Microchip Technology flags 'potentially suspicious' network activity; stock slips

August 21, 2024 09:45 PM AEST | By Investing

Google News:

Microchip Technology flags 'potentially suspicious' network activity; stock slips

Recent News

Wemade Max’s ‘Lost Sword’ Sets Global Launch with Over 500,000 Pre-reg...

AI Crosses the Trust Threshold: Half of all Consumers Embrace it for C...

Gradiant Announces World’s First Fully Integrated Lithium Production F...

Apromore Named Leader and Star Performer in Everest Group’s 2025 Proce...

Investing.com -- Microchip Technology said Tuesday it detected potentially unauthorized activity on its network systems that had disrupted operations at certain of its facilities.

Microchip Technology Inc (NASDAQ:MCHP) fell 3% in after-hours trading following the news, but by Wednesday's premarket, these losses were reduced to less than 1%.

The company said it had detected "potentially suspicious activity involving its information technology systems," on Aug. 17, and a few days later on Aug. 19 found that an "unauthorized party disrupted the company’s use of certain servers and some business operations."

The company is working to bring the affected portions of its IT systems back online, "restore normal business operations and mitigate the impact of the incident," Microchip said, as certain manufacturing facilities are now operating at less than normal levels following the incident.

The impact of the incident are not yet known, the company said, adding that it can't yet "determined whether the incident is reasonably likely to materially impact the company’s financial condition or results of operations," it added.

"While this is unfortunate, it is also temporary and doesn’t have anything to do with inventory or demand," Citi analysts weighed in.

"With sales down roughly 50% from its peak, we continue to believe MCHP is shipping well below demand and anticipate a strong bounce in fundamentals," they added, reiterating a Buy rating on MCHP stock.

Yasin Ebrahim contributed to this report.

This article first appeared in Investing.com

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.