Microchip Technology Q1 Results Miss Estimates; Q2 Outlook Weak

(RTTNews) - Microchip Technology Inc. (MCHP) reported net income for the first quarter of $130.7 million or $0.60 per share, compared to $89.9 million or $0.40 per share for the year-ago quarter.

Excluding items, adjusted net income for the first quarter was $148.9 million or $0.69 per share, compared to $151.6 million or $0.68 per share in the prior year quarter.

net sales for the first quarter rose 1% to $533.95 million from $528.88 million a year earlier.

Analysts polled by Thomson Reuters expected the company to earn $0.71 per share on revenue of $556.86 million for the first quarter. Analysts' estimates typically exclude special items.

Microchip also said that it has completed its acquisition of Micrel Inc. for a combination of about $430 million in cash and the issuance of about 8.63 million shares of Microchip common stock.

Looking forward to the second quarter, the company forecasts adjusted net sales of $532 million to $569 million and adjusted earnings of $0.58 to $0.66 per share. Analysts currently expect the company to earn $0.76 per share on revenue of $575.36 million for the second quarter.