Dive Brief:
- A cyberattack targeting Microchip Technology in August resulted in total expenses of $21.4 million during the company’s second quarter of fiscal 2025, the Arizona-based chipmaker said Tuesday in its quarterly report for the period ending Sept. 30.
- “The majority of this cost is attributed to incremental factory underutilization charges resulting from a cybersecurity incident,” SVP and CFO Eric Bjornholt said Tuesday during the company’s earnings call.
- Microchip initially disclosed the attack in an August securities filing and reported disruptions to its operations, order fulfillment and manufacturing. The company said it recovered quickly as it brought critical IT systems back online and resumed operations within days of the attack.
Dive Insight:
The financial impact of the cyberattack on Microchip’s quarterly results highlights how the company determined the impact to its business. “The incident did not materially impact our financial condition or results of operations,” Bjornholt said during the earnings call.
Microchip banked $78.4 million in net income on $1.16 billion in revenue during the quarter. Expenses attributed to the cyberattack represented less than 2% of total revenue during the quarter.
The company did not provide further information about data stolen from the attack and potential downstream impacts. Microchip previously said the unidentified attacker stole data from the company’s IT systems, including employee contact information and some encrypted and hashed passwords.
Microchip has about 125,000 customers across the industrial, auto, aerospace and defense, communications and computing markets.
Source link
