Microchip Technology earnings drop 5 percent in 1Q
CHANDLER, Ariz.—Microchip Technology Inc. Thursday reported net income for its latest quarter that fell 5 percent from a year ago. The company cited challenging economic conditions.
The Chandler-based chip maker earned $76.3 million in the fiscal first quarter, which ended June 30, down from $80.3 million in the same period a year ago. Earnings per share were 40 cents in the most recent quarter, up from 36 cents a year ago, when more shares were outstanding.
The latest earnings matched the average forecast of analysts surveyed by Thomson Financial.
Sales were $268 million, up 1.6 percent from $264 million in the prior year's first quarter.
"I am very proud of the results we achieved despite a very challenging business environment," said Steve Sanghi, Microchip's president and CEO.
He said the company continues to be "very cautious" because of continued weakness in the U.S., the strong euro and the effects of high energy prices globally.
The company expects sales in the current quarter, ending in September, to be flat to up 3 percent from the previous quarter, with earnings of 40 cents to 41 cents per share.
Analysts had expected earnings of 41 cents per share for the fiscal second quarter, on $278 million in sales, $2 million above Microchip's range.
Microchip shares were up $1.85, or 6.1 percent, at $32 in extended trading after the release of the results.
Microchip declared a quarterly cash dividend of 33.8 cents per share, payable Aug. 21, 2008 to stockholders of record on Aug. 7, 2008. The dividend for the previous quarter was 33 cents.
