Impinj Battles Revenue Projections and Weak Retail Sector
Impinj, the renowned manufacturer of tracking chips used in retail goods, has projected below-consensus revenue for the upcoming third quarter. Chief Executive Chris Diorio attributes this disappointing outlook to the company’s struggles with inventory reduction and the prevailing weakness in the retail sector. What adds to Impinj’s woes is the fact that analysts were expecting adjusted earnings, but instead, the company forecasts an adjusted loss. Consequently, the company’s shares have dropped by 16% to $66 during after-hours trading.
MaxLinear Faces Loss in Revenue and Cancels Acquisition Agreement
MaxLinear, a prominent player in the industry, has reported a significant loss in revenue during the second quarter. The company’s revenue saw a steep decline of 34%, falling to $183.9 million, which falls short of analyst forecasts of $190.4 million, as reported by FactSet. In an unexpected twist, MaxLinear has decided to scrap its agreement to acquire Silicon Motion Technology. Although Chinese regulators had approved the deal earlier that day, MaxLinear claims that certain closing conditions have not been met. Additionally, the Hong Kong-based Silicon Motion is grappling with an ongoing material adverse event, as defined by the agreement. As a result of these developments, MaxLinear’s shares have fallen by 10% to $26.67 in post-market trading.