PRESS RELEASE
Published on May 7, 2009
 |
EXHIBIT
99.1
NEWS
RELEASE
|
||
|
INVESTOR
RELATIONS CONTACTS:
|
|||
|
J.
Eric Bjornholt – CFO
|
(480)
792-7804
|
||
|
Gordon
Parnell – Vice President of Business Development
|
|||
|
and Investor
Relations
|
(480)
792-7374
|
||
MICROCHIP
TECHNOLOGY ANNOUNCES FINANCIAL RESULTS
FOR
THE FOURTH QUARTER AND FISCAL YEAR 2009
|
·
|
For the quarter ending
March 31, 2009:
|
|
§
|
Net
sales of $173.3 million, down 9.8%
sequentially
|
|
§
|
On
a GAAP basis:
|
|
-
|
Gross
margin of 48.5%; Operating profit of 11.0%; Net income of $22.8 million
and 13.2% of net sales; EPS of 12 cents per diluted
share
|
|
§
|
On
a non-GAAP basis:
|
|
-
|
Gross
margin of 49.3%; Operating profit of 19.3%; Net income of $27.9 million
and 16.1% of net sales; EPS of 15 cents per diluted
share
|
|
§
|
Maintained
quarterly dividend at 33.9 cents per
share
|
|
·
|
For Fiscal Year
2009:
|
|
§
|
Net
sales of $903.3 million
|
|
§
|
On
a GAAP basis:
|
|
-
|
Net
income of $248.8 million and EPS of $1.33 per diluted
share
|
|
§
|
On
a non-GAAP basis:
|
|
-
|
Net
income of $235.2 million and EPS of $1.27 per diluted
share
|
|
§
|
Record
annual development system shipments of 136,531, an increase of 16.9% over
fiscal year 2008
|
CHANDLER,
Arizona – May 7, 2009 – (NASDAQ: MCHP) – Microchip Technology Incorporated, a
leading provider of microcontroller and analog semiconductors, today reported
results for the three months and fiscal year ended March 31,
2009. Net sales for the fourth quarter of fiscal year 2009 were
$173.3 million, down 9.8% sequentially from net sales of $192.2 million in the
immediately preceding quarter, and down 33.5% from net sales of $260.4 million
in the prior year’s fourth quarter. GAAP net income for the fourth
quarter of fiscal year 2009 was $22.8 million, or 12 cents per diluted share,
down 68.8% from GAAP net income of $73.2 million, or 40 cents per diluted share,
in the immediately preceding quarter, and down 70.2% from GAAP net income of
$76.7 million, or 40 cents per diluted share, in the prior year’s fourth
quarter.
- - more
- - -
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
2009
Financial Results
Non-GAAP
net income for the fourth quarter of fiscal year 2009 was $27.9 million, or 15
cents per diluted share, down 32.2% from non-GAAP net income of $41.2 million,
or 23 cents per diluted share, in the immediately preceding quarter, and down
64.8% from non-GAAP net income of $79.2 million, or 42 cents per diluted share,
in the prior year’s fourth quarter. For the fourth fiscal quarter,
our non-GAAP results exclude any gain or loss on trading securities, the effect
of share-based compensation, the impact of our recent acquisitions, the
acquisition of a patent portfolio license, and acquisition-related expenses
relating to the Atmel transaction from which we have withdrawn. A
reconciliation of our non-GAAP and GAAP results is included in this press
release.
Net sales
for the fiscal year ended March 31, 2009 were $903.3 million, a decrease of
12.8% from net sales of $1,035.7 million in the prior fiscal year. On
a GAAP basis, net income for the fiscal year ended March 31, 2009 was $248.8
million, or $1.33 per diluted share, a decrease of 16.4% from net income of
$297.7 million, or $1.40 per diluted share in the prior fiscal
year.
