Product category:
Microprocessors, Microcontrollers and DSPs
News Release from: Microchip Technology
Edited by the Electronicstalk Editorial
Team on 02 May 2007
Microchip tops the billion dollar mark
Microchip Technology has reported results for the fourth quarter and fiscal year, with net sales for the year up 12% on the previous year.
Microchip Technology has reported results for the three months and fiscal year ended 31st March 2007 Net sales for the fourth quarter of fiscal 2007 were US $258.2 million, up 2.9% sequentially from sales of $251 million in the immediately preceding quarter, and up 4.5% from sales of $247.2 million in the prior year's fourth quarter
This article was originally published on Electronicstalk on 10 Apr 2001 at 8.00am (UK)
Related stories
World's first serial EEPROM supporting ACR SIG
Microchip has announced the world's first serial EEPROM supporting the Advanced Communications Riser Special Interest Group (ACR SIG) specification.
Easy interfacing to faster microcontrollers
Microchip has added two new devices to its PIC16C92X family of 8bit one-time-programmable microcontrollers with integrated liquid-crystal display controller.
GAAP net income for the fourth quarter of fiscal 2007 was a record $127.7 million, or 57 cents per diluted share, up 75.3% from GAAP net income of $72.8 million, or 33 cents per diluted share, in the immediately preceding quarter, and up 69.0% from GAAP net income of $75.6 million, or 35 cents per diluted share in the prior year's fourth quarter.
Non-GAAP net income for the fourth quarter of fiscal 2007 was $81.3 million, or 37 cents per diluted share, up 3.3% from non-GAAP net income of $78.7 million, or 36 cents per diluted share, in the immediately preceding quarter, and up 7.6% from GAAP net income of $75.6 million, or 35 cents per share, in the prior year's fourth quarter.
Non-GAAP results exclude a tax benefit in the fourth quarter of fiscal 2007 related to a tax settlement with the Internal Revenue Service and the effect of share-based compensation expense.
Further reading
BiCMOS op amps feature low offset voltage
Microchip has announced a new family of unity gain stable op amps with low offset voltage.
Flash microcontrollers run up to 10MIPS
Microchip's new PIC18F010 and PIC18F020 Flash microcontrollers offer an industry-leading performance of 10MIPS, 4Kbyte of program memory, 256byte of user RAM and 64byte of EEPROM.
Micropower op amp shrinks into SOT-23 package
Microchip's new 2.5 V micropower operational amplifier is available in a tiny SOT-23 package.
Net sales for the fiscal year ended 31st March 2007 were $1039.7 million, an increase of 12% from net sales of $927.9 million in the prior fiscal year.
On a GAAP basis, net income for the fiscal year ended 31st March 2007 was $357 million, or $1.62 per diluted share, an increase of 47% from net income of $242.4 million, or $1.13 per diluted share in the prior year.
On a non-GAAP basis, net income for the fiscal year ended 31st March 2007 was $325.6 million or $1.48 per diluted share, an increase of 19.3% from net income of $273 million, or $1.27 per diluted share in the prior year.
Non-GAAP diluted earnings per share for fiscal year 2006 excludes a tax charge related to repatriation of foreign earnings under the American Jobs Creation Act of 2004, and for fiscal 2007 excludes a tax benefit related to a tax settlement with the Internal Revenue Service and the effect of share-based compensation expense.
"The results for the March quarter exceeded our guidance and demonstrated the continuing strength of our proprietary products".
"Net sales of our proprietary microcontroller products increased by 4% sequentially".
"Our Flash microcontroller product sales were even stronger, and grew 7% sequentially, reaching record levels".
"Additionally, our 16bit microcontroller product sales were up 41% sequentially", said Steve Sanghi, Microchip's President and CEO.
"Gross margins on a non-GAAP basis achieved new record levels for the company, at 60.5%".
"Earnings per share on a non-GAAP basis also exceeded our guidance".
Sanghi stated: "We are also very pleased to have exceeded a billion dollars in sales in fiscal 2007 for the first time".
"We also achieved record cash generation from the business of $470 million during fiscal 2007".
"Both measures are important results from the proprietary product positioning and the excellent profitability of our business".
"We have now received confirmation from Dataquest's published report that Microchip is, for the first time, the number-one supplier of 8bit microcontrollers in dollars, based on the results of calendar year 2006".
"With continued momentum from new product introductions and record development system shipments, we look to further extend our leadership position in the embedded control markets in future years", said Ganesh Moorthy, Executive Vice President.
Gordon Parnell, Microchip's Chief Financial Officer said: "Inventory days on hand as of the March quarter end, prior to the effect of share-based compensation, were 105 days, a decrease of 3 days from inventory levels at 31st December 2006".
"Inventory in the distribution channel also declined to 1.8 months at 31st March from 1.9 months as of December 2006".
Parnell added: "Included in the results of fiscal year 2007 is a tax benefit of $52.2 million related to the closure of tax events from previous years".
"Based on the results of these events and our forecast information for fiscal 2008, we are reducing our effective tax rate from 24% utilised in fiscal 2007, to 20% for fiscal 2008".
Sanghi said: "We anticipate revenue growth of about 5% sequentially in the June quarter, with GAAP earnings per diluted share of 37 cents".
"EPS on a non-GAAP basis, excluding the effect of share-based compensation, is expected to be approximately 40 cents per diluted share".
"As we are moving into a stronger period for Microchip in the June and September quarters, we are taking appropriate actions to ramp production levels in both our wafer fabrication and assembly and test facilities", Sanghi concluded.
• Microchip Technology: contact details and other news
• Email this article to a colleague
• Register for the free Electronicstalk email newsletter
• Electronicstalk Home Page
Search the Pro-Talk network of sites
