For the quarter ended June 30, 2017
- Record GAAP net sales of $972.1 million, up 7.7% sequentially and up 21.6% from the year ago quarter.
- Record Non-GAAP net sales of $972.1 million, up 7.7% sequentially and up 15.2% from the year ago quarter. Our updated guidance provided on June 5, 2017 was net sales of $943.3 million to $956.8 million.
- On a GAAP basis: gross margins of 60.1%; record operating income of $221.6 million; record net income of $170.6 million; and record EPS of 70 cents per diluted share. Our updated guidance provided on June 5, 2017 was EPS of 62 to 64 cents per diluted share.
- On a Non-GAAP basis: gross margins of 60.4%; record operating income of $364.3 million; record net income of $319.1 million and record EPS of $1.31 per diluted share, up 12.9% sequentially and up 56.0% from the year ago quarter. Our updated guidance provided on June 5, 2017 was EPS of $1.22 to $1.26 per diluted share.
- Record cash flow from operations of $345.0 million.
- Record quarterly dividend declared of 36.2 cents per share.
CHANDLER, Ariz., Aug. 03, 2017 (GLOBE NEWSWIRE) -- (NASDAQ:MCHP) - Microchip Technology Incorporated, a leading provider of microcontroller, mixed signal, analog and Flash-IP solutions, today reported results for the three months ended June 30, 2017 as summarized in the following table:
|(in millions, except per share amounts and percentages)||Three Months Ended June 30, 2017|
|Income Tax (Benefit) Provision||$(4.4)||$30.5|
|Earnings per Diluted Share||70 cents||$1.31|
1 See the "Use of Non-GAAP Financial Measures" section of this release.
GAAP net sales for the first quarter of fiscal 2018 were $972.1 million, up 21.6% from GAAP net sales of $799.4 million in the prior year's first fiscal quarter. GAAP net income from continuing operations for the first quarter of fiscal 2018 was $170.6 million, or 70 cents per diluted share, up from GAAP net loss from continuing operations of $(109.2) million, or (51) cents per diluted share, in the prior year's first fiscal quarter. The prior year's GAAP net income results were significantly adversely impacted by purchase accounting adjustments associated with our Atmel acquisition.
Non-GAAP net sales for the first quarter of fiscal 2018 were $972.1 million, up 15.2% from non-GAAP net sales of $844.0 million in the prior year's first fiscal quarter. Non-GAAP net income from continuing operations for the first quarter of fiscal 2018 was $319.1 million, or $1.31 per diluted share, up 64.5% from non-GAAP net income of $194.0 million, or 84 cents per diluted share, in the prior year's first fiscal quarter. For the first quarters of fiscal 2018 and fiscal 2017, our non-GAAP results exclude the effect of discontinued operations, share-based compensation, expenses related to our acquisition activities (including intangible asset amortization, inventory valuation costs, severance costs, and legal and other general and administrative expenses associated with acquisitions), preclusion of revenue recognition under GAAP for inventory in the distribution channel on the acquisition dates of our acquisitions, revenue recognition changes related to Atmel and Micrel distributors resulting from changes to business practices with those distributors, a loss on the settlement of our convertible debentures, non-cash interest expense on our convertible debentures, a gain on an equity method investment, the related income tax implications of these items, tax adjustments in accordance with ASC 740-270 and non-recurring tax events. Our non-GAAP results for the three month periods ended June 30, 2017 and June 30, 2016 reflect an adjustment for a manufacturing excursion issue with one of our suppliers. A reconciliation of our non-GAAP and GAAP results is included in this press release.
Microchip announced today that its Board of Directors has declared a record quarterly cash dividend on its common stock of 36.2 cents per share. The quarterly dividend is payable on September 5, 2017 to stockholders of record on August 21, 2017.
"Our June quarter financial results were extremely strong and represent an acceleration of our organic growth with our Microchip 2.0 initiative," said Steve Sanghi, Chief Executive Officer. "Microchip 2.0 combines the product, technology, system and employee strength of Microchip and its previous acquisitions and allows us to provide total system solutions to our customers by selling multiple products into the circuit boards that drive their end applications."
Mr. Sanghi added, "Our net sales were at record levels and well above the high end of our revised guidance. Our non-GAAP net sales for the June quarter were up 15.2% from the June quarter of a year ago. It is noteworthy that our year-over-year non-GAAP net sales comparison was not impacted by acquisitions since Atmel's full quarter revenue results were included in our June 2016 quarter net sales. GAAP net sales for the June 2017 quarter were up 21.6% from the June quarter of a year ago. Our gross margin percentage and operating profit percentage each exceeded the high end of our guidance on both a GAAP and non-GAAP basis and our earnings per share exceeded the high end of our revised guidance on both a GAAP and non-GAAP basis. Our non-GAAP gross margin crossed the 60% milestone and non-GAAP operating profit exceeded 37% for the first time. Non-GAAP earnings per share were up 56% from the June quarter of a year ago due to improving sales, gross margin percentage, operating expense leverage and successful execution of our core business as well as accretion from our acquisitions."