EXHIBIT 99.1
Published on April 28, 2008
 |
EXHIBIT
99.1
NEWS
RELEASE
INVESTOR
RELATIONS CONTACT:
Gordon
Parnell - CFO . . . (480) 792-7374
|
MICROCHIP
TECHNOLOGY ANNOUNCES FINANCIAL RESULTS
FOR
THE FOURTH QUARTER AND FISCAL YEAR 2008
|
|
·
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For
the quarter ending March 31,
2008:
|
|
|
§
|
Net
sales of $260.4 million, up 3.1% sequentially and up 0.9% over the year
ago quarter
|
|
|
§
|
On
a GAAP basis:
|
|
|
-
|
Record
gross margin of 60.9%; Operating profit of 31.4%; Net income of $76.7
million and 29.4% of net sales; EPS of 40 cents per diluted
share
|
|
|
§
|
On
a non-GAAP basis:
|
|
|
-
|
Record
gross margin of 61.5%; Operating profit of 34.7%; Net income of $79.2
million and 30.4% of net sales; Record EPS of 42 cents per diluted
share
|
|
|
§
|
Net
cash generated of $99.3 million during the March quarter, before dividend
payment of $60.4 million and stock buy back activity of $173.3
million.
|
|
|
·
|
For
Fiscal Year 2008:
|
|
|
§
|
Net
sales of $1,035.7 million, down 0.4% from fiscal year
2007
|
|
|
§
|
On
a GAAP basis:
|
|
|
-
|
Net
income of $297.7 million and EPS of $1.40 per diluted
share
|
|
|
§
|
On
a non-GAAP basis:
|
|
|
-
|
Record
Net income of $330.4 million and Record EPS of $1.57 per diluted
share
|
|
|
§
|
Record
net cash generated of $476.2 million during fiscal year 2008, before
dividend payments of $252.0 million, stock buy back activity of $1.14
billion and net proceeds from convertible debentures of $1.13
billion
|
|
|
·
|
Increased quarterly dividend by
3.1% sequentially to a record 33 cents per share; represents an increase
of 17.9% from dividend level one year
ago.
|
|
|
·
|
Record development system
shipments of 33,472 and 116,832 for the March quarter and fiscal year
2008, respectively
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CHANDLER,
Arizona – April 28, 2008 – (NASDAQ: MCHP) – Microchip Technology
Incorporated, a leading provider of microcontroller and analog semiconductors,
today reported results for the three months and fiscal year
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Microchip
Technology Incorporated 2355 West Chandler Blvd. Chandler, AZ
85224-6199 Main Office 480•792•7200 FAX
480•899•9210
Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2008
Financial Results
ended
March 31, 2008. Net sales for the fourth quarter of fiscal year 2008
were $260.4 million, up 3.1% sequentially from net sales of $252.6 million in
the immediately preceding quarter, and up 0.9% from net sales of $258.2 million
in the prior year’s fourth quarter. GAAP net income for the fourth
quarter of fiscal year 2008 was $76.7 million, or 40 cents per diluted share,
down 4.3% from GAAP net income of $80.1 million, or 38 cents per diluted share,
in the immediately preceding quarter, and down 40.0% from GAAP net income of
$127.7 million, or 57 cents per diluted share, in the prior year’s fourth
quarter. In December 2007, the Company issued and sold $1.15 billion
of its junior convertible debentures. As a result, the Company had an
increase in interest expense, reducing after-tax income by $3.9 million in the
quarter ended March 31, 2008. Utilizing existing cash balances and
the proceeds of the debt transaction, the Company repurchased 32.5 million
shares of its common stock during the third and fourth quarters of fiscal year
2008. Consequently, the debt transaction has been accretive to EPS as
the impact of the reduction in diluted common shares outstanding was greater
than the increased interest expense.
