Although tech stocks have bounced back somewhat this week after tumbling last week, many electronics companies are still reeling from the impact of COVID-19 coronavirus. The most notable is Netherlands-based NXP Semiconductor, which warned earlier this week it will lower its first 2020 quarter revenue projections due to fallout from the virus.
"What we have seen is lower-than-expected sell-through and order push-outs in both our distribution channel and with direct customers," said NXP CEO Richard Clemmer in a note to investors. "While we have not seen any material order cancellations, we currently expect the impact to revenue in the first quarter to be in the range of $50 million to $150 million. We need to stress that these assumptions are based on less than perfect data, as the situation in China continues to be highly fluid.”
In its early February guidance, NXP projected sales of $2.23 billion for the current quarter.
Several other companies also recently lowered their current quarter guidance due to coronavirus.
Microchip, of Chandler, Arizona, said in a statement late Monday its revenue for the current quarter is expected to be flat sequentially, due to weak demand in Asia, particularly China, with workers returning to work later than usual after recent holidays. Also, electronics manufacturer Plexus cut its fiscal second-quarter sales outlook from $830 million to $790 million due to the coronavirus outbreak.