ASM International falls short and chipmakers stay in downdraft

|By:, SA News Editor

Adding to general chip-industry malaise today, ASM International (OTCQX:ASMIY) has reported Q1 earnings where profit margin fell and sales disappointed management.

"Our sales were at the lower end of our guidance while order intake was at the higher end of our guidance. The gross margin in Q1 at 38% was impacted by an unfavorable product mix and costs related to our preparation for further growth," says CEO Chuck del Prado.

Shares are now down 3.7%.

Earlier, Taiwan Semiconductor (TSM -6.2%) cut its guidance with a strong pointer to iPhone (NASDAQ:AAPL) weakness, and the combined news has weighed on chipmakers today. Apple's now off 2.4%.

Still lower on the day: INTC -3.2%; AMD -3%; NVDA -3.6%; STM -4%.

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