Non-GAAP
net income for the fourth quarter of fiscal year 2008 was $79.2 million, down
2.5% from non-GAAP net income of $81.2 million in the immediately preceding
quarter, and down 2.6% from non-GAAP net income of $81.3 million in the prior
year’s fourth quarter. Non-GAAP earnings per share were a record 42
cents per diluted share in the fourth quarter of fiscal year 2008, compared to
39 cents per diluted share in the immediately preceding quarter and 37 cents per
diluted share in the prior year’s fourth quarter. Non-GAAP results
exclude the effect of share-based compensation and a favorable adjustment
related to tax reserves. A reconciliation of non-GAAP and GAAP
results is included in this press release.
Net sales
for the fiscal year ended March 31, 2008 were $1,035.7 million, a decrease of
0.4% from net sales of $1,039.7 million in the prior fiscal year. On
a GAAP basis, net income for the fiscal year ended March 31, 2008 was $297.7
million, or $1.40 per diluted share, a decrease of 16.6% from net income of
$357.0 million, or $1.62 per diluted share in the prior year.
On a
non-GAAP basis, net income for the fiscal year ended March 31, 2008 was a record
$330.4 million or $1.57 per diluted share, an increase of 1.5% from net income
of $325.6 million, or $1.48 per diluted share, in the prior
year. Non-GAAP diluted earnings per share for fiscal year 2007
excludes a tax benefit related to a tax settlement with the Internal Revenue
Service and the effect of share-based compensation, and for fiscal year 2008
excludes favorable adjustments related to tax reserves, the sale of Fab 3 and
the effect of share-based compensation. A reconciliation of non-GAAP
and GAAP results is included in this press release.
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Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2008
Financial Results
Microchip
also announced today that its Board of Directors has declared a quarterly cash
dividend on its common stock of 33 cents per share. The quarterly
dividend is payable on May 27, 2008 to stockholders of record on May 12,
2008. Microchip initiated quarterly cash dividend payments in the
third quarter of fiscal year 2003.
“I am
very pleased to see our business return to a pattern of revenue growth, and meet
the upper end of the earnings per share guidance we provided upon entering the
quarter,” said Steve Sanghi, Microchip’s President and CEO. “The
revenue growth was driven by our proprietary products, where Flash
microcontrollers, 16-bit microcontrollers and analog all achieved record
quarterly revenue. In addition, gross margins achieved another
all-time record, reflecting ongoing operational improvements, depreciation
roll-off and firm pricing of our proprietary products.”
“Geographically,
the quarter was in line with our expectations, with revenue in both Europe and
Americas growing sequentially, while Asia was down sequentially, impacted by the
effects of the Lunar New Year holidays in that region,” continued Mr.
Sanghi.
“Revenues
from analog and microcontroller products were both very strong in the March
quarter, growing sequentially 8% and 4%, respectively,” said Ganesh Moorthy,
Executive Vice President. “Sixteen-bit microcontrollers delivered
another solid quarter of revenue growth with sales up 12% sequentially, and up
90% from the year-ago quarter. Shipments of development tools
continued at the strongest level we’ve seen, achieving record shipments of
33,472 in the March quarter, with worldwide cumulative shipments of
632,785.”
Mr.
Gordon Parnell, Microchip’s Chief Financial Officer, said, “With the strong
revenue performance in the quarter, inventory levels at March 31, 2008 declined
to 112 days, down 2 days from inventory levels at the end of December
2007. Inventory in the distribution channel also declined, to 1.8
months of inventory. Overall, we are pleased with the direction of
inventory levels in support of our business.”
Mr.
Parnell continued, “Cash generation continued to be an important element of our
business model with cash generation from operations representing $99.3 million
in the March quarter and $476.2 million for fiscal year 2008. Cash
generation in the quarter excludes the dividend payment to investors of $60.4
million and stock buy-back activities of $173.3 million. The Board is
reaffirming its commitment to return value to shareholders by the increase in
our dividend to 33 cents today, an increase of 17.9% from the dividend level in
the same quarter of last year.”
