Feb 5 (Reuters) – Chipmaker Microchip Technology forecast fourth-quarter profit below Wall Street estimates on Thursday, raising concerns about the impact of a memory-supply crunch on the wider semiconductor industry.
Shares of the Chandler, Arizona-based company fell more than 5% in extended trading.
A global shortage of memory supply has hammered the personal electronics industry, forcing smartphone makers and personal computer providers to cut back on orders as they struggle to ship finished products, hurting suppliers such as Microchip.
Microchip expects adjusted earnings of about 40 cents per share for the fourth quarter, compared with analysts’ average estimate of 48 cents per share, according to data compiled by LSEG.
It expects net sales in the range of $1.24 billion to $1.28 billion for the fourth quarter, compared with an estimate of $1.23 billion.
The company reported net sales of $1.19 billion for the third quarter, beating the $1.18 billion estimate.
Excluding items, third-quarter profit per share came in at 44 cents, while analysts expected 41 cents per share.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Pooja Desai)
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