CHANDLER, Ariz., Sept. 6, 2016 /PRNewswire/ -- (NASDAQ: MCHP) -
Microchip Technology Incorporated, a leading provider of
microcontroller, mixed signal, analog and Flash-IP solutions, today
narrowed the range of its prior guidance for non-GAAP net sales and
earnings per share for its fiscal second quarter of 2017 ending
September 30, 2016. Microchip
previously provided guidance on August 8, 2016 for
consolidated non-GAAP net sales to be flat to up 4% with a
mid-point of up 2%. Microchip now expects consolidated
non-GAAP net sales to be up between 1% and 3% with a mid-point
unchanged at 2% and non-GAAP earnings per share to be between
85 cents and 89 cents per
share. The original guidance for non-GAAP earning per share
was between 83 cents and 91 cents per
share. Due to Microchip's recent acquisition of Atmel and the
related purchase accounting, Microchip is not able to provide GAAP
guidance at this time.
"Our business through the first two months of the September 2017 quarter is tracking towards our
August 8, 2016 guidance," said Steve
Sanghi, Microchip's president and CEO. "The integration
activities associated with our acquisitions of Atmel and Micrel
continue to make significant progress. Micrel's 6-inch fab in
San Jose is on schedule to close
in October 2016. Each of Atmel's 8-bit microcontroller, 32-bit
microcontroller, wireless and memory business units that have
substantial overlap with Microchip's business units are now
fully integrated and each one is running as one business unit under
a Microchip Vice President, with common roadmaps and Microchip's
pricing discipline."
"We have also implemented a strong operating expense discipline
at Atmel with non-GAAP operating expenses for the Atmel business in
the September quarter expected to be about 30% of net sales, down
from over 40% of net sales at the close of the acquisition,"
concluded Mr. Sanghi.
There will be no conference call associated with this press
release. Microchip's Chairman and CEO, Steve Sanghi, is presenting at the Citi 2016
Global Technology Conference tomorrow, Wednesday, September 7, 2016. A live webcast
and replay of the presentation will be available at
www.microchip.com.
Cautionary Statement:
The statements in this release relating to expecting our
non-GAAP net sales to be up between 1% and 3% with a mid-point of
2%, expecting non-GAAP earnings per share to be between
85 cents and 89 cents per share, our
business tracking towards our original guidance, integration
activities associated with our acquisitions of Atmel and Micrel
continuing to make significant progress, the Micrel 6-inch fab
being on schedule to close in October
2016, certain Atmel business units being fully integrated
and running with common roadmaps and Microchip's pricing
discipline, and strong operating expense discipline with operating
expenses for the Atmel business expected to be about 30% of net
sales in the September 2016 quarter,
are forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995. These statements involve risks and uncertainties that
could cause our actual results to differ materially, including, but
not limited to: any economic uncertainty due to monetary policy,
political or other issues in the U.S. or internationally, any
unexpected fluctuations or weakness in the U.S. and global
economies, changes in demand or market acceptance of our products
and the products of our customers; foreign currency effects on our
business; the mix of inventory we hold and our ability to satisfy
short-term orders from our inventory; changes in utilization of our
manufacturing capacity and our ability to effectively manage our
production levels; competitive developments including pricing
pressures; the level of orders that are received and can be shipped
in a quarter; the level of sell-through of our products through
distribution; changes or fluctuations in customer order patterns
and seasonality; our ability to successfully integrate Atmel's
operations and employees, retain key employees and otherwise
realize the expected synergies and benefits of the Atmel
transaction; our ability to continue to realize the expected
benefits of our Micrel acquisition; the impact of any other
significant acquisitions that we may make; our ability to obtain a
sufficient supply of wafers from third party wafer foundries and
the cost of such wafers, the costs and outcome of any current or
future tax audit or any litigation or disputes involving
intellectual property, customers or other issues; our actual
average stock price in the September
2016 quarter and the impact such price will have on our
share count; disruptions in our business or the businesses of our
customers or suppliers due to natural disasters (including any
floods in Thailand), terrorist
activity, armed conflict, war, worldwide oil prices and supply,
public health concerns or disruptions in the transportation system;
and general economic, industry or political conditions in
the United States or
internationally.
For a detailed discussion of these and other risk factors,
please refer to Microchip's filings on Forms 10-K and
10‑Q. You can obtain copies of Forms 10-K and 10-Q and other
relevant documents for free at Microchip's website
(www.microchip.com) or the SEC's website (www.sec.gov) or from
commercial document retrieval services.
Stockholders of Microchip are cautioned not to place undue
reliance on our forward-looking statements, which speak only as of
the date such statements are made. Microchip does not
undertake any obligation to publicly update any forward-looking
statements to reflect events, circumstances or new information
after this September 6, 2016 press
release, or to reflect the occurrence of unanticipated events.
About Microchip:
Microchip Technology Incorporated is a leading provider of
microcontroller, mixed-signal, analog and Flash-IP solutions,
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.
Note: The Microchip name and logo are registered
trademarks of Microchip Technology Inc. in the USA and other countries.
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SOURCE Microchip Technology Incorporated