Microchip Technology Incorporated (MCHP), a leading provider of microcontroller, mixed signal, analog and Flash-IP solutions, today narrowed the range and increased the mid-point of its prior guidance for net sales and earnings per share for its fiscal second quarter of fiscal 2016 ending September 30, 2015. Microchip's core business is tracking towards our original guidance while Micrel sales for the partial quarter are ahead of our original guidance.
Microchip previously provided guidance on August 3, 2015 for consolidated non-GAAP net sales to be between $532 million and $569 million with a mid- point of $550.5 million. Microchip now expects consolidated non-GAAP net sales to be between $545 million and $563 million with a mid-point of $554 million. Microchip now expects non-GAAP earnings per share to be between 60 and 66 cents per share. The original guidance for non-GAAP earning per share was between 58 and 66 cents per share.
"We have completed the repurchase of the 8.6 million shares of Microchip common stock that we issued in the Micrel acquisition. Together with upside in net sales and early expense reductions achieved, we expect Micrel now to be breakeven to our non-GAAP earnings per share for the quarter. We had earlier guided Micrel to be 1.5 cents dilutive to our September quarter results," said Steve Sanghi, Microchip's president and CEO.
Mr. Sanghi added, "We have accelerated the pace of integration of Micrel into Microchip systems and now expect to close the Micrel San Jose fab within one year of the acquisition date. Early analysis from our sales and field applications engineers has also identified significant revenue synergy with Micrel products at our customers. We now believe that we will see the full accretion from this acquisition to be reflected in Microchip's financial results by the second half of fiscal 2017, which is considerably earlier than we previously guided."