Microchip Technology Gains on Improved Sales For December

Microchip Technology shares rise in late trade after reporting better-than-forecast sales for December.
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Shares of Microchip Technology (MCHP) - Get Report  rose in after-hours trading Monday after the company said it had seen better-than-forecast sales for December and an improved backlog for the current quarter.

The stock gained $4.55, or 4.4%, to $108.28.in after-hours trading.

Microchip Technology said it now expects consolidated net sales for the December quarter to be between $1.281 billion to $1.288 billion, down between 3.75% and 4.25% sequentially. A month ago the company said it was expecting consolidated net sales to be $1.244 billion to $1.298 billion, or down between 3% and 7%.

“Based on several inflection points we are seeing in the business, we believe that the December 2019 quarter was the bottom of this cycle for Microchip, barring any negative developments on the U.S./China trade front or unexpected fallout from geopolitical events,” said Steve Sanghi, Microchip’s CEO, in a statement. “Microchip is seeing strength coming from all major geographies including the U.S., Europe and Asia, as well as several major end markets including data center, industrial and automotive,” Sanghi added.