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To: MythMan who wrote (345177)	10/8/2007 3:43:59 PM
From: Giordano Bruno	Respond to of 436258

It's a bear fund, he's gotta make a buck. -g-

To: MythMan who wrote (345177)	10/8/2007 5:05:34 PM
From: Giordano Bruno	Read Replies (2) \| Respond to of 436258

Microchip preannounces Q2 results below consensus (36.62 +0.12) NOTE: This is a very well managed company with tens of thousands of customers. Their microcontrollers go into toys, dishwashers, cars, tvs, musical instruments,etc. MCHP sees Q2 GAAP EPS of $0.35 vs $0.37 consensus; sees Q2 revs of $258-259 mln vs $267 mln consensus. For the September quarter of fiscal 2008, Microchip expects to be able to sustain near record level gross margins of approximately 60.4%. "Our business results for the September quarter have been adversely impacted by several factors... Net sales associated with the U.S. housing market continued to be weak, and we also experienced weakness in other segments of our consumer-related business... Geographically, net sales in both the Americas and Asia were below our expectations. We believe that weakness in Asia is tied to U.S. multinational companies who manufacture at Asian subcontractors. Europe, although down sequentially, met our expectations based on the normal seasonal trends for the region... Our book-to-bill ratio for the September quarter was 0.94, leading our business into a more seasonally challenging period in the December quarter. While we are not in a position to give specific guidance at this point, we expect that December net sales will be sequentially down. Based on the current level of uncertainty in the consumer segment of the business, we expect that the range of our guidance will be wider than our typical level."