Microchip Technology (MCHP) Prelim. Q3 EPS Outpaces Views
Microchip Technology Incorporated (NASDAQ: MCHP) announced preliminary results for its third quarter of fiscal year 2016, as follows:
Microchip Consolidated Guidance - Non-GAAP (provided on November 4, 2015) | Non-GAAP Preliminary Results | |
Net Sales | $539.7 million to $563.5 million | about $552 million |
Gross Margin | 57.7% to 57.9% | about 57.9% |
Operating Expenses | 28.6% to 29.3% | about 28.5% |
Operating Income | 28.4% to 29.3% | about 29.4% |
Earnings per Diluted Share | 58 cents to 64 cents | 62 to 63 cents |
*** The Street sees Q3 revenue of $551.8 million and EPS of $0.61.
Microchip also announced today that it has signed a definitive agreement to acquire Atmel Corporation (NASDAQ: ATML) for $8.15 per share consisting of $7.00 per share in cash and $1.15 per share in Microchip common stock.
"Microchip's core business in the December quarter remained strong amidst the turbulence seen in the macro environment. Our revenue and EPS were both above the midpoint of our guidance provided on November 4, 2015, demonstrating the resilience of our business model," said Steve Sanghi, President and CEO of Microchip.
"With our core business and organization in good stead, we are confident as we embark on our acquisition of Atmel Corporation. The Atmel transaction is our most ambitious undertaking and our largest acquisition ever and will create a powerhouse in microcontrollers, analog and the internet of things (IoT)," added Mr. Sanghi.
Microchip will host a conference call today, January 19, 2016 at 5:00 p.m. (Eastern Time) to discuss the Atmel acquisition. Microchip will not be discussing its third fiscal quarter 2016 results on this conference call. We will hold our regular quarterly earnings conference call on February 3, 2016 at which time we will more fully discuss our third fiscal quarter 2016 results and have a question and answer session for analysts and investors. You may view our presentation material that we will refer to during the Atmel acquisition conference call at Microchip's website at www.microchip.com. This call will be simulcast over the Internet at www.microchip.com. The webcast will be available for replay until January 26, 2016.
A telephonic replay of the conference call will be available at approximately 8:00 p.m. (Eastern Time) January 19, 2016 and will remain available until 5:00 p.m. (Eastern Time) on January 26, 2016. Interested parties may listen to the replay by dialing 719-457-0820 and entering access code 219583.