Microchip Blames Housing Weakness for FY Q2 Low Revs

Microchip Technology (MCHP) Monday afternoon warned that its revenues for the fiscal second quarter ended September 30 would be $258 million to $259 million, short of Street expectations of $267.3 million. EPS is expected to be 35 cents GAAP, 38 cents non-GAAP; the Street consensus had been 36 cents non-GAAP.

For the fiscal third quarter ending December, the company expects revenue to be down from the September quarter; that will be substantially below the current Street estimate of $274.5 million.

The company, which makes microcontrollers and other analog semiconductors, said results in the quarter were below expectations in both the U.S. and Asia. The company said “sales associated with the U.S. housing market continued to be weak,” and that there also was weakness in other consumer-related businesses. The Asian weakness was blamed on U.S. companies that manufacture at Asian subcontractors.

It will be interesting to see if the Street Tuesday extrapolates the miss to other analog semi producers.

In after hours trading, Microchip was off $1.92, or 5.2%, at $34.70.

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