CHANDLER, Ariz.--After postponing its business update last week, Microchip Technology Inc. today left its revenue estimate for the current fiscal quarter unchanged, at $136-to-$141 million in the period ending Sept. 30. The guidance shows Microchip expecting revenues to sequentially decline 2% or rise 1.5% from $138.9 million in the prior fiscal quarter.
Microchip delayed the release of its update last week after U.S. stock markets were shut down following Tuesday's terrorist attacks in New York City and Washington.
"We believe that the rate of decline in distributor inventories observed at this stage should allow Microchip's channel inventory to be at or close to targeted levels by the end of the quarter," said Steve Sanghi, president and CEO of Microchip.
"We are anticipating sequential revenue growth in our microcontroller and analog product lines this quarter," said the chief executive. He said the overall rate of design activities "continues to be positive."
For the second fiscal quarter, ending Sept. 30, Microchip said it expects gross margins to be within the previous guidance of 50%. Earnings per share for the second fiscal quarter are projected to be $0.15-to-$0.17 per share, compared to $0.16 per share in the prior quarter.
The Chandler-based chip maker said its R&D, capital spending, depreciation, tax rate and cash flow estimates remain unchanged from its previous guidance.