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.