CHANDLER (dpa-AFX) - Microchip Technology Inc. (MCHP), Thursday lowered its second-quarter outlook, as sales of the analog chip maker failed to meet targets as anticipated earlier.
The Chandler, Arizona-based company now expects second-quarter earnings in a range of $0.38 to $0.40 per share, below its prior estimate of $0.44 to $0.48 per share.
Microchip Technology, a microcontroller, analog and Flash-IP solutions provider, also lowered its adjusted earnings guidance range to $0.45 - $0.47 per share from its previous forecast of $0.50 - $0.54 per share.
On average, 12 analysts polled by Thomson Reuters currently expect earnings of $0.52 per share for the quarter. Analysts' estimate typically exclude unusual gains and losses.
Microchip now expects second-quarter net sales at about $340.6 million, down from a previous estimated range of $352.0 million to $370.8 million. Analysts currently expect sales of $362 million for the quarter.
Chief Executive Steve Sanghi said, 'Entering the September quarter we anticipated that business conditions would continue to be impacted by weak, broad-based demand conditions, but would begin to improve towards the latter part of the quarter from the seasonal Christmas builds in Asia. Instead we experienced incrementally stronger headwinds and saw no seasonal Christmas build, which in turn adversely impacted all of our product lines and sales channels.'
The company said its two facilities located in flood affected Bangkok, Thailand, are running normally and meeting customer demand.
Microchip is scheduled to report its second quarter earnings result on November 3, 2011.
MCHP closed Thursday's trading on the Nasdaq at $35.31, up $0.85 or 2.47%. However, the stock lost $0.61 or 1.73 percent in after-hours trade. Trading volume for the day was 3.7 million shares.
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