MALVERN, Pa. (AP) -- Vishay Intertechnology Inc., a maker of semiconductors and electronics components, said that its third-quarter profit fell nearly 56 percent on weak demand from computing and consumer markets.
The company, based in Malvern, Pa., has been struggling with weak orders for some time. Vishay makes semiconductors and components for electronic devices and equipment in a variety of customers, including industrial companies, autos, telecommunications, aerospace and consumer electronics. It has struggled for several quarters with a slowdown in consumer and computing markets.
Vishay said Tuesday that these markets "deteriorated substantially" during the third quarter and that it hurt its orders. The company also issued a disappointing full-year forecast based on these trends and a shift in taxes.
The company reported net income of $22.3 million, or 15 cents per share, for the quarter that ended Sept. 29. That is down from $50.5 million, or 31 cents per share, earned in the third quarter of last year. Its revenue fell to $572.8 million from $637.6 million, and gross margins slipped to 23.3 percent from 26.3 percent.
Vishay's CEO Gerald Paul, however, said the company will continue to pursue its growth plan. The company has increased its research and development staff and product engineering staff. It also plans to expand its manufacturing capacity and sales force in Asia.
The company now expects revenue of $500 to $540 million for its fourth quarter at a lower margin than its third quarter.