Semiconductor maker Microchip Technology Inc (MCHP) raised its sales outlook for the fourth quarter, driven by strong demand for its products in Europe.
The company expects net sales to be flat to up 4 percent from the prior quarter, compared with a fall of 2 percent to 4 percent it forecast earlier.
Chief Financial Officer Gordon Parnell said it will be a "seasonally" strong quarter for Europe, while Asia, its biggest region in terms of revenue, would be sluggish as the company would be hurt by a period of inactivity during the Chinese New Year.
The European business contributed about 29 percent of sales in the year ended March 31, 2007, according to the company's latest annual report.
The company is seeing more of a broad rebound than they expected, particularly in Europe, American Technology Research analyst Doug Freedman said by phone.
Lehman Brothers analyst Romit Shah, in a research note, said Europe rebounded in the quarter and pointed out that there was strength in parts of Asia, particularly Taiwan and Singapore.
Microchip also raised the lower end of its fourth-quarter earnings forecast.
