This is a very bullish report from MCHP. I have models where I track the quarterly info for about 20 semis. I am seeing the largest sequential Q3 vs. Q2 sales in several years. As I suspected based on what the companies were saying on their Q2 cc's, the summer was unusually strong.
I would like to think that things were stronger than normal for xicor in Q3 also. If it was and they take the restructuring charge, the stage will be set for the next leg up.
Microchip Technology Reports Record Second Quarter Results
CHANDLER, Ariz.--(BUSINESS WIRE)--Oct. 14, 1999--Microchip Technology Inc. (Nasdaq:MCHP - news), the world's leading manufacturer of field programmable microcontrollers and related products for high-volume embedded control applications, reported record net sales, bookings and earnings for its second quarter of fiscal 2000 ended Sept. 30, 1999.
Net sales for the quarter were $118.0 million, an increase of 14 percent from sales of $103.8 million in the prior year's second quarter and up 10 percent sequentially from $107.7 million in the immediately preceding quarter.
Diluted earnings per share were 43 cents on 53.9 million average shares outstanding, up 30 percent from 33 cents in the prior year's second quarter, and up 14 percent from diluted earnings per share of 38 cents in the immediately preceding quarter.
``Microchip's business was unusually strong in the September quarter, beating consensus estimates for sales and earnings by a fairly wide margin and generating some of the strongest indicators of future growth ever experienced by the Company,' said Steve Sanghi, Microchip president and chief executive officer.
``The most positive forward indicators relate to the tremendous growth in bookings and backlog during the September quarter and the resulting increase in the Company's future sales visibility.
``Record bookings in both the June and September quarters - with book-to-bill ratios of 1.21 and 1.41, respectively - have lessened Microchip's dependency on turns orders to the lowest point in the Company's ten-year history.
``Combined with improved gross margin performance, well-controlled operating expenses, a stable pricing environment, strong design win activity and steady stream of new products, it appears that Microchip's business is firing on all cylinders in the current business environment.'
The statements contained in this release relating to the favorable indicators for future growth are forward-looking statements.
These statements involve risks and uncertainties which could cause actual results to differ materially, including, but not limited to future demand for the company's products, inventory mix and the timing of customer orders, the level of orders that are received and can be shipped in a quarter, continued design wins for new products, the company's abilities to maintain operating margins, general economic conditions, and other risks detailed in the company's 10-Qs and the 10-K for the fiscal year ended March 31, 1999 filed with the Securities and Exchange Commission.
Microchip Technology Inc. manufactures the PICmicro© family of RISC-based microcontrollers with OTP, Flash, and ROM memory technologies; serial EEPROMs; KEELOQ© code-hopping devices; related microperipheral products including RFID, analog and system supervisors ICs; and other specialized semiconductor products.
These products target thousands of embedded control applications in the consumer, automotive, office automation, communications and industrial markets. Microchip's quality systems are ISO 9001 and QS-9000 certified. Headquartered near Phoenix in Chandler, Microchip employs approximately 2,000 people worldwide and has sales offices throughout Asia, Europe, Japan and the Americas.
Additional company information is available on Microchip's website at: www.microchip.com.
The Microchip logo and name are registered trademarks of Microchip Technology Inc. All rights reserved.
Microchip Technology Inc. and Subsidiaries
Consolidated Statement of Income
(in thousands except per share amounts)
Three Months Ended Six Months Ended
Sept. 30, Sept. 30,
1999 1998 1999 1998
Net sales $ 118,021 $ 103,780 $ 225,731 $ 203,269
Cost of sales 57,244 52,307 110,199 102,538
Gross profit 60,777 51,473 115,532 100,731
Operating expenses:
Research and
development 10,652 10,572 20,959 20,788
Selling, general
and administrative 19,076 16,237 35,942 32,291
--------- --------- --------- ---------
29,728 26,809 56,901 53,079
Operating income
before special charge 31,049 24,664 58,631 47,652
Special charge 0 0 0 5,500
Operating income 31,049 24,664 58,631 42,152
Other income and
expenses, net 577 (605) 664 (594)
Income before
income taxes 31,626 24,059 59,295 41,558
Income taxes 8,538 6,496 16,008 11,221
Net income before
special charge $ 23,088 $ 17,563 $ 43,287 $ 34,352
Net income $ 23,088 $ 17,563 $ 43,287 $ 30,337
Basic net income
per share before
special charge $ 0.45 $ 0.34 $ 0.85 $ 0.67
Basic net income
per share $ 0.45 $ 0.34 $ 0.85 $ 0.59
Diluted net income
per share before
special charge $ 0.43 $ 0.33 $ 0.80 $ 0.64
Diluted net income
per share $ 0.43 $ 0.33 $ 0.80 $ 0.56
Basic shares used
in calculation 50,787 50,963 50,879 51,546
Diluted shares
used in calculation 53,916 53,358 53,842 53,940 |
