Microchip Technology Reaffirms Financial Guidance for Second Quarter Fiscal 2018
September 05 2017 - 4:15PM
Microchip Technology Incorporated (NASDAQ:MCHP), a leading provider
of microcontroller, mixed signal, analog and Flash-IP solutions,
today reaffirmed its financial guidance provided in its August 3,
2017 earnings press release and currently expects net sales of
approximately $1,001.3 million, non-GAAP earnings per diluted share
of $1.33 to $1.37 and GAAP earnings per diluted share of $0.74 to
$0.78 for the September quarter.
“The September 2017 quarter is comfortably tracking
towards our guidance provided on August 3, 2017. We are
continuing to execute on the various initiatives that we expect to
lead us to achieve our growth and long-term operating model goals,”
said Steve Sanghi, Microchip’s CEO.
Mr. Sanghi added, “The business environment
continues to be good for our products. Our manufacturing
capacity additions are coming on-line as expected and our lead
times have stabilized. We still expect it will take until the
middle of calendar year 2018 for our lead times and inventory
levels to get back to more optimal levels. We expect our
gradual and controlled capacity additions will lead to a soft
landing towards normal lead times, inventory levels and
backlog.”
There will be no conference call associated with
this press release. Microchip is presenting at the Citi 2017
Global Technology Conference tomorrow, Wednesday, September 6, 2017
at 8:00 a.m. (Pacific). A live webcast and replay of this
presentation will be available at www.microchip.com.
Cautionary Statement:
The statements in this release relating to our
expected net sales and GAAP and non-GAAP earnings per share for the
September quarter, the quarter comfortably tracking towards our
guidance, continuing to execute on the various initiatives that we
expect to lead us to achieve our growth and long-term operating
model goals, the business environment continuing to be good,
manufacturing capacity coming on-line as expected, lead times
stabilizing, lead times and inventory levels getting back to more
optimal levels by the middle of calendar year 2018, and that our
capacity additions will lead to a soft landing for lead times,
inventory levels and backlog 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
continue to effectively increase our production levels in response
to actual and anticipated customer demand; our ability to continue
to obtain a sufficient supply of wafers from third party wafer
foundries and the cost of such wafers, 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 continue to
successfully integrate the operations and employees, retain key
employees and otherwise realize the expected synergies and benefits
of our acquisitions; the impact of any other significant
acquisitions that we may make; 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 2017 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 5, 2017 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.
INVESTOR RELATIONS CONTACT:
J. Eric Bjornholt – CFO (480) 792-7804
Microchip Technology (NASDAQ:MCHP)
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