Microchip Technology Announces Record Net Sales and Financial Results for Second Quarter Fiscal Year 2014

Microchip Technology Incorporated (MCHP), a leading provider of microcontroller, mixed signal, analog and Flash-IP solutions, today 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, up 13.3% 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.”