Microchip Technology told investors late Monday that the company’s December quarter results will miss their prior forecast.
“The weakening economic environment that our customers and distributors faced during the December 2023 quarter resulted in many of them wanting to receive a lower level of shipments as they took actions to further de-risk their inventory positions,” CEO Ganesh Moorthy said in a news release.
Microchip
stock fell by 5.4% to $81 in after-hours trading.
For the December quarter, Microchip now expects revenue to drop 22% versus the prior quarter, compared the company’s prior guidance of down 15% to down 20%. Wall Street’s consensus estimate called for a revenue decline of 17% quarter over quarter.
Microchip isn’t the only chip company announcing disappointing news this month. Last week, Mobileye shares dropped after it warned the company’s first-quarter revenue would decline by 50% versus the prior year, when Wall Street had expected an increase. Mobileye blamed a buildup of inventories of its EyeQ computer chips at auto makers who use the semiconductors.
Microchip sells the basic chips that go into products in nearly every sector. It has more than 125,000 customers across the industrial, automotive, consumer, defense, communications, and computer markets.
Write to Tae Kim at [email protected]
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