05:12 PM EST, 12/02/2024 (MT Newswires) -- Microchip Technology ( MCHP ) said late Monday it expects its fiscal Q3 revenue to be close to the low end of its previously outlined guidance range of $1.03 billion to $1.10 billion, citing slower-than-projected turns orders.

Analysts polled by FactSet are looking for $1.06 billion.

The company expects to be able to shut down its Tempe wafer fabrication facility, or Fab 2, in the September 2025 quarter, at which time it expects that it will generate about $90 million in annual cash savings, interim Chief Executive Steve Sanghi said.

"Due to the high inventory of the products which are manufactured in Fab 2, we do not expect to see P&L savings from the shutdown until the start of the June 2026 quarter based on a first-in first-out basis," Sanghi said. "We anticipate near-term restructuring costs to be between $3 million and $8 million from these actions, and it is possible that we could incur other restructuring and shut-down costs in the future of up to an additional $15 million."

Microchip shares were down 3.4% in after-hours activity.