CHANDLER, Ariz., March 02, 2020 (GLOBE NEWSWIRE) -- (NASDAQ:MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected and secure embedded control solutions, is providing the following business update:
As Microchip closely monitors the impact of the COVID-19 virus, our top priority remains the health and safety of our employees and their families. We have implemented a strict policy on travel to and from affected regions and quarantine procedures for employees returning from such regions. At this point, none of our over 18,000 employees or their family members have tested positive for COVID-19.
On February 4, 2020, as part of our fourth quarter fiscal 2020 earnings call, we issued quarterly net sales guidance of up 2% to 9% sequentially, which was a wider than usual range, to reflect uncertainty related to the public health situation in China. Our business in the Americas and Europe is trending towards our original expectations. However, we see very weak demand in Asia, especially in China, driven by the COVID-19 fears, and customers returning to work at a slower pace than anticipated. Our supply chain is also returning to normal operations at a slower pace than we anticipated when we last spoke publicly about this at the Goldman Sachs Technology and Internet Conference on February 12, 2020. Based on our current assessment, we expect our net sales for the fourth quarter of fiscal 2020 to be about flat sequentially. We are not able to provide updated earnings per share (EPS) guidance at the current time and we are withdrawing our prior EPS guidance.
As conditions evolve, Microchip will continue to act to help ensure the health and safety of our employees worldwide during this difficult period. Our employees in China, Hong Kong, Korea and other deeply affected countries are working from home and going to great lengths to keep Microchip's business running and serving our customers. We are grateful for the effort of our worldwide employees and their families.