Monday, October 15, 2012

Microchip warns of revenue shortfall

CHANDLER, Ariz. (AP) ? Chipmaker Microchip Technology Inc. said Monday that its sales for the quarter that ended two weeks ago were below its expectations, due to economic and industry conditions.

The Chandler, Ariz., company now expects revenue of $407 million to $408 million. On Aug. 2, it saw revenue in the $412 million to $430 million range.

Microchip shares fell 96 cents, or 3 percent, to $31.24 in extended trading, after the warning.

"The overall global economic outlook continues to be poor and is adversely impacting our business as well as the rest of the semiconductor industry," said Steve Sanghi, Microchip's CEO.

Analysts were on average expecting revenue of $420.6 million, according to FactSet. In the same quarter last year, Microchip sales were $341 million.

Microchip Technology is scheduled to report earnings for its fiscal second quarter on Nov. 8.

Its chips go into a wide range of products; including cars, medical devices and computers.

Source: http://news.yahoo.com/microchip-warns-revenue-shortfall-212539787--finance.html

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