Record net sales of USD 492.7M for Microchip

GAAP net income for the second quarter of fiscal 2014 was USD 99.8 million, up 27.0% from GAAP net income of USD 78.6 million in the immediately preceding quarter, and up from a GAAP net loss of USD 21.2 million in the prior year’s second fiscal quarter. In the second quarter of fiscal 2014, GAAP net income included amortization of acquired intangibles of USD 23.7 million. “We were very pleased with our execution in the September quarter. Looking at the September quarter compared to the year ago quarter, microcontrollers grew 22.9%, analog grew 25.2% and licensing grew 23.4%, all achieving new revenue records,” said Steve Sanghi, President and CEO. “Our net sales, non-GAAP gross margin percentage and non-GAAP EPS all exceeded the high end of our guidance.” Mr. Sanghi added, “The revenue growth and the leverage we have achieved in gross margins and operating expenses have been outstanding and enabled us to achieve non-GAAP operating profit of 31.8% in the quarter ended September 30, 2013. Based on three factors: improving gross margins and operating margins in our microcontroller and analog businesses, achieving a substantially better business model from our SMSC acquisition, and our growing licensing business, we have revised our long-term model upwards to be between 34% and 36% non-GAAP operating profit.” “As we anticipated in our July earnings conference call, our 8-bit microcontrollers did set a new revenue record in the September quarter, as did our 16-bit and 32-bit microcontroller businesses. Our overall microcontroller net sales grew a strong 6.9% sequentially in the September quarter to achieve an all time record of $321 million,” said Ganesh Moorthy, Chief Operating Officer. “Our 16-bit microcontroller net sales were up 10.9% sequentially in the September quarter, achieving a new record for net sales. 16-bit microcontroller net sales was also up 48.1% over the year ago quarter. Our 32-bit microcontroller net sales were up 24% sequentially in the September quarter, registering another strong quarter of growth to also set a new record. 32-bit microcontroller net sales were also up 53.4% over the year ago quarter.”