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Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2008
Financial Results
Mr.
Sanghi concluded, “Our book-to-bill ratio in the March quarter was 1.06 and our
opening backlog position for the June quarter was up approximately 8% compared
to the opening backlog for the March quarter. However, we continue to
watch economic conditions very carefully and monitor the potential impact on our
business. With these factors being considered, we expect sales to be
up sequentially 2% to 6% in the June quarter. EPS on a GAAP basis is
expected to be 39 to 41 cents and non-GAAP EPS is expected to be 43 to 45
cents.”
Microchip’s Recent
Highlights:
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·
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Microchip
continued its aggressive rollout of 16-bit microcontrollers and digital
signal controllers with 30 new 28- and 44-pin devices for embedded system
designers requiring increased memory or performance, or enhanced
peripherals, while obtaining the cost and size savings associated with
lower pin count devices. Specific families offer focused
solutions for motor control, power conversion, audio and general-purpose
applications. Microchip now offers the industry’s largest digital signal
controller portfolio.
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·
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Microchip
added integrated USB 2.0 On-The-Go (OTG) functionality to its 32-bit PIC32
microcontroller family which helps design engineers easily and cost
effectively address the growing demand for advanced USB connectivity in
their end products. In addition, the maximum operating
frequency for the entire PIC32 family has been increased to 80 MHz,
further extending the performance reach of such
products.
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·
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The
new PIC16F72X family of 28- and 40-pin 8-bit microcontrollers is capable
of operation down to 1.8V and features numerous on-chip peripherals for a
wide range of general-purpose applications in the appliance, industrial,
consumer electronic and many other
markets.
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·
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The
MCP179X high-voltage linear regulators debuted for automotive and
industrial applications, providing a continuous 70 milliampere output, the
ability to operate at a continuous input voltage of up to 30V and
load-dump protection up to 43.5V.
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·
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Microchip
partnered with Avnet Electronics Marketing and Future Electronics to
provide global distribution services, extending the technical reach and
depth of support for the Company’s entire product
portfolio. This is in addition to a large number of regional
and catalog distributors that are very important demand creators for
Microchip.
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·
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New
development tool introductions continued with the MPLAB®
Starter Kit for dsPIC®
digital signal controllers. The kit provides development
software and hardware for only $59.98. Microchip also released
the PICDEM™ Touch Sense 1 Demo Board which provides a complete platform
for implementing capacitive touch-sensing interfaces using the highly
integrated, cost-effective 8-bit Flash PIC®
microcontrollers.
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Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2008
Financial Results
First Quarter Fiscal Year
2009 Outlook:
The
following statements are based on current expectations. These
statements are forward-looking, and actual results may differ
materially.
|
·
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Net
sales for the quarter ending June 30, 2008 are currently anticipated to be
up 2% to 6% compared to the March 2008
quarter.
|
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·
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Gross
margin for the quarter ending June 30, 2008 is anticipated to be
approximately 61.0% to 61.15% on a GAAP basis, and approximately 61.6% to
61.75% on a non-GAAP basis, prior to the effect of share-based
compensation. Generally, gross margin fluctuates over time,
driven primarily by the mix of microcontrollers, analog products and
memory products sold; variances in manufacturing yields; fixed cost
absorption; wafer fab loading levels; pricing pressures in our
non-proprietary product lines; and competitive and economic
conditions.
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·
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Operating
expenses for the quarter ending June 30, 2008 are expected to be
approximately 28.2% to 28.8% of net sales on a GAAP basis, and
approximately 26.0% to 26.4% of net sales on a non-GAAP basis, prior to
the effect of share-based compensation expense. Operating
expenses fluctuate over time, primarily due to revenue and profit
levels.
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·
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The
tax rate on a GAAP and non-GAAP basis for the quarter ending June 30, 2008
is anticipated to be approximately 18.0% to
18.5%.
