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Microchip Technology forecasts revenue drop amid economic woes

EditorAhmed Abdulazez Abdulkadir
Published 09/01/2024, 09:00 am
© Reuters.
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CHANDLER, Ariz. - Microchip Technology Incorporated (NASDAQ: NASDAQ:MCHP), a prominent provider of embedded control solutions, has released preliminary revenue results for the fiscal third quarter ended December 31, 2023, indicating a steeper than expected decline due to a challenging economic climate.

The company's President and Chief Executive Officer, Ganesh Moorthy, stated that the preliminary figures suggest a sequential decrease of approximately 22% in revenue for the December quarter. This is a downturn from the previously guided range of a 15% to 20% decrease, as announced on November 2, 2023.

Moorthy attributed the shortfall to a variety of factors, including extended shutdowns and closures among customers managing operational activities, and a general desire among customers and distributors to receive fewer shipments as they sought to mitigate inventory risks. These conditions prevented the company from shipping certain backlogged orders within the expected timeframe.

Microchip Technology plans to provide a detailed report of its financial results for the December 2023 quarter on February 1, 2024. On the same day, the company will host an earnings conference call at 5:00 p.m. Eastern Time, which will be available for replay until February 15, 2024.

Stockholders and interested parties can access a telephonic replay of the February 1 conference call, which will be available until February 15, by dialing the provided numbers and entering the access code 13742831.

This news article is based on a press release statement from Microchip Technology Inc . and does not contain any endorsements or subjective assessments of the company's market position or future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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