Microchip Technology shades to high end of 3Q view

AP News
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Posted: Nov 30, 2009 8:05 PM

Microchip Technology Inc. said Monday that business is going well in its fiscal third quarter and it expects its profit and revenue to come in at the higher end of its previous forecasts.

The company said its expects a profit of 29 cents per share in the quarter ending Dec. 31. Excluding one-time costs, that increases to 35 cents per share. Microchip Technology had said it expected a profit of 27 to 29 cents per share, or 33 to 35 cents per share excluding one-time items.

Microchip Technology now expects revenue will grow 6 to 8 percent compared to the prior quarter, up from 4 to 8 percent. The company reported $226.6 million in revenue in the third quarter of fiscal 2009, so its new forecast implies $240.3 million to $244.8 million in revenue.

According to Thomson Reuters, analysts expect a profit of 29 cents per share and $241 million in revenue. Analyst outlooks usually exclude one-time items.

The company said the first two months of the quarter have been good, with profit margins at the high end of its expectations, and operating costs near the lower end.

In aftermarket trading, Microchip Technology shares rose 15 cents to $26.39.