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·
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Earnings
per diluted share for the quarter ending June 30, 2008 are anticipated to
be approximately 39 to 41 cents on a GAAP basis, and approximately 43 to
45 cents on a non-GAAP basis, excluding the effect of share-based
compensation expense.
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Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2008
Financial Results
|
·
|
The
level of inventories fluctuates over time, primarily due to sales volume
and overall capacity utilization. Based on our sales guidance,
on both a GAAP and non-GAAP basis, inventories at June 30, 2008 are
anticipated to be 104 to 110
days.
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|
·
|
Capital
expenditures for the quarter ending June 30, 2008 are expected to be
approximately $28 million, and capital expenditures for fiscal year 2009
are expected to total approximately $100 million. Capital
expenditures for fiscal year 2009 include $30 million for expansion of our
assembly/test facility in Thailand. The level of capital
expenditures varies from time to time as a result of actual and
anticipated business conditions.
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·
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Based
on cash projected to be generated from operations and current projected
capital expenditure levels, we expect net cash generation during the June
quarter of approximately $120 million before the dividend payment of
approximately $60.9 million announced today. The amount of
expected cash generation is before the effect of any stock buy-back
activity.
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·
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Microchip’s
Board of Directors authorized a stock buy-back of up to 10.0 million
shares in December 2007. At March 31, 2008, approximately 6.5
million shares remained available for purchase under this
program. Future purchases will depend upon market conditions,
interest rates and corporate
considerations.
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·
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During
the March quarter, Microchip purchased 5.5 million shares of stock at an
average price of $31.52 per share, for a total sum of $173.3
million. The share count for the June quarter is expected to be
approximately 190.6 to 191.6 million shares on a GAAP basis, and 189.3 to
190.3 million shares on a non-GAAP
basis.
|
Use of Non-GAAP Financial
Measures:
SFAS
123(R) requires us to estimate the cost of certain forms of share-based
compensation, including employee stock options and awards under our employee
stock purchase plan (ESPP Plan), and to record a commensurate expense in our
income statement. Share-based compensation expense is a non-cash
expense that varies in amount from period to period and is affected by market
forces that are difficult to predict and are not within the control of
management, such as the price of our common stock. Our sale of Fab 3
in Puyallup, Washington and the favorable tax events are infrequent events in
our business. Accordingly, management excludes these items from its
internal operating forecasts and models.
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Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2008
Financial Results
We are
using non-GAAP profit, non-GAAP research and development expenses, non-GAAP
selling, general and administration expenses, non-GAAP operating income,
non-GAAP net income, and non-GAAP diluted earnings per
share, which excludes share-based compensation expense, the sale of Fab 3 in the
second quarter of fiscal year 2008, a tax benefit in the third quarter of fiscal
year 2008 related to the resolution of a foreign tax matter, and a tax benefit
in the fourth quarter of fiscal year 2008 related to adjustments to tax
reserves, to permit additional analysis of our
performance. Management believes these non-GAAP measures are useful
to investors because they enhance the understanding of our historical financial
performance and comparability between periods. Many of our investors
have requested that we disclose this non-GAAP information because they believe
it is useful in understanding our performance as it excludes non-cash and other
special charges that many investors feel may obscure our true operating
costs. Management uses these non-GAAP measures to manage and assess
the profitability of its business. Specifically, we do not consider
share-based compensation expense when developing and monitoring budgets and
spending. The economic substance behind our decision to exclude
share-based compensation relates to these charges being non-cash in
nature. The exclusion of favorable tax events and our sale of Fab 3
in our non-GAAP disclosures are based on the infrequent nature of these
events. Our determination of the above non-GAAP measures might not be
the same as similarly titled measures used by other companies, and it should not
be construed as a substitute for gross margin; research and development
expenses; selling, general and administrative expenses; operating income; net
income and diluted earnings per share determined in accordance with
GAAP. There are limitations associated with using non-GAAP measures,
including that they exclude financial information that some may consider
important in evaluating our performance. Management compensates for
this by presenting information on both a GAAP and non-GAAP basis for investors
and providing reconciliations of the GAAP and non-GAAP results.
