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Microchip Technology Announces Record Net Sales

Microchip Technology Incorporated (NASDAQ: MCHP), a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, today reported results for the three months ended December 31, 2012 as summarized in the following table:

(in millions, except earnings per diluted share and percentages)       Three Months Ended December 31, 2012
       

GAAP1

   

% of Net
Sales

   

Non-
GAAP

   

% of Net
Sales

Net Sales       $ 416.0             $ 416.0      
Gross Margin       $ 200.4       48.2 %     $ 233.1     56.0 %
Operating Income       $ 17.4       4.2 %     $ 105.6     25.4 %
Other Expense       $ 7.7             $ 5.6      
Income Tax Provision (Benefit)         ($0.5 )           $ 15.5      
Net Income       $ 10.2       2.4 %     $ 84.5     20.3 %
Earnings per Diluted Share         5 cents               41 cents      

1 See the “Use of Non-GAAP Financial Measures” section of this release.

Consolidated GAAP net sales for the third quarter of fiscal 2013 were a record $416 million, up 8.5% sequentially from net sales of $383.3 million in the immediately preceding quarter, and up 26.4% from net sales of $329.2 million in the prior year’s third fiscal quarter. Consolidated GAAP net income for the third quarter of fiscal 2013 was $10.2 million, or five cents per diluted share, up from a GAAP net loss of $21.2 million, or 11 cents per diluted share, in the immediately preceding quarter, and down from GAAP net income of $77.5 million, or 38 cents per diluted share, in the prior year’s third fiscal quarter. The GAAP results were negatively impacted by the expenses associated with our acquisition activities as more fully described later in this release.

Consolidated non-GAAP net sales for the third quarter of fiscal 2013 were a record $416 million, up 2.0% sequentially from non-GAAP net sales of $407.8 million in the immediately preceding quarter, and up 26.4% from non-GAAP net sales of $329.2 million in the prior year’s third fiscal quarter. Consolidated non-GAAP net income for the third quarter of fiscal 2013 was $84.5 million, or 41 cents per diluted share, down 13.5% from non-GAAP net income of $97.7 million, or 48 cents per diluted share, in the immediately preceding quarter, and down 1.1% from non-GAAP net income of $85.4 million, or 42 cents per diluted share, in the prior year’s third fiscal quarter. For the third quarters of fiscal 2013 and fiscal 2012, our non-GAAP results exclude the effect of share-based compensation, expenses related to our acquisition activities (including intangible asset amortization, inventory valuation costs, restructuring costs, earn out adjustments and legal and other general and administrative expenses associated with acquisitions), and non-cash interest expense on our convertible debentures. A reconciliation of our non-GAAP and GAAP results is included in this press release.

Microchip also announced today that its Board of Directors declared a quarterly cash dividend on its common stock of 35.3 cents per share. The quarterly dividend is payable on March 7, 2013 to stockholders of record on February 21, 2013.

“We were pleased with our execution in the December quarter despite a very challenging macroeconomic environment,” said Steve Sanghi, President and CEO. “Our net sales, gross margin, operating expenses and earnings per share were all better than the mid-point of our guidance given on November 8, 2012.”

Mr. Sanghi added, “We achieved an all-time record in net sales of $416 million in the December quarter. Net sales of microcontroller products were up 1.8% sequentially at $266 million, while achieving record sales for 16-bit as well as 32-bit microcontrollers, thus exemplifying our continued strength in this market.”

“Our 16-bit microcontroller business was up 12.6% sequentially in the December quarter, achieving a new record for revenue,” said Ganesh Moorthy, Chief Operating Officer. “We continue to expand the breadth of the 16-bit solutions we are offering, and customers we are serving, as we continue to gain share in this market.”

Mr. Moorthy continued, “Our 32-bit microcontroller revenue was up 17.4% sequentially in the December quarter, also achieving a new record. We are continuing to win new designs and expanding into new applications to enable further growth in revenue and market share.”

Mr. Moorthy concluded, “Our analog revenue grew 7.7% sequentially in the December quarter to achieve a new record, and our analog business continues to perform exceptionally well. Analog revenue represented 22.4% of Microchip’s overall revenue in the December quarter, the highest proportion of our revenue ever.”

Eric Bjornholt