On a
non-GAAP basis, net income for the fiscal year ended March 31, 2009 was $235.2
million, or $1.27 per diluted share, a decrease of 28.8% from net income of
$330.4 million, or $1.57 per diluted share, in the prior fiscal
year. For fiscal years 2008 and 2009, our non-GAAP results exclude
the items mentioned above and non-recurring favorable tax events and our sale of
Fab 3 in Puyallup, Washington. A reconciliation of our
non-GAAP and GAAP results is included in this press release.
Microchip
also announced today that its Board of Directors has declared a quarterly cash
dividend on its common stock of 33.9 cents per share. The quarterly
dividend is payable on June 4, 2009 to stockholders of record on May 21,
2009. Microchip initiated quarterly cash dividend payments in the
third quarter of fiscal year 2003.
“During
the March quarter we saw improvement in the overall business environment,” said
Steve Sanghi, Microchip’s President and CEO. “Our total backlog
bottomed out early in the quarter and then gradually showed modest improvement
through the remainder of the quarter. Our book-to-bill ratio for the
March quarter was 1.04. We were pleased to end the quarter modestly
better than the midpoint of our revenue guidance given on March 10, 2009
and at the high end of our earnings per share guidance. The earnings
per share achievement was driven by excellent control of our operating
expenses. I want to thank all of Microchip’s employees for the
sacrifices they have made, as well as for their overall diligence in driving the
reductions in operating expenses.”
-
- - more - -
Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2009
Financial Results
“In the
March quarter, we achieved GAAP gross margins of 48.5% and non-GAAP gross
margins of 49.3%, which were slightly lower than our internal plan due to lower
utilization levels in our wafer fabrication facilities. We expect
that gross margins bottomed out in the March quarter, and expect improving gross
margins in the June quarter. During the March quarter we ran our
wafer fabs at 57% of the peak levels in the September 2008 quarter, which
allowed us to reduce the days of inventory on our balance sheet to 134 days at
March 31, 2009, compared to 143 days at the end of December,” continued Mr.
Sanghi.
“Our
16-bit product line revenue was up 6% sequentially, and was up 21% from a year
ago, demonstrating the overall momentum we have in this product line,
particularly in this difficult environment,” said Ganesh Moorthy, Executive Vice
President. “We are encouraged by the excellent growth we have
continued to see in the number of 16-bit volume customers as we continue to gain
market share.”
Eric
Bjornholt, Microchip’s Chief Financial Officer, said, “Inventory levels on
Microchip’s balance sheet decreased by $5.0 million in the March quarter
compared to the December 2008 quarter. Deferred income on shipments
to distributors fell by $14.5 million in the March quarter, and days of
inventory in the distribution channel decreased from 41 days to 38
days. With inventory days and dollars declining on our balance sheet
and at our distributors, we are continuing to make good progress in right-sizing
our inventory position.”
Mr.
Sanghi concluded, “With the backdrop of the continued global economic crisis and
limited visibility, Microchip is not providing revenue guidance at this
time. However, for our internal activities, we are planning revenue
for the quarter ending June 30, 2009 to be approximately $182 million, or up
about 5% sequentially.”
Microchip’s Recent
Highlights:
|
·
|
Microchip
announced its next-generation low-power PIC®
microcontroller families with nanoWatt XLP™ eXtreme Low Power Technology
for the world’s lowest sleep currents—as low as 20 nA. These
three new 8- and 16-bit microcontroller families join three other recent
8-bit families that are all part of the nanoWatt XLP portfolio, providing
designers with a rich and compatible low-power migration path that
includes on-chip peripherals for USB and mTouch™ sensing
solutions. This industry-leading combination of low power
consumption and functionality makes these PIC microcontrollers ideal for
any battery-powered or power-constrained
application.
|
-
- - more - -
Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2009
Financial Results
|
·
|
During
the March quarter, Microchip shipped 33,514 new development systems,
demonstrating the continued strong interest in Microchip’s
products. In fiscal year 2009, Microchip shipped 136,531
development systems, a 16.9% increase over the previous fiscal
year. The total cumulative number of development systems
shipped now stands at 769,316.
