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Microchip Technology Announces Record Net Sales and Financial Results

Mon, 11/04/2013 - 5:07pm
Microchip Technology
  • Record net sales of $492.7 million, up 6.5% sequentially and up 28.5% from net sales in the year ago quarter.
  • On a non-GAAP basis: gross margins of 59.0%; Record operating income of $156.6 million; Record net income of $136.4 million; and Record EPS of 63 cents per diluted share. The First Call published estimate for non-GAAP diluted EPS was 60 cents.
  • On a GAAP basis: gross margins of 58.6%; operating income of $117.5 million; net income of $99.8 million; and EPS of 46 cents per diluted share. There was no published first call estimate for GAAP EPS.
  • Record net sales of 8-bit microcontrollers, 16-bit microcontrollers, 32-bit microcontrollers and analog products.
  • Record licensing revenue of $24.8 million.

CHANDLER, Arizona - October 30, 2013 - (NASDAQ: MCHP) - Microchip Technology reported results for the three months ended September 30, 2013.

GAAP net sales for the second quarter of fiscal 2014 were $492.7 million, up 6.5% sequentially from net sales of $462.8 million in the immediately preceding quarter, and up 28.5% from GAAP net sales of $383.3 million in the prior year’s second fiscal quarter. GAAP net income for the second quarter of fiscal 2014 was $99.8 million, or 46 cents per diluted share, up 27.0% from GAAP net income of $78.6 million, or 37 cents per diluted share, in the immediately preceding quarter, and up from a GAAP net loss of $21.2 million, or a loss of 11 cents per diluted share, in the prior year’s second fiscal quarter. In the second quarter of fiscal 2014, GAAP net income included amortization of acquired intangibles of $23.7 million.

Non-GAAP net sales for the second quarter of fiscal 2014 were $492.7 million, up 6.5% sequentially from non-GAAP net sales of $462.8 million in the immediately preceding quarter, and up 20.8% from non-GAAP net sales of $407.8 million in the prior year’s second fiscal quarter. Non-GAAP net income for the second quarter of fiscal 2014 was a record $136.4 million, or 63 cents per diluted share, up13.3% from non-GAAP net income of $120.4 million, or 57 cents per diluted share, in the immediately preceding quarter, and up 39.5% from non-GAAP net income of $97.7 million, or 48 cents per diluted share, in the prior year’s second fiscal quarter. For the second quarters of fiscal 2014 and fiscal 2013, our non-GAAP results exclude the effect of share-based compensation, expenses related to our acquisition activities (including intangible asset amortization, inventory valuation costs, severance costs, earn out adjustments and legal and other general and administrative expenses associated with acquisitions), and non-cash interest expense on our convertible debentures. A reconciliation of our non-GAAP and GAAP results is included in this press release.

Microchip also announced today that its Board of Directors declared a quarterly cash dividend on its common stock of 35.45 cents per share. The quarterly dividend is payable on December 5, 2013 to stockholders of record on November 21, 2013.
“We were very pleased with our execution in the September quarter. Looking at the September quarter compared to the year ago quarter, microcontrollers grew 22.9%, analog grew 25.2% and licensing grew 23.4%, all achieving new revenue records,” said Steve Sanghi, President and CEO. “Our net sales, non-GAAP gross margin percentage and non-GAAP EPS all exceeded the high end of our guidance.”

Mr. Sanghi added, “The revenue growth and the leverage we have achieved in gross margins and operating expenses have been outstanding and enabled us to achieve non-GAAP operating profit of 31.8% in the quarter ended September 30, 2013. Based on three factors: improving gross margins and operating margins in our microcontroller and analog businesses, achieving a substantially better business model from our SMSC acquisition, and our growing licensing business, we have revised our long-term model upwards to be between 34% and 36% non-GAAP operating profit.”

For more information, visit www.microchip.com

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