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Ichor Holdings Ltd (NASDAQ:ICHR) shares slumped Wednesday after the company announced preliminary results for the fourth quarter, with revenue missing Wall Street expectations.
The company said it expects revenue for the fourth quarter to be $300 to $302 million, representing year-over-year growth of approximately 5% but a sequential decline of roughly 15%. It was also below consensus expectations of $335M.
Ichor shares are currently down more than 7% on the news.
In addition, it sees total cash growing to approximately $82M at year-end.
Jeffrey Andreson, Ichor’s chief executive officer, said that as the firm progressed through the quarter, it “became evident that the areas of weakness in wafer fab equipment, particularly those related to memory spending, have resulted in further reductions in near-term demand from our customers.”
As a result, the company is experiencing quarter-over-quarter revenue declines that are “modestly higher” than expected.
Meanwhile, for the first quarter of 2023, revenue is seen from $210 to $240M.
“At this time, we do not expect similar levels of sequential declines beyond the first quarter,” added Andreson. “During this period, we will continue to demonstrate our ability to manage the cost structure of the business through the cycles and deliver solid financial results and cash flow generation.”
