* Estimates Q2 adj rev of $407 million to $408 million
* Co says weak global economy impacting business
* Shares down as much as 5 pct after the bell
Oct 15 (Reuters) – Chipmaker Microchip Technology Inc
said second-quarter revenue was likely below its
earlier estimates due to soft demand in the chipmaking industry.
The company estimates second-quarter adjusted revenue of
$407 million to $408 million, down from its earlier forecast of
between $412 million and $430 million.
“The overall global economic outlook continues to be poor
and is adversely impacting our business as well as the rest of
the semiconductor industry,” Chief Executive Steve Sanghi said
in a statement.
Microchip Technology makes chip products used for a range of
embedded control applications.
ThinkEquity LLC analyst Sujeeva De Silva said the company’s
revenue estimate was a very mild cut and he expects the
Microchip to recover from this “very quickly.”
The weak economic environment and Microchip’s acquisition of
Standard Microsystems hurt second-quarter revenue, he added.
Earlier in the year, Microchip bought smaller rival Standard
Microsystems Corp for about $830 million, gaining
access to the lucrative market for electronics used in
automobile entertainment systems.
Microchip Tech shares fell as much as 5 percent to $30.53
after the bell on Monday. They closed at $32.20 on the Nasdaq.
The company is scheduled to announce second-quarter results
on Nov. 8.
