Knowles (NYSE: KN) reported Q1 EPS of $0.03, $0.01 better than the analyst estimate of $0.02. Revenue for the quarter came in at $163.1 million versus the consensus estimate of $162.42 million.

“We reported first quarter revenues and earnings that were in line with our updated guidance,” said Jeffrey Niew, president and CEO of Knowles. “Audio sales were lower than the year ago period partially offset by higher Precision Devices sales. While Q1 Audio demand was weaker than our original projections due to COVID-19, much of the weakness hit later in the quarter. We are anticipating sequentially lower Audio sales driven by significantly weaker hearing health demand in Q2. We also experienced disruptions within Knowles’ manufacturing operations across Asia, which negatively impacted plant productivity within our Audio segment during the first quarter. We have made progress in returning our China facilities to more normalized operations but expect lower labor productivity and factory utilization in Malaysia and the Philippines to continue in the second quarter as we manage government-enacted workforce restrictions associated with the pandemic and align output with demand.”

“As we navigate the challenges brought forth by the virus, we continue to focus on the health and safety of all our employees, customers and partners worldwide. We are fortunate to be able to approach the uncertainty and challenges in the second quarter from a position of strength given our strong balance sheet and liquidity. We are taking steps to reduce our costs, while continuing to invest to support future growth when markets return to a more normalized level. Our company remains uniquely positioned across the markets we serve and I believe our strategy to deliver high value, differentiated solutions to a diverse set of growing end markets will position us to take advantage of future growth,” continued Niew.

For earnings history and earnings-related data on Knowles (KN) click here.