Microchip Reports Revenues of $161.3 Million for Most Recent Quarter

7/21/2003 - Microchip Technology Incorporated, a leading provider of microcontroller and analog semiconductors, reported results for the three months ended June 30, 2003. Net sales for the first quarter of fiscal year 2004 were $161.3 million, up 1% sequentially from $159.7 million in the immediately preceding quarter, and up 2% from sales of $157.5 million in the prior year’s first quarter. Pro forma net income for the first quarter of fiscal 2004 was $33.5 million or 16 cents per diluted share, up 2% from net income of $33.0 million or 16 cents per diluted share in the immediately preceding quarter, and up 12% from pro forma net income of $30.1 million or 14 cents per diluted share in the prior year’s first quarter. On a GAAP basis, net income for the first quarter of fiscal 2004 was $13.5 million, or 6 cents per diluted share. Pro forma diluted earnings per share for the first quarter of fiscal 2004 excludes the effects of special charges of $33.4 million which consisted of $30.6 million of accelerated depreciation relating to the closure of Fab 1 and $2.8 million of additional charges principally for contract cancellation, severance, and other related costs. A reconciliation of the Company’s GAAP results to its pro forma results is included later in this press release.

The Company expects to declare a quarterly cash dividend within the next week. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and increased the cash dividend amount in the fourth quarter of fiscal year 2003.

“I was pleased that Microchip returned to a pattern of revenue growth in the June quarter, especially given the backdrop of current business challenges, particularly in Asia, that we have been experiencing,” said Steve Sanghi, Microchip’s President and CEO.

“The closure of Fab 1 and consolidation with Fab 2 was achieved flawlessly by our manufacturing team, establishing fab capacity levels that will reduce our future inventory levels. We closed the June quarter with 134 days of inventory, and anticipate being at the top end of our target range of 110 days by the end of the fiscal year,” Mr. Sanghi continued.

“From a market presence standpoint we were delighted to achieve our goal of reaching the number one position for 8-bit microcontroller shipments. The market share gains we achieved in calendar year 2002 reflect the strength of our brand name and the broad product offering that supports our customers,” said Mr. Sanghi.

“We anticipate improvement of our business model in the September quarter, with Asia and the Americas being our strongest geographies. We expect net sales to grow sequentially between 1 to 6% in the September quarter,” Mr. Sanghi concluded.

Microchip’s First Quarter Fiscal Year 2004 Highlights:

Second Quarter Fiscal Year 2004 Outlook
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.

Continuing low visibility in the global semiconductor industry makes it very difficult to predict demand and other related matters. Microchip will make available a Mid-Quarter Update on September 16, 2003 after market close by posting the information on the Company’s web site. The information will not be contained in a press release sent over the wire services, and will only be posted to the Company’s web site at www.microchip.com. Those who do not have Internet access may call Microchip’s Investor Relations Hotline at 480-792-7761 for a recorded summary of the Mid-Quarter Update. See “Conference Call and Updates” section below for details.

About Microchip
Microchip Technology Inc. is a leading provider of microcontroller and analog semiconductors, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at www.microchip.com.

* Gartner Dataquest, 2002 Microcontroller Market Share and Unit Shipments, Tom Starnes, June 2003.

The Microchip logo and name, PIC, PICmicro, KEELOQ , MPLAB, and PowerSmart are registered trademarks of Microchip Technology Incorporated. rfPIC, PICkit, PICDEM and Application Maestro are trademarks of Microchip Technology Incorporated. All rights reserved. The Stevie award is a trademark of Stevie Awards Inc. Infrared Data Association (IRDA) is a registered trademark with the Infrared Data Association.

Previous Page | News by Category | News Search

If you found this page useful, bookmark and share it on: