Nikon the manufacturer of cameras and precision equipment for the manufacture of processors, is fast becoming a “problem’ Company during the current downturn, despite a surge in demand for mirrorless cameras.

Overnight the Japanese camera Company witnessed their biggest fall in stock value when their shares tumbling 21% after they reported a steep fall in profits, they also cut its outlook on precision equipment.

Net income fell 78% in the quarter ending in June, hurt by lower take up of its lithography systems, used to make legacy chips.

They also slashed its full-year profit outlook by 20% on its precision equipment.

Nikon shipped a total of four lithography machines in the June quarter, compared with a total eight last year.

First-quarter revenue increased 8.6% from a year earlier to Y158.15 billion due to strong sales of cameras and medical equipment as well as the acquisition earlier this year of German maker of 3D metal printers SLM Solutions Group.

The company lifted its full-year sales forecast above consensus and stuck to its profit forecast, because of solid demand for its mirrorless cameras, coupled with easing of supply chain issues and a weak yen.

“The precision equipment and components segments were much weaker than expected due to clients delaying investments.

Nikon supplies major chipmakers including Intel and Taiwan Semiconductor Manufacturing although it’s overshadowed by ASML Holding NV in lithography machines, particularly in the cutting-edge segment.

The global chip industry is grappling with sluggish consumer spending on personal electronics including smartphones and PCs. TSMC, the world’s largest contract chipmaker, cut its full-year sales outlook in July, while its smaller US-based rival GlobalFoundries Inc. also provided tepid sales guidance for the current quarter.