Microchip Technology (MCHP) Raises Q1 Guidance
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Price: $80.90 -0.07%
Revenue Growth %: +35.2%
Financial Fact:
Interest income: 819K
Today's EPS Names:
DIT, AMC, DPZ, More
Revenue Growth %: +35.2%
Financial Fact:
Interest income: 819K
Today's EPS Names:
DIT, AMC, DPZ, More
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Microchip Technology Incorporated (NASDAQ: MCHP), a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, today revised its financial guidance for its fiscal first quarter of 2014 ending June 30, 2013. Microchip now expects net sales to be up between 4% and 7% sequentially, and non-GAAP earnings per share to be between 52 and 56 cents per share. Microchip previously provided guidance on May 2, 2013 for net sales to be up between 2% and 6% and non-GAAP earnings per share to be between 50 and 54 cents per share. We expect GAAP earnings per share to be between 32 to 36 cents per share compared to our previous guidance for GAAP earnings per share of 30 to 34 cents per share. There will be no conference call associated with this press release. Microchip will be attending the Stephens 2013 Spring Technology Conference on Tuesday, June 4, 2013.
(Street sees Q1 EPS of $0.52)
We have continued to see a very strong bookings and business environment in the June quarter. We have received excellent visibility from our customers, allowing us to build our products in a good mix and meet our customers’ requirements for the quarter,” said Steve Sanghi, Microchip’s President and CEO.
Mr. Sanghi added, “We expect our inventory to be fully corrected by the end of the June 2013 quarter. Unless we take immediate action, the risk is that our inventory will go too low while the demand is strengthening. Therefore, we have taken immediate steps to end the rotating time off in our fabs and return our employees to full time work earlier than expected. We have asked our front-end as well as back-end manufacturing facilities to prepare to ramp production to meet the needs of our customers.”
“The promise of rotating time off is that it allows us to seamlessly and very quickly ramp production. A layoff back in November of 2012 would have likely resulted in a much longer response time in hiring and training employees before production could be ramped. We instead implemented a rotating time off in our fabs. We proved this as an effective management process in calendar year 2010, and we are proving it again during this cycle,” added Sanghi.
Sanghi concluded, “I want to thank all of our employees for their sacrifices during the down cycle and for keeping the company ready to ramp as the upturn materializes.”
(Street sees Q1 EPS of $0.52)
We have continued to see a very strong bookings and business environment in the June quarter. We have received excellent visibility from our customers, allowing us to build our products in a good mix and meet our customers’ requirements for the quarter,” said Steve Sanghi, Microchip’s President and CEO.
Mr. Sanghi added, “We expect our inventory to be fully corrected by the end of the June 2013 quarter. Unless we take immediate action, the risk is that our inventory will go too low while the demand is strengthening. Therefore, we have taken immediate steps to end the rotating time off in our fabs and return our employees to full time work earlier than expected. We have asked our front-end as well as back-end manufacturing facilities to prepare to ramp production to meet the needs of our customers.”
“The promise of rotating time off is that it allows us to seamlessly and very quickly ramp production. A layoff back in November of 2012 would have likely resulted in a much longer response time in hiring and training employees before production could be ramped. We instead implemented a rotating time off in our fabs. We proved this as an effective management process in calendar year 2010, and we are proving it again during this cycle,” added Sanghi.
Sanghi concluded, “I want to thank all of our employees for their sacrifices during the down cycle and for keeping the company ready to ramp as the upturn materializes.”
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