Microchip sees 3Q sales below expectations

CHANDLER, Ariz.—Chip maker Microchip Technology Inc. said Tuesday it expects to report fiscal third-quarter sales declined 29 percent to 31 percent from the preceding period, missing Wall Street's expectations.

On average, analysts polled by Thomson Reuters expect sales of $231.7 million for the quarter ended Dec. 31, a 14 percent decline from fiscal second-quarter sales of $269.7 million.

The company also forecast earnings of 21 cents to 24 cents per share and adjusted earnings of about 23 cents to 26 cents per share.

Analysts expect a profit of 32 cents per share.

Semiconductor companies have taken a hit in the economic turmoil as demand for technology products has slowed. The company said it is continuing with a pay cut for all of its non-manufacturing employees worldwide.

Microchip plans to post the quarter's results on Jan. 29.

Shares fell 36 cents to $19.65 in after-hours trading following the release of the company's estimate. In the regular session, the stock rose 66 cents, or 3.4 percent, to $20.01.