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What: Shares of chip specialist Vishay Intertechnology (NYS: VSH) fell by as much as 11% today before recovering into the close after announcing third-quarter earnings.
So what: Third-quarter revenue came in at $637.6 million, and earnings per share added up to $0.32. Both figures fell short of consensus estimates, which called for $640.8 million in revenue and a $0.35-per-share profit.
Now what: Fourth-quarter revenue is also expected to come up short, in the range of $555 million to $595 million, lower than the estimate of $605.1 million. Vishay CEO Dr. Gerald Paul said the company was "confronted with an unexpected drop of demand," particularly in the consumer market segment. He added that the company was able to adjust its manufacturing to avoid bloated inventories, but I'd be more concerned with the fact that top-line revenue and bottom-line net income are both shrinking.
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