Shares of mid-cap semiconductor maker Microchip Technology (MCHP) are rising this morning despite the company slightly missing sales estimates last night and forecasting the current quarter below expectations. There seems to be some relief on the Street that profit is holding up despite worries that weak consumer spending will hit gadget sales, hurting diverse analog chip makers like Microchip. Sales of $268 million were shy of analysts’ average estimate of $270 million, while profit per share of 40 cents met the average estimate. For the September quarter, Microchip forecast “flat to up 3%” sequential increase in sales, which would put it below the average $278 million estimate. A forecast profit range of 40 cents a share to 41 cents a share would just meet the average 41-cent estimate on the top line. However, the company managed to hang onto its margins, with gross profit coming in at 61%, up slightly from 60.9% in the prior quarter, and it forecast gross profit of 61% to 61.1% for the current quarter. Complete Story » ...
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