Microchip boosts fab production amid stronger forecast
Silicon Strategies
05/26/2004, 9:59 AM ET
CHANDLER, Ariz.--Microchip Technology Inc. Wednesday (May 26) said it is accelerating its fab expansion efforts amid stronger-than-expected sales in the chip arena.
Microchip also said its net sales and earnings for its first quarter of fiscal year 2005 ending June 30, 2004 are expected to exceed the upper end of prior guidance originally provided in April 22. Microchip had previously guided net sales to be $205-to-$207 million, up approximately 7-to-8 percent sequentially and earnings per share to be about 25 cents.
Now, Microchip expects its net sales for the first quarter of fiscal 2005 to be between $210-to-$212 million, or up 10-to-11 percent sequentially. Microchip expects earnings per share for the first quarter of fiscal 2005 to be about 26 cents.
"Led by our PIC Flash Microcontrollers, we are experiencing strong demand on all major product lines and in all geographies. We have seen record bookings in the first two months of the quarter," said Steve Sanghi, Microchip's president and CEO, in a statement.
"Based on current lead times, this quarter is nearly booked and we are seeing strong backlog starting to build for the next quarter," he said. ""Therefore, we are accelerating capacity ramps in our Fab 4, Fab 2, wafer probe, and assembly and test manufacturing facilities. We are also encouraged by strong sell-through from the distribution channel, and we expect distribution months of inventory for the first quarter of fiscal 2005 to be approximately flat with the last quarter," Sanghi added.
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