SAN FRANCISCO—Microchip Technology Inc. said Monday (July 11) it expects sales for the quarter ended June 30 to be about $373.3 million, down 1.5 percent compared to the previous quarter.
Microchip (Chandler, Ariz.) previously said it expected sales to increase 1 to 5 percent sequentially.
“Our net sales activity in the June quarter did not progress as we originally expected,” said Steve Sanghi, Microchip’s president and CEO, in a statement.
A consensus of 16 financial analysts had projected Microchip's sales for the quarter to be about $393.5 million, according to Yahoo Finance.
Sanghi said Microchip is seeing "broad-based weakness" due to a number of factors, including a significant decline in automotive business and an inventory correction related to supply issues in the wake of the March 11 earthquake in Japan, poorer global economic conditions and lower than expected sales to the computing sector.
Microchip also announced that the company expects its net earnings in accordance with generally accepted accounting principles (GAAP) to be 47 to 49 cents per share, down from an earlier estimate of 52 to 55 cents. Non-GAAP earnings are now expected to be between 53 and 55 cents per share, down from an earlier estimate of 58 to 62 cents per share, Microchip said.
Consensus analysts' expectations had called for Microchip to report non-GAAP earnings of 60 cents per share, according to Yahoo Finance.
“We are cautiously modeling our September quarter revenue to be sequentially down by low to mid single digits," Sanghi said.
Microchip Technology, Sales, Sanghi Microchip warns it will miss sales target
No comments:
Post a Comment