|
|
·
|
The
Company recently acquired two private companies. The first was
HI-TECH Software, which is best known for its high-performance C
compilers. With the addition of the HI-TECH Software portfolio,
Microchip now offers a complete suite of highly efficient compilers
supporting all Microchip devices, from the smallest 8-bit PIC10
microcontroller to the largest 32-bit PIC32
microcontroller. The HI-TECH acquisition also extends
Microchip’s leadership in compiler technology by providing users with the
option to develop their C code using the Mac OS X and Linux operating
systems. The second acquisition was R&E International, a
developer of both standard and application-specific integrated circuits
(ASICs) focusing on security and life-safety
applications. R&E International is a leader in developing
innovative integrated circuits for smoke and carbon monoxide detectors and
other life-safety systems. With R&E International’s strong
portfolio of products, Microchip will extend its strong market position in
these security and life-safety
applications.
|
|
·
|
Microchip
won the EE Times ACE Award for Company of the Year and the EDN Innovation
Award for its 32-bit PIC32 microcontroller family, among other honors for
business leadership and product
innovation.
|
|
·
|
In
the area of 8-bit microcontrollers, the Company introduced one new
microcontroller family and several development tools. The
PIC18F87J90 direct LCD-drive microcontrollers are the industry’s first
8-bit microcontrollers to include a Real-Time Clock and Calendar, and
Charge Time Measurement Unit peripheral for capacitive touch sensing or
precise time measurement. To get started with this family,
customers can use the new PICDEM™ LCD 2 Demo
Board.
|
|
·
|
The
PICDEM™ Lab Development Kit is a new comprehensive, entry-level
development platform for all of Microchip’s 8-bit Flash PIC
microcontrollers with 20 or fewer pins. Geared toward
educators, students and those who are new to microcontrollers, the kit
comes with everything needed to quickly and easily develop
applications.
|
-
- - more - -
Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2009
Financial Results
|
·
|
Microchip
also expanded the security capabilities of the patented KEELOQ®
authentication system. The KEELOQ 3 Development Kit
demonstrates these enhancements, including a patented secure-learning
algorithm that prevents differential power-analysis attack
techniques. Additionally, the technology now supports 128-bit
encryption keys, longer data transmissions and bi-directional
communication authentication, and also supports alternative encryption
algorithms, such as XTEA and AES.
|
|
·
|
In
the 16-bit arena, Microchip introduced a new dsPIC33 Digital Signal
Controller (DSC) family for digital power and lighting that provides up to
twice the performance at a significantly lower price than Microchip’s
first power-conversion DSC family. The Company also introduced
several development tools, reference designs and workshops to support
development of digital-power and motor-control applications with its
dsPIC®
DSCs.
|
|
·
|
Microchip
announced that embedded designers can now combine digital signal
processing and microcontroller control code with the 32-bit PIC32
microcontroller family, using its no-cost, royalty-free High Performance
DSP Library. This new library, which was added to the
MPLAB® C
Compiler for PIC32 microcontrollers at no additional cost, enables a 22%
increase in Fast Fourier Transform
speeds.
|
|
·
|
The
Company added to its analog portfolio with the MCP6561/2/4/6/7/9 family of
high-speed (45 nS) comparators. With rail-to-rail input and
output, low operating voltage down to 1.8V, low quiescent current and
package options with push-pull and open-drain outputs, the new devices
provide a high level of performance for a wide variety of
applications.
|
|
·
|
New
memory products announced during the quarter included stand-alone serial
SRAM devices, a series of I2C™
EEPROM devices with the lowest operating voltage available on the market,
and several new serial EEPROM devices in small packages—including a
Wafer-Level Chip Scale Package, a 5-pin SC-70 package, and a 5-pin SOT-23
package.
|
-
- - more - -
Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2009
Financial Results
First Quarter Fiscal Year
2010 Outlook:
The
following statements are based on current expectations. These
statements are forward-looking, and actual results may differ
materially.
