Freescale Semiconductor has lowered its quarterly outlook, ending 30 September.
The revised forecast says that net sales are going to decline six to eight percent from the previous quarter. This is blamed on weakness in the industrial and networking businesses, Freescale says, and is a drop from the initial three percent penned in.
Despite the stutter in sales, Freescale says that its gross margin will increase modestly from the previous quarter.
The revision has damaged Freescales shares, somewhat. Bloomberg’s anaylsts predicted average sales of $1.19 billion for the third quarter with a gross margin of 46.2 percent.
But shares declined by 4.1 percent on the New York Stock Exchange. Bloomberg reports stock had already dropped a total of 32 percent in the year, prior to the revised forecast.
The good news for Freescale is that earlier this year, it and Rambus stopped the patent scrap, and it is positioned well in the automotive market.