Microchip Technology (NASDAQ:MCHP) released today its preliminary revenue results for the three months ending December 31, 2023.
Despite providing guidance on November 2, 2023, indicating a sequential decline in revenue of 15% to 20%, the company now expects a greater downturn.
“The weakening economic environment that our customers and distributors faced during the December 2023 quarter resulted in many of them wanting to receive a lower level of shipments as they took actions to further de-risk their inventory positions," said Ganesh Moorthy, President and Chief Executive Officer.
Hence, MCHP sees the December 2023 quarter revenue declining sequentially by approximately 22%.
"Many customers also had extended shutdowns or closures at the end of the December quarter as they managed their operational activities. The impact of these and related factors was that certain backlog that we had planned to ship when we provided our guidance on November 2, 2023 did not ship to customers before the end of the December quarter.”
MCHP stock fell 4.3% on the news.