EXHIBIT 99.1
Published on January 6, 2009
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EXHIBIT
99.1
NEWS
RELEASE
INVESTOR
RELATIONS CONTACT:
J.
Eric Bjornholt - CFO . . . (480)
792-7804
|
MICROCHIP
TECHNOLOGY PROVIDES PRELIMINARY RESULTS
FOR
THIRD QUARTER FISCAL 2009
CHANDLER,
Arizona – January 6, 2009 – (NASDAQ: MCHP) – Microchip Technology Incorporated,
a leading provider of microcontroller and analog semiconductors, today provided
preliminary results for the third quarter of fiscal 2009 ending December
31, 2008. Net sales for the third fiscal quarter are expected to be
down 29 to 31% sequentially. Earnings per diluted share on a GAAP
basis for the third fiscal quarter is expected to be approximately 21 to 24
cents, and earnings per diluted share on a non-GAAP basis, excluding the effect
of share-based compensation, losses on trading securities and a benefit from a
tax settlement is expected to be approximately 23 to 26 cents. The
preliminary results on a GAAP basis exclude any charges related to the
acquisition of Hampshire Company as the financial valuation related to the
acquisition has not been finalized as of the date of this
release. Any impact on the December 2008 quarterly earnings from the
acquisition of Hampshire Company including charges associated with acquired
in-process research and development, amortization of intangibles acquired and
purchase price allocations to inventory impacting cost of goods sold will be
included in the financial earnings release of Microchip scheduled for January
29, 2009. No conference call will be held in conjunction with today’s
press release.
“General
economic and semiconductor industry conditions have continued to decline since
our October earnings call,” said Steve Sanghi, Microchip’s President and
CEO. “As a result of these conditions, we are continuing with a pay
cut for all of our worldwide non-manufacturing employees which was implemented
during the December quarter. We are also continuing actions to reduce
manufacturing capacity in our wafer fabrication facilities in the U.S. and our
assembly and test facility in Thailand. These and other actions have
been taken to right-size our manufacturing output and keep operating expenses at
reasonable levels.”
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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
Provides
Preliminary Results
for
Third Quarter Fiscal 2009
“We are
positioning Microchip to emerge from this economic downturn stronger than our
competition by maintaining our focus on product and technology development
activities, demand creation initiatives and driving internal
efficiencies. We believe that we will continue to expand our
market share in our strategic product lines through our focus on design win
opportunities and new product introductions,” Mr. Sanghi continued.
In
response to investors’ questions, Microchip also stated that its Board of
Directors intends to maintain the Company’s dividend by using a portion of the
significant cash balance on its balance sheet.
Microchip
plans to announce its financial results for the third quarter of fiscal 2009
after market close on January 29, 2009. Due to the preliminary nature
of the Company’s results for the December quarter, the Company is not able to
provide a reconciliation of its GAAP and non-GAAP results but will include such
reconciliation and related information as part of its announcement on January
29.
Cautionary
Statement:
The
statements in this release relating to our preliminary results for net sales and
GAAP and non-GAAP earnings per share for the quarter ending December 31, 2008,
continuing pay cut, continuing actions to reduce manufacturing capacity, right
sizing our output, keeping operating expenses at reasonable levels, positioning
Microchip to emerge from this economic downturn stronger than our competition,
continuing to expand market share and maintaining the Company’s dividend 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; 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; the level of our cash flows from operations; foreign currency
effects on our business; costs
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Microchip
Technology
Provides
Preliminary Results
for
Third Quarter Fiscal 2009
and
outcome of any current or future tax audit or any litigation involving
intellectual property, customers or other issues; the completion of our
customary quarterly closing and review procedures; the results of the financial
valuation related to our acquisition of Hampshire Company, the impact of any
significant acquisitions we may make including our announced intention to
acquire Atmel Corporation; 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.
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 January 6, 2009 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 are registered trademarks of Microchip Technology
Incorporated in the U.S.A. and in other countries.
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