Microchip Technology Incorporated (NASDAQ: MCHP), a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, today reported results for the three months and fiscal year ended March 31, 2014.
Consolidated net sales for the fourth quarter of fiscal 2014 were $493.4 million, up 2.3% sequentially from net sales of $482.4 million in the immediately preceding quarter, and up 14.7% from net sales of $430.1 million in the prior year’s fourth quarter. Consolidated GAAP net income for the fourth quarter of fiscal 2014 was $111.5 million, or 50 cents per diluted share, up 5.8% from GAAP net income of $105.4 million, or 48 cents per diluted share, in the immediately preceding quarter, and up 86.8% from GAAP net income of $59.7 million, or 28 cents per diluted share, in the prior year’s fourth quarter.
Consolidated non-GAAP net income for the fourth quarter of fiscal 2014 was $141.3 million, or 64 cents per diluted share, up 6.3% from non-GAAP net income of $132.9 million, or 61 cents per diluted share, in the immediately preceding quarter, and up 29.3% from non-GAAP net income of $109.3 million, or 52 cents per diluted share, in the prior year’s fourth quarter. For the fourth quarters of fiscal 2014 and fiscal 2013, our non-GAAP results exclude the effect of 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), non-cash interest expense on our convertible debentures, and non-recurring tax events. A reconciliation of our non-GAAP and GAAP results is included in this press release.
Consolidated net sales for the fiscal year ended March 31, 2014 were $1.931 billion, an increase of 22.1% from net sales of $1.582 billion in the prior fiscal year. On a GAAP basis, consolidated net income for the fiscal year ended March 31, 2014 was $395.3 million, or $1.82 per diluted share, an increase of 210.3% from net income of $127.4 million, or 62 cents per diluted share in the prior fiscal year.
On a non-GAAP basis, consolidated net income for the fiscal year ended March 31, 2014 was $531.0 million, or $2.45 per diluted share, an increase of 36.7% from net income of $388.5 million, or $1.89 per diluted share, in the prior fiscal year.
Microchip also announced today that its Board of Directors declared a quarterly cash dividend on its common stock of 35.55 cents per share. The quarterly dividend is payable on June 3, 2014 to stockholders of record on May 21, 2014.
“We are very pleased with our execution in the March quarter and for fiscal year 2014,” said Steve Sanghi, President and CEO. “Our non-GAAP operating results were excellent and we exceeded the midpoint of our guidance in net sales, gross margin, and operating margins while setting a new record for earnings per share.”
Mr. Sanghi added, “The March quarter was our 94th consecutive quarter of profitability. During the quarter, we achieved 32.7% non-GAAP operating margins and we are making excellent progress towards our long-term model of 35% non-GAAP operating margins.”
“The March quarter set all-time records in net sales for total microcontrollers, 16-bit microcontrollers and 32-bit microcontrollers,” said Ganesh Moorthy, Chief Operating Officer. “We also set all-time records for 8-bit, 16-bit and 32-bit microcontroller revenue in fiscal 2014. Our revenues from 16-bit microcontrollers were up 44.2% and our revenues from 32-bit microcontrollers were up 73.0% in fiscal 2014 compared to fiscal 2013. Our microcontroller results continue to outperform the industry and we are gaining significant market share.”
Rich Simoncic, Vice President, Analog and Interface Products Division, said, “Our analog net sales were up 32.0% in fiscal 2014 compared to fiscal 2013. Our April 1, 2014 acquisition of Supertex adds high voltage analog products and process technologies to our portfolio, and we are excited about the long-term opportunities that the combined company can achieve.”
Eric Bjornholt, Microchip’s Chief Financial Officer, said, “Our cash and investment balance grew by a record $183.1 million in the March 2014 quarter prior to our dividend payment. The dividend that we announced today marks the 41st occasion that we have increased our dividend payment, and cumulative dividends paid are over $2.2 billion.”
Mr. Sanghi concluded, “We enter the June quarter with a good backlog position and the June quarter is normally a growth quarter for Microchip, coming off of the negative impact of the Lunar New Year on our Asia business in the March quarter. Given this backdrop we expect our non-GAAP net sales to be up between 5.3% and 8.3% sequentially. This guidance includes a projected $16.5 million in non-GAAP sales from Supertex. Without Supertex, revenue from Microchip’s historical business is expected to be up between 2% and 5% sequentially, which is in line with our net sales results for the last three June quarters.”