Microchip Technology stock slips after FQ3 revenue miss By Investing.com

© Reuters. Microchip Technology (MCHP) stock slips after FQ3 revenue miss

Microchip Technology (NASDAQ:) saw its shares slip 2% in after-hours trade after the company’s Q3 revenue missed expectations.

The company posted third-quarter earnings per share (EPS) of $1.08, beating the consensus projection of $1.05. Revenue came in at $1.77 billion, just below the estimated $1.78 billion.

Microchip reported a non-GAAP gross profit margin of 63.8% for the quarter, with operating income at $728.1 million, representing 41.2% of net sales. Net income stood at $592.7 million.

MCHP also announced a record quarterly dividend of $0.45 per share, or $1.8 on an annualized basis. This represents a 25.7% increase the same quarter last year.

“Our December quarter performance fell short of our November guidance, primarily due to weaker business conditions,” said Ganesh Moorthy, President and CEO of Microchip.

“Revenue declined 21.7% sequentially as weak demand drove customers to cut shipments and extend shutdowns to further de-risk their inventories, which prevented us from fulfilling previously planned shipments from backlog.”

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