Microchip Technology Raises Fiscal 2Q Guidance

CHANDLER, Ariz. (AP) — Microchip Technology Inc. on Tuesday raised its fiscal second-quarter guidance, citing good backlog and strong sales for the first two months of the period.

The company, which makes semiconductors used in automobiles, communications devices, home appliances and other products, said it now expects revenue between $216 million and $220 million for the quarter ending Sept. 30. That's up from its prior forecast, issued Aug. 9, for sales of $206 million to $214 million.

Analysts polled by Thomson Reuters, on average, expect quarterly sales of $211.3 million, with estimates ranging from $210 to $212.2 million.

Microchip Tech now expects profit for the quarter to fall between 20 cents and 22 cents per share. It previous projected profit between 18 cents and 20 cents per share.

Wall Street forecast the company to post profit of 20 cents per share, with estimates ranging from 19 cents to 21 cents.

The news gave a boost to shares in aftermarket trading. The stock closed the regular session up 36 cents at $27.08, then added 22 cents in late trading to $27.30.