Shares in UK firm Wolfson Microelectronics fell yesterday, after the company warned its fourth-quarter orders aren't benefiting from the customary seasonal rise.
Company CEO David Milne said: "The market is however becoming more conservative in forecasting and managing inventory levels as evidenced by a shortening of customer order cycles. In common with other semiconductor companies, Wolfson has also noted a build-up of inventory in consumer electronics products."
Revenue from portable devices such as iPods climbed 66 per cent in the quarter, the company said.
Overall, revenue will be $52 million to $57 million in the quarter, the company said, observing that its customers, which include Apple, have become more "conservative" in the way they handle their inventories.
The company continues to experience strong growth at 22-25 per cent per year. It also revealed that its fourth quarter profit margins would be "at least" 51 per cent.