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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (3053)	9/17/2002 8:38:30 AM
From: Proud_Infidel	Respond to of 25522

Microchip expects earnings to top earlier forecast EBN (09/16/02 05:39 p.m. EST) Microchip Technology Inc., Chandler, Ariz., today announced it expects earnings for the second quarter ending Sept. 30, to exceed the guidance provided on July 17, driven primarily by higher gross margins. Net sales in the second fiscal quarter are expected to increase 6 to 7% sequentially. Gross margins are expected to be between 53.5% and 54%, a 100 to 150 basis point improvement over the first quarter of fiscal 2003. Earnings per share are expected to be approximately 17 cents, exceeding the prior guidance of 16 cents. Earnings per share guidance is prior to the effect of any impairment charge that may be taken in the quarter. On July 17, 2002 and again on Aug. 23, 2002, Microchip announced that, with its acquisition of Fab 4 in Gresham, Ore., it would initiate an evaluation to determine if an impairment charge will be required in the September quarter for its Fab 3 in Puyallup, Wash. "Microchip's largest business segments, consumer and automotive, are continuing to show strong growth. In addition, automotive model year 2003 commenced production during this quarter and Microchip had significant new design wins in model year 2003, further enhancing our penetration in that segment," the company said. "We attribute our improvement in gross margin percentage to continued improvements in manufacturing efficiencies, record yield performance, improving product mix, improving average sales prices across product mix, cost reductions from lithography shrinks, transfer of Analog business from outside foundries to Microchip's fabs, and introduction of high margin proprietary products."