|
·
|
In
light of the highly uncertain global economic conditions and limited
visibility, Microchip is not providing revenue guidance at this
time. However, for our internal activities, we are planning
revenue for the quarter ending June 30, 2009 to be approximately $182
million, or up about 5% sequentially. All financial information
provided below is based on this internal revenue plan of approximately
$182 million.
|
|
·
|
Our
internal plan for gross margin for the quarter ending June 30, 2009 is
about 49% on a GAAP basis, and about 50% on a non-GAAP basis, prior to the
effect of share-based compensation and the amortization of acquisition
related intangibles. Gross margin will be affected by the
underutilization of our manufacturing facilities being charged to cost of
goods sold in the quarter ending June 30, 2009. 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;
inventory reserves; pricing pressures in our non-proprietary product
lines; and competitive and economic
conditions.
|
|
·
|
We
expect operating expenses as a percentage of sales in the quarter ending
June 30, 2009 to be approximately at the same levels as the March 31, 2009
quarter. Operating expenses fluctuate over time, primarily due
to revenue and profit levels.
|
|
·
|
The
tax rate on a GAAP and non-GAAP basis for the quarter ending June 30, 2009
is expected to be approximately 13% to
15%.
|
|
·
|
Our
internal plan for earnings per diluted share for the quarter ending June
30, 2009 is approximately 11 cents on a GAAP basis. GAAP after
tax earnings in the quarter ending June 30, 2009 will be impacted by
approximately $0.9 to $1.2 million from the adoption of FSP APB 14-1,
Accounting for
Convertible Debt Instruments that May be Settled in Cash Upon
Conversion. FSP APB 14-1 will require us to record
non-cash interest expenses of approximately $1.5 to $2.0 million in the
quarter ended June 30, 2009, which we will exclude from our non-GAAP
results. The company currently has investments in trading
securities that
|
-
- - more - -
Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2009
Financial Results
are
subject to mark-to-market adjustments. We have assumed zero gain or
loss on such securities for our internal target for GAAP EPS. Our
internal plan for earnings per share on a non-GAAP basis is approximately 16
cents, excluding the effect of share-based compensation expense,
acquisition-related charges, non-cash interest expense and any mark-to-market
adjustment on the value of our trading securities.
|
·
|
Our
plan for capital expenditures for the quarter ending June 30, 2009 is
approximately $4.5 million, predominantly consisting of previously
committed capital that was pushed out of the prior fiscal
year. The current internal plan for capital for all of fiscal
year 2010 is approximately $15
million.
|
|
·
|
Microchip’s
Board of Directors authorized a stock buy back of up to 10.0 million
shares in December 2007. At March 31, 2009, approximately 2.5
million shares remained available for purchase under this
program. Future purchases will depend upon market conditions,
interest rates and corporate
considerations.
|
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, restricted stock units and 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
the price of our stock at the date of grant. The price of our stock
is affected by market forces that are difficult to predict and are not within
the control of management. The value of our trading securities varies
in amount from period to period and is affected by fluctuations in the market
prices of such securities that we cannot predict and are not within the control
of management. The non-GAAP adjustments related to the impact of our
acquisitions of Hampshire Company, HI-TECH Software and R&E International
are non-cash expenses related to such transactions. Our sale of Fab 3
in Puyallup, Washington, our favorable settlement with the IRS, the favorable
adjustment to tax reserves based on a clarification of tax regulations announced
by the IRS, the retroactive reinstatement of the R&D tax credit, the tax
benefit on resolution of a foreign tax matter; the acquisition of a patent
portfolio license and our acquisition-related expenses relating to the
abandonment of the Atmel transaction are one-time events in our
business. Accordingly, management excludes all of these items from
its internal operating forecasts and models.
-
- - more - -
Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2009
Financial Results
We are
using non-GAAP gross 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
exclude the items noted in the immediately preceding paragraph, 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 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 such items when developing
and monitoring our budgets and spending. As described above the
economic substance behind our decision to exclude such items relates either to
these charges being non-cash in nature or to the one-time nature of the
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 amounts 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.
