Wyle Joins Hi-Tech Firms in Earnings Squeeze

Add Wyle Electronics to the growing list of companies who say they are feeling the pinch from excess inventories in the semiconductor industry.

The company, which markets semiconductors and computer products, said it expects third-quarter earnings to fall below the 80 cents a share earned in the third quarter last year, and to be significantly lower than second quarter net income of $11.1 million, or 86 cents a share. Revenue for the quarter ending Sept. 30 should be 5% to 10% below second-quarter revenue of $306.9 million, the company said. Wyle said the semiconductor business has been hurt by customers reducing excess inventory levels in response to shorter product lead times.

On Tuesday, Richey Electronics, a wholesaler of electronic parts, said third-quarter results would fall short of analysts’ estimates because of a downturn in orders from computer and telecommunications manufacturers.