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MICROCHIP
TECHNOLOGY INCORPORATED AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in
thousands, except per share amounts)
|
Three
Months Ended
March
31,
|
Twelve
Months Ended
March 31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Net
sales
|
$ | 260,418 | $ | 258,176 | $ | 1,035,737 | $ | 1,039,671 | ||||||||
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Cost
of sales
|
101,784 | 103,575 | 410,799 | 414,915 | ||||||||||||
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Gross margin
|
158,634 | 154,601 | 624,938 | 624,756 | ||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Research and
development
|
31,506 | 28,547 | 120,864 | 113,698 | ||||||||||||
|
Selling, general and
administrative
|
45,396 | 40,765 | 175,646 | 163,247 | ||||||||||||
|
Special charge – sale of Fab
3
|
- | - | 26,763 | - | ||||||||||||
| 76,902 | 69,312 | 323,273 | 276,945 | |||||||||||||
|
Operating
income
|
81,732 | 85,289 | 301,665 | 347,811 | ||||||||||||
|
Other
income and expense, net
|
7,089 | 14,063 | 49,320 | 53,279 | ||||||||||||
|
Income
before income taxes
|
88,821 | 99,352 | 350,985 | 401,090 | ||||||||||||
|
Income
taxes
|
12,169 | (28,356 | ) | 53,237 | 44,061 | |||||||||||
|
Net
income
|
$ | 76,652 | $ | 127,708 | $ | 297,748 | $ | 357,029 | ||||||||
|
Basic
net income per share
|
$ | 0.41 | $ | 0.59 | $ | 1.44 | $ | 1.66 | ||||||||
|
Diluted
net income per share
|
$ | 0.40 | $ | 0.57 | $ | 1.40 | $ | 1.62 | ||||||||
|
Basic
shares used in calculation
|
186,969 | 216,702 | 207,220 | 215,498 | ||||||||||||
|
Diluted
shares used in calculation
|
191,261 | 222,472 | 212,048 | 220,848 | ||||||||||||
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MICROCHIP
TECHNOLOGY INCORPORATED AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in
thousands)
ASSETS
|
March
31,
2008
|
March
31,
2007
|
|||||||
|
(Unaudited)
|
||||||||
|
Cash
and short-term investments
|
$ | 1,380,931 | $ | 750,477 | ||||
|
Accounts
receivable, net
|
138,319 | 124,559 | ||||||
|
Inventories
|
124,483 | 121,024 | ||||||
|
Other
current assets
|
130,138 | 88,677 | ||||||
|
Total current
assets
|
1,773,871 | 1,084,737 | ||||||
|
Property,
plant & equipment, net
|
522,305 | 605,722 | ||||||
|
Long-term
investments
|
138,133 | 527,910 | ||||||
|
Other
assets
|
77,998 | 51,172 | ||||||
|
Total assets
|
$ | 2,512,307 | $ | 2,269,541 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
Accounts
payable and other accrued liabilities
|
$ | 95,640 | $ | 164,557 | ||||
|
Deferred
income on shipments to distributors
|
95,441 | 91,363 | ||||||
|
Total current
liabilities
|
191,081 | 255,920 | ||||||
|
Convertible
debentures
|
1,150,128 | - | ||||||
|
Long-term
income tax payable
|
112,311 | - | ||||||
|
Deferred
tax liability
|
21,460 | 8,327 | ||||||
|
Other
long-term liabilities
|
1,104 | 926 | ||||||
|
Stockholders'
equity
|
1,036,223 | 2,004,368 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 2,512,307 | $ | 2,269,541 |
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MICROCHIP
TECHNOLOGY INCORPORATED AND SUBSIDIARIES
RECONCILIATION
OF GAAP TO NON-GAAP MEASURES
(Unaudited)
(in
thousands except per share amounts and percentages)
RECONCILIATION
OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
|
Three
Months Ended
March
31,
|
Twelve
Months Ended
March
31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Gross
margin, as reported
|
$ | 158,634 | $ | 154,601 | $ | 624,938 | $ | 624,756 | ||||||||
|
Share-based
compensation expense
|
1,553 | 1,660 | 6,191 | 3,255 | ||||||||||||
