Microchip Technology Inc., Chandler, Ariz., posted profit and revenue increases in the fiscal third quarter, but warned of a rocky road ahead as a result of industry-wide corrections.
Net income for the third quarter ended Dec. 31, 2000 increased 62% to $42.8 million, or 34 cents per diluted share, compared to $26.4 million, or 22 cents per diluted share, in the same period last year.
Revenue for the quarter was $176.4 million, an increase of 36.5% from revenue of $129.2 million in the prior year's third quarter, and essentially flat with revenue of $176.3 million in the immediately preceding quarter.
"A broad-based inventory correction at distributor and OEM customers impacted our net sales in the third quarter," said Steve Sanghi, Microchip's president and chief executive, in a released statement. "We expect these market conditions to continue through the March quarter. As such, we expect net sales in the March quarter to be flat to down 2% to 3% from the December quarter."