Navigation and digital mapping company TomTom said its consumer and automotive revenue numbers would be affected by challenges due to chip shortage.
A global shortage in semiconductor chips has forced carmakers to halt production.
“Collectively we have underestimated how big the supply chain issues, and especially for semiconductor shortages, have been or have become,” TomTom Chief Financial Officer Taco Titulaer told Reuters.
TomTom’s consumer and automotive revenue numbers would continue to be affected by these challenges.
TomTom said the recovery of its automotive division, which supplies maps and navigation software to carmakers, lagged expectations as it saw sales fall 21 percent in the third quarter.
The consumer business, which sells automotive hardware such as portable navigation devices, saw a decline of 24 percent in the quarter.
The group’s enterprise business, which provides maps, traffic information and navigation software to tech firms like Uber and Microsoft, saw sales grow 8 percent because of contract expansions from previous periods.
TomTom reiterated its 2021 revenue guidance, but said it would likely come in at the lower end of its 500-530 million euro range. It also lowered its annual free cash flow guidance from around 5 percent to around 2 percent of total revenue.
The Amsterdam-based company reported a third-quarter loss of 5.3 million euros ($6.1 million).