Silicom Warns Of Q2 Revenue Shortfall

(RTTNews) - Silicom Ltd. (SILC) said Monday that it now expects second quarter revenues to be in the range of $16.8 million to $17.2 million, below the company's previous expectations.

Based on current demand and the schedule of new customer product launches, the company forecast third quarter revenues of $18 million to $19 million.

Analysts polled by Thomson Reuters currently expect the company to post revenue of $19.95 million for the second quarter and $21.77 million for the third quarter.

Shaike Orbach, Silicom's President and CEO, commented, "Our shortfall for the second quarter reflects a softening of demand from some of our customers, due to longer-than-expected decision making processes together with the slower market deployment of our high-potential design wins and our new solutions for upcoming industry trends. We expect that the second quarter will be the low-point of our revenues for the year and believe that the strategy that has worked extremely well for us for many years will continue to prove itself in the future."

Silicom will release its second quarter results on July 22.