May 1 (Reuters) – Thursday's monolithic power system reported weaknesses in its major enterprise data segment that is in line with AI applications, and the scope of concerns about the demand for its products is an essential fixture in modern data centers.
The Washington-based Kirkland counts AI ChIP heavyweight NVIDIA among its customers, and the company reported sales down nearly 17% to $132.9 million, which provides power management tools for AI data centers.
However, Monolithic is expected to increase revenue from the segment in the second half of this year.
The company's stock fell about 3% in after-hours trading as sales in key sectors fell positive forecasts for the quarter.
It forecasts revenue in the second quarter between $640 million and $660 million. According to data compiled by LSEG, analysts expect an average of $636.1 million.
Its first-quarter revenue grew nearly 40% to $637.6 million, compared with an estimated $634.3 million, which contributed to growth in the “storage and computing” and automotive sectors.
In chip industries such as automotive and consumer electronics, analysts broadly expect to include customer orders into the first quarter of the year in a bid to impose steep tariffs from U.S. President Donald Trump.
“We continue to invest in new technologies, expand into new markets and diversify our end-market applications and global supply chains. This will allow us to seize future growth opportunities, maintain supply stability, and quickly adapt to market changes,” the company said.
Quarterly adjusted profit was $4.04 per share, and estimated $4.01 per share. (Reported by Priyanka.g and Arsheeya Bajwa in Bangalore; Edited by Shailesh Kuber)