|
Non-GAAP
gross margin
|
$ | 160,187 | $ | 156,261 | $ | 631,129 | $ | 628,011 | ||||||||
|
Non-GAAP
gross margin percentage
|
61.5 | % | 60.5 | % | 60.9 | % | 60.4 | % | ||||||||
RECONCILIATION
OF RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP
RESEARCH
AND DEVELOPMENT EXPENSES
|
Three
Months Ended
March
31,
|
Twelve
Months Ended
March
31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Research
and development expenses, as reported
|
$ | 31,506 | $ | 28,547 | $ | 120,864 | $ | 113,698 | ||||||||
|
Share-based
compensation expense
|
(2,871 | ) | (2,379 | ) | (10,695 | ) | (9,623 | ) | ||||||||
|
Non-GAAP
research and development expenses
|
$ | 28,635 | $ | 26,168 | $ | 110,169 | $ | 104,075 | ||||||||
|
Non-GAAP
research and development expenses as a percentage of
revenue
|
11.0 | % | 10.1 | % | 10.6 | % | 10.0 | % | ||||||||
RECONCILIATION
OF SELLING, GENERAL AND ADMINISTRATIVE EXPENSES TO
NON-GAAP
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
Three
Months Ended
March
31,
|
Twelve
Months Ended
March
31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Selling,
general and administrative expenses, as reported
|
$ | 45,396 | $ | 40,765 | $ | 175,646 | $ | 163,247 | ||||||||
|
Share-based
compensation expense
|
(4,261 | ) | (3,627 | ) | (15,960 | ) | (14,501 | ) | ||||||||
|
Non-GAAP
selling, general and administrative expenses
|
$ | 41,135 | $ | 37,138 | $ | 159,686 | $ | 148,746 | ||||||||
|
Non-GAAP
selling, general and administrative expenses as a percentage of
revenue
|
15.8 | % | 14.4 | % | 15.4 | % | 14.3 | % | ||||||||
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RECONCILIATION
OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
|
Three
Months Ended
March
31,
|
Twelve
Months Ended
March
31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Operating
income, as reported
|
$ | 81,732 | $ | 85,289 | $ | 301,665 | $ | 347,811 | ||||||||
|
Adjustments
to reconcile operating income to non-GAAP operating
income:
|
||||||||||||||||
|
Share-based compensation
expense
|
8,685 | 7,666 | 32,846 | 27,379 | ||||||||||||
|
Special charge – sale of Fab
3
|
- | - | 26,763 | - | ||||||||||||
|
Non-GAAP
operating income
|
$ | 90,417 | $ | 92,955 | $ | 361,274 | $ | 375,190 | ||||||||
|
Non-GAAP
operating income as a percentage of revenue
|
34.7 | % | 36.0 | % | 34.9 | % | 36.1 | % | ||||||||
RECONCILIATION
OF NET INCOME AND DILUTED NET INCOME PER SHARE TO NON-GAAP NET INCOME AND
NON-GAAP DILUTED NET INCOME PER SHARE
|
Three
Months Ended
March
31,
|
Twelve
Months Ended
March
31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Net
income, as reported
|
$ | 76,652 | $ | 127,708 | $ | 297,748 | $ | 357,029 | ||||||||
|
Adjustments
to reconcile net income to non-GAAP net income:
|
||||||||||||||||
|
Share-based compensation
expense, net
of tax effect
|
7,053 | 5,826 | 26,451 | 20,809 | ||||||||||||
|
Special charge – sale of Fab 3,
net
of tax effect
|
- | - | 16,459 | - | ||||||||||||
|
Tax benefit on resolution of
foreign
tax matter
|
- | - | (5,733 | ) | - | |||||||||||
|
Tax benefit related to favorable
adjustment
to tax reserves
|
(4,529 | ) | - | (4,529 | ) | - | ||||||||||
|
Tax benefit on
settlement
|
- | (52,200 | ) | - | (52,200 | ) | ||||||||||
|
Non-GAAP
net income
|
$ | 79,176 | $ | 81,334 | $ | 330,396 | $ | 325,638 | ||||||||
|
Non-GAAP
net income as a percentage of revenue
|
30.4 | % | 31.5 | % | 31.9 | % | 31.3 | % | ||||||||
|
Diluted
net income per share, as reported
|
$ | 0.40 | $ | 0.57 | $ | 1.40 | $ | 1.62 | ||||||||
|
Adjustments
to reconcile net income to non-GAAP net income:
|
||||||||||||||||
|
Share-based compensation
expense, net
of tax effect
|
0.04 | 0.03 | 0.13 | 0.09 | ||||||||||||
|
Special charge – sale of Fab 3,
net
of tax effect
|
- | - | 0.08 | - | ||||||||||||
|
Tax benefit on resolution of
foreign
tax matter
|
- | - | (0.02 | ) | - | |||||||||||
|
Tax benefit related to favorable
adjustment
to tax reserves
|
(0.02 | ) | - | (0.02 | ) | - | ||||||||||
|
Tax benefit on
settlement
|
- | (0.23 | ) | - | (0.23 | ) | ||||||||||
|
Non-GAAP
diluted net income per share
|
$ | 0.42 | $ | 0.37 | $ | 1.57 | $ | 1.48 | ||||||||
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Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2008
Financial Results
Conference Call and
Updates:
Microchip
will host a conference call today April 28, 2008 at 5:00 p.m. (Eastern Time) to
discuss this release. This call will be simulcast over the Internet
at www.microchip.com. The
webcast will be available for replay until May 5, 2008.
A
telephonic replay of the conference call will be available at approximately 7:00
p.m. (Eastern Time) April 28, 2008 and will remain available until 5:00 p.m.
(Eastern Time) on May 5, 2008. Interested parties may listen to the
replay by dialing 719-457-0820 and entering access code 7114365.
Cautionary
Statement:
The
statements in this release relating to our business returning to a pattern of
growth, the direction of inventory levels in support of our business, our Board
reaffirming its commitment to return value to shareholders, revenue to be up 2%
to 6% in the June quarter, expected GAAP EPS and non-GAAP EPS for the June
quarter and the statements containing our GAAP and non-GAAP guidance (as
applicable) for the quarter ending June 30, 2008 with respect to net sales,
gross margin, operating expenses, tax rate, earnings per diluted share, days of
inventory, capital expenditures for the quarter ending June 30, 2008 and for
fiscal year 2009, and net cash generation 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: changes in demand or market acceptance of our products
and the products of our customers; the mix of inventory we hold and our ability
to satisfy short-term orders from our inventory; changes in utilization of our
manufacturing capacity; our ability to continue to secure sufficient assembly
and testing capacity; 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; foreign currency effects on our
business; costs and outcome of any current or future tax audit or any litigation
involving intellectual property, customers or other issues; disruptions in our
business or the businesses of our customers or suppliers due to natural
disasters, 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.
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Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2008
Financial Results
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 Web site
(www.microchip.com) or the SEC's Web site (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 April 28, 2008 press release, or to reflect the
occurrence of unanticipated events.
About
Microchip:
Microchip
Technology Incorporated 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 Web site at www.microchip.com.
The
Microchip name and logo, PIC, dsPIC and MPLAB are registered trademarks of
Microchip Technology Inc. in the USA and other countries. PICDEM is a
trademark of Microchip Technology Inc. in the USA and other
countries. All other trademarks mentioned herein are property of
their respective companies.
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