UPDATE 2-Microchip Technology posts lower Q2 results

miércoles 24 de octubre de 2007 01:39 CEST

(Adds analysts' comments, other details)

By Purwa Khandelwal

BANGALORE Oct 23 (Reuters) - Semiconductor maker Microchip Technology Inc (MCHP.O: Cotización) said second-quarter earnings fell nearly 24 percent due to weakness in the U.S. housing and consumer markets.

The company, which makes embedded chips used in an array of gadgets such as keyless locks and garage door openers, said it sold its idle manufacturing facility in Puyallup, Washington for $30 million, resulting in a charge of 7.4 cents a share in the second quarter.

About 7 percent to 8 percent of the company's revenue is exposed to housing-related applications like garage door openers, irrigation systems, air conditioning systems, and white good products, Morgan Keegan analyst Harsh Kumar said by phone.

For the second quarter, the company posted net income of $60.7 million, or 27 cents a share, compared with $79.5 million, or 36 cents a share, a year ago.

Net sales fell 3.5 percent to $258.6 million.

For the quarter, analysts on average were expecting earnings of 35 cents a share, before exceptional items, on revenue of $259 million, according to Reuters Estimates.

In a statement, the company said sales in Asia were flat quarter-to-quarter, while the Americas region was down 1 percent sequentially.   Continuación...