom-line were in line with the consensus.

Gross margin came in at 69%.

Lattice Semi’s CEO Ford Tamer warned of continued near-term industry headwinds but expressed confidence in building on the company’s solid foundation. 

The company expects fourth-quarter revenue and non-GAAP EPS of $112 million to $122 million and  $0.15-$0.23, respectively. Analysts, on average, expect the metrics to come in at $122.1 million and $0.21, respectively.

Cirrus Logic:  Austin, Texas-based Cirrus Logic, a provider of mixed-signal processing solutions for mobile and consumer applications, said its second-quarter non-GAAP EPS climbed from $1.80 to $2.25, exceeding the $2.02-per-share consensus estimate. 

Revenue grew both YoY and sequentially to $541.86 million versus the $520.44 million estimate. Both top- and bottom-line performances marked records for the September quarter.

The company guided third quarter non-GAAP EPS to $2.25 and revenue to $541.9 million, missing the consensus estimates of $2.30 and $563.13 million.

Silicon Labs: Fabless semiconductor company Silicon Labs, also based out of Austin, Texas, reported revenue of $166 million and a non-GAAP loss per share of $0.13. Wall Street analysts were looking for revenue of $165.5 million and a wider loss of $0.20 per share.

Matt Johnson, CEO of Silicon Labs said, "Looking ahead, progress on inventory destocking and demand recovery remains uneven across our end markets. Despite the uncertain market backdrop in the near-term, we remain well-positioned for long-term growth and market share expansion."

Looking ahead, the company expects fourth-quarter revenue of $161 million to $171 million and a non-GAAP loss of $0.01-$0.21. This surrounded the consensus estimates that call for revenue of $166.12 million and a loss of $0.11 per share.

Navitas: Torrance, California-based Navitas, a pure-play power-semiconductor company, said its third-quarter non-GAAP loss widened from $0.04 per share a year ago to $0.06 per share. The bottom-line result, however, met the consensus estimate.

The company reported third-quarter revenue of $21.7 million, down from last year’s $22 million and missing the consensus estimate of $21.93 million.

CEO Gene Sheridan said, “Despite macro-economic challenges, we continue to grow faster than the market.”

Navitas announced a cost reduction plan that involves the elimination of 14% of the global workforce, or about 45 employees. It expects the plan to save $2 million per quarter and streamline the organization with increased focus on artificial intelligence data center, electric vehicles and mobile applications.

The company expects fourth-quarter revenue of $18 million to $20 million, and non-GAAP gross margin of 40%, plus or minus 50 basis points. The revenue guidance trailed the $22.5-million consensus estimate.

As of 10:06 am ET, NXP shares fell 6.08% to $222.51, Lattice Semi slipped 4.35% to $49.63, Cirrus Logic shed 6.08% to $103.90, Silicon Labs edged down 0.43% to $104.29 and Navitas plummeted 9.39% to $2.37.

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