Oct 26(Reuters) - Oct 26 (Reuters) - German chip equipment supplier Siltronic improved its sales outlook on Thursday based on stronger revenue expected in the fourth quarter, forecasting a less severe slump this year than previously feared.
The company now expects sales to drop by up to 17% this year, versus a previously forecast fall of up to 19%.
The provider of silicon wafers for the semiconductor industry reported a 26% drop in its third-quarter sales to 349 million euros ($368 million).
"Siltronic delivered a good Q3 beating consensus estimates across the board despite the continued demand weakness as a result of the inventory correction at semi-manufacturers", says Jefferies' analyst Constantin Hesse.
Despite the weakened demand, Q4 sales are expected to be better on a quarterly basis indicating a potential low point in Q3, he added.
Persons:
Siltronic, Jefferies, Constantin Hesse, Paolo Laudani, Rachel More, Toby Chopra
Organizations:
Thomson
Locations:
Frankfurt, Gdansk