-
- - more - -
|
MICROCHIP
TECHNOLOGY INCORPORATED AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
|
(in
thousands except per share amounts)
(Unaudited)
|
||||||||||||||||
|
Three
Months Ended
March 31,
|
Three Months Ended
March 31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Net
sales
|
$ | 173,253 | $ | 260,418 | $ | 903,297 | $ | 1,035,737 | ||||||||
|
Cost
of sales
|
89,286 | 101,784 | 386,793 | 410,799 | ||||||||||||
|
Gross
profit
|
83,967 | 158,634 | 516,504 | 624,938 | ||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Research
and development
|
25,656 | 31,506 | 115,524 | 120,864 | ||||||||||||
|
Selling,
general and administrative
|
33,336 | 45,396 | 161,218 | 175,646 | ||||||||||||
|
Special
charges
|
5,934 | - | 6,434 | 26,763 | ||||||||||||
| 64,926 | 76,902 | 283,176 | 323,273 | |||||||||||||
|
Operating
income
|
19,041 | 81,732 | 233,328 | 301,665 | ||||||||||||
|
Other
income, net
|
9,881 | 7,089 | 3,922 | 49,320 | ||||||||||||
|
Income before
income taxes
|
28,922 | 88,821 | 237,250 | 350,985 | ||||||||||||
|
Income
tax provision (benefit)
|
6,093 | 12,169 | (11,570 | ) | 53,237 | |||||||||||
|
Net
income
|
$ | 22,829 | $ | 76,652 | $ | 248,820 | $ | 297,748 | ||||||||
|
Basic
net income per share
|
$ | 0.13 | $ | 0.41 | $ | 1.36 | $ | 1.44 | ||||||||
|
Diluted
net income per share
|
$ | 0.12 | $ | 0.40 | $ | 1.33 | $ | 1.40 | ||||||||
|
Basic
shares used in calculation
|
182,392 | 186,969 | 183,158 | 207,220 | ||||||||||||
|
Diluted
shares used in calculation
|
184,168 | 191,261 | 186,788 | 212,048 | ||||||||||||
-
- - more - -
|
MICROCHIP
TECHNOLOGY INCORPORATED AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
|
(in
thousands)
|
||||||||
|
ASSETS
|
||||||||
|
March
31,
|
March
31,
|
|||||||
|
2009
|
2008
|
|||||||
|
(Unaudited)
|
||||||||
|
Cash
and short-term investments
|
$ | 1,389,945 | $ | 1,324,790 | ||||
|
Accounts
receivable, net
|
88,525 | 138,319 | ||||||
|
Inventories
|
131,510 | 124,483 | ||||||
|
Other
current assets
|
132,809 | 130,138 | ||||||
|
Total
current assets
|
1,742,789 | 1,717,730 | ||||||
|
Property,
plant & equipment, net
|
531,687 | 522,305 | ||||||
|
Long-term
investments
|
50,826 | 194,274 | ||||||
|
Other
assets
|
96,137 | 77,998 | ||||||
|
Total
assets
|
$ | 2,421,439 | $ | 2,512,307 | ||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
Accounts
payable and other accrued liabilities
|
$ | 71,714 | $ | 95,640 | ||||
|
Deferred
income on shipments to distributors
|
83,931 | 95,441 | ||||||
|
Total
current liabilities
|
155,645 | 191,081 | ||||||
|
Convertible
debentures
|
1,149,184 | 1,150,128 | ||||||
|
Long-term
income tax payable
|
70,051 | 112,311 | ||||||
|
Deferred
tax liability
|
51,959 | 21,460 | ||||||
|
Other
long-term liabilities
|
3,834 | 1,104 | ||||||
|
Stockholders'
equity
|
990,766 | 1,036,223 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 2,421,439 | $ | 2,512,307 | ||||
-
- - more - -
MICROCHIP
TECHNOLOGY INCORPORATED AND SUBSIDIARIES
RECONCILIATION
OF GAAP TO NON-GAAP MEASURES
(in
thousands except per share amounts and percentages)
(Unaudited)
RECONCILIATION
OF GROSS PROFIT TO NON-GAAP GROSS PROFIT
|
Three
Months Ended
March
31,
|
Twelve
Months Ended
March
31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Gross
profit, as reported
|
$ | 83,967 | $ | 158,634 | $ | 516,504 | $ | 624,938 | ||||||||
|
Share-based
compensation expense
|
