Microchip Cuts Q2 Sales Guidance - Quick Facts

(RTTNews) - Microchip Technology Inc (MCHP) said Thursday it now expects second-quarter sales to be about $546.2 million, down from prior guidance of $560 million to $575.9 million.

Analysts polled by Thomson Reuters expect the company to report sales of about $568 million for the quarter.

"We were disappointed with the level of business activity in the September quarter, which is usually a back-end weighted quarter because of a traditional weak August due to holidays in various parts of the world," said CEO Steve Sanghi.

"The month of September is usually a strong month for our revenue after the summer holiday period. This time, the September sales did not materialize to our expectations. The revenue miss was led by China where the September quarter is traditionally the strongest," said Sanghi.