Microchip Technology Raises Revenue and EPS Guidance for June Quarter FY05
Wednesday May 26, 9:00 am ET
CHANDLER, Ariz.--(BUSINESS WIRE)--May 26, 2004--Microchip Technology Inc. (Nasdaq: MCHP - News), a leading provider of microcontroller and analog semiconductors, announced today that 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 its April 22, 2004 press release. Microchip had previously guided net sales to be $205 to $207 million, up approximately 7% to 8% sequentially and earnings per share to be about 25 cents. Based on strong available OEM backlog, strong sell-through in the distribution channel, and record bookings for the first two months of this quarter, Microchip now expects its net sales for the first quarter of fiscal 2005 to be between $210 and $212 million, or up 10% to 11% sequentially. Microchip expects earnings per share for the first quarter of fiscal 2005 to be about 26 cents. No conference call will be held in conjunction with this announcement. Microchip plans to announce its first quarter fiscal year 2005 financial results after the close of market on Tuesday, July 20, 2004.
"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. "Based on current lead times, this quarter is nearly booked and we are seeing strong backlog starting to build for the next quarter.
"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 concluded.
Microchip Technology will present at the Credit Suisse First Boston Semiconductor & Semiconductor Capital Equipment Conference on Wednesday, May 26, 2004 at 11:30 a.m. (Pacific Daylight Time). A live webcast and replay of the presentation will be made available by CSFB, and can be accessed on the Microchip Web site at www.microchip.com. The replay of the webcast will be available for a period of seven days following the presentation.
The statements in this release relating to our strong available OEM backlog, strong sell-through in the distribution channel, strong demand on all major product lines and in all geographies, net sales and earnings per share guidance for the quarter ended June 30, 2004, record bookings in the current quarter and being nearly booked, strong backlog building for next quarter, acceleration of capacity ramps, and expectations for distribution months of inventory 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; our ability to ramp products into volume production at Fab 4; our ability to ramp capacity at Fab 2; the mix of inventory we hold and our ability to satisfy short-term orders from our inventory; changes in utilization of our manufacturing capacity; our ability to continue to secure sufficient assembly and testing capacity and to ramp capacity at our wafer probe and assembly and test facilities; 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; costs and outcome of any tax audit or any litigation involving intellectual property, customers or other issues; disruptions in our business or our customers' businesses due to 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 Form 10-K and 10-Q. You can obtain copies of Forms 10-K and 10-Q and any 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 26, 2004 press release, or to reflect the occurrence of unanticipated events.
Microchip Technology Inc. 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, Ariz., Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip Web site at www.microchip.com.
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