1,200 | 1,553 | 5,845 | 6,191 | ||||||||||||
|
Acquisition-related
acquired inventory valuation costs and
intangible
asset amortization
|
238 | - | 546 | - | ||||||||||||
|
Non-GAAP
gross profit
|
$ | 85,405 | $ | 160,187 | $ | 522,895 | $ | 631,129 | ||||||||
|
Non-GAAP
gross profit percentage
|
49.3 | % | 61.5 | % | 57.9 | % | 60.9 | % | ||||||||
RECONCILIATION
OF RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP
RESEARCH
AND DEVELOPMENT EXPENSES
|
Three
Months Ended
March
31,
|
Twelve
Months Ended
March
31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Research
and development expenses, as reported
|
$ | 25,656 | $ | 31,506 | $ | 115,524 | $ | 120,864 | ||||||||
|
Share-based
compensation expense
|
(2,843 | ) | (2,871 | ) | (10,866 | ) | (10,695 | ) | ||||||||
|
Non-GAAP
research and development expenses
|
$ | 22,813 | $ | 28,635 | $ | 104,658 | $ | 110,169 | ||||||||
|
Non-GAAP
research and development expenses as a percentage of net
sales
|
13.2 | % | 11.0 | % | 11.6 | % | 10.6 | % | ||||||||
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,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Selling,
general and administrative expenses, as reported
|
$ | 33,336 | $ | 45,396 | $ | 161,218 | $ | 175,646 | ||||||||
|
Share-based
compensation expense
|
(4,081 | ) | (4,261 | ) | (15,770 | ) | (15,960 | ) | ||||||||
|
Acquisition-related
intangible asset amortization
|
(157 | ) | - | (285 | ) | - | ||||||||||
|
Non-GAAP
selling, general and administrative expenses
|
$ | 29,098 | $ | 41,135 | $ | 145,163 | $ | 159,686 | ||||||||
|
Non-GAAP
selling, general and administrative expenses as a percentage of net
sales
|
16.8 | % | 15.8 | % | 16.1 | % | 15.4 | % | ||||||||
-
- - more - -
RECONCILIATION
OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
|
Three
Months Ended
March
31,
|
Twelve
Months Ended
March
31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Operating
income, as reported
|
$ | 19,041 | $ | 81,732 | $ | 233,328 | $ | 301,665 | ||||||||
|
Share-based
compensation expense
|
8,124 | 8,685 | 32,481 | 32,846 | ||||||||||||
|
Acquisition-related
acquired inventory valuation costs and
intangible
asset amortization
|
395 | - | 831 | - | ||||||||||||
|
Special
charge – in-process R&D expenses
|
360 | - | 860 | - | ||||||||||||
|
Special
charge – patent portfolio license
|
4,000 | - | 4,000 | - | ||||||||||||
|
Special
charge – abandoned acquisition-related expenses
|
1,574 | - | 1,574 | - | ||||||||||||
|
Special
charge – sale of Fab 3
|
- | - | - | 26,763 | ||||||||||||
|
Non-GAAP
operating income
|
$ | 33,494 | $ | 90,417 | $ | 273,074 | $ | 361,274 | ||||||||
|
Non-GAAP
operating income as a percentage of net sales
|
19.3 | % | 34.7 | % | 30.2 | % | 34.9 | % | ||||||||
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,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Net
income, as reported
|
$ | 22,829 | $ | 76,652 | $ | 248,820 | $ | 297,748 | ||||||||
|
Share-based
compensation expense, net of tax effect
|
7,231 | 7,053 | 27,204 | 26,451 | ||||||||||||
|
Acquisition-related
acquired inventory valuation costs and
intangible asset amortization, net of tax effect
|
352 | - | 710 | - | ||||||||||||
|
Special
charge – in-process R&D expenses, net
of tax effect
|
320 | - | 731 | - | ||||||||||||
|
Special
charge – patent portfolio license, net of tax effect
|
3,600 | - | 3,600 | - | ||||||||||||
|
Special
charge – abandoned acquisition-related expenses, net
of tax effect
|
968 | - | 968 | - | ||||||||||||
|
Special
charge – sale of Fab 3, net of tax effect
|
- | - | - | 16,459 | ||||||||||||
|
(Gain)
loss on trading securities, net of tax effect
|
(7,392 | ) | - | 4,460 | - | |||||||||||
|
R&D
tax credit reinstatement
|
- | - | (1,470 | ) | - | |||||||||||
|
Tax
benefit related to IRS settlement and clarification
in tax regulations
|
- | - | (49,847 | ) | - | |||||||||||
|
Tax
benefit on resolution of foreign tax matter
|
- | - | - | (5,733 | ) | |||||||||||
|
Tax
benefit related to favorable adjustment to tax reserves
|
- | (4,529 | ) | - | (4,529 | ) | ||||||||||
|
Non-GAAP
net income
|
$ | 27,908 | $ | 79,176 | $ | 235,176 | $ | 330,396 | ||||||||
|
Non-GAAP
net income as a percentage of net sales
|
16.1 | % | 30.4 | % | 26.0 | % | 31.9 | % | ||||||||
|
Diluted
net income per share, as reported
|
$ | 0.12 | $ | 0.40 | $ | 1.33 | $ | 1.40 | ||||||||
|
Non-GAAP
diluted net income per share
|
$ | 0.15 | $ | 0.42 | $ | 1.27 | $ | 1.57 | ||||||||
-
- - more - -
Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2009
Financial Results
Conference Call and
Updates:
Microchip
will host a conference call today, May 7, 2009 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 14, 2009.
A
telephonic replay of the conference call will be available at approximately 7:00
p.m. (Eastern Time) May 7, 2009 and will remain available until 5:00 p.m.
(Eastern Time) on May 14, 2009. Interested parties may listen to the
replay by dialing 719-457-0820 and entering access code 3474144.
Cautionary
Statement:
The
statements in this release relating to gross margins bottomed out in the March
quarter, improving gross margins in the June quarter, overall momentum in our
16-bit product line, being encouraged by the excellent growth in our 16-bit
products, continuing to gain market share in 16-bit, continuing to make good
progress in right sizing our inventory position, planning revenue for the June
quarter of $182 million, up about 5% sequentially, continued strong interest in
our products, the R&E transaction extending our strong market position, the
HI-TECH transaction extending our leadership in compiler technology, our
internal plan for the June quarter with respect to revenue, GAAP and Non-GAAP
gross margin, operating expenses as a percentage of sales, GAAP and Non-GAAP tax
rate, GAAP and Non-GAAP earnings per share, capital expenditures for the June
quarter and for fiscal 2010 and gross margins being affected by the
underutilization of our manufacturing facilities 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: the level of continued adverse economic conditions in the U.S. and
global economies, 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; foreign currency effects on our
business; the impact of any significant acquisitions that we make; 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.
-
- - more - -
Microchip
Technology Reports
Fourth
Quarter and Fiscal Year
2009
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 May 7, 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, PIC, KEELOQ, and dsPIC are registered trademarks of
Microchip Technology Inc. in the USA and other countries. nanoWatt
XLP, and PICDEM are trademarks of Microchip Technology Inc. All other
trademarks mentioned herein are the property of their respective
companies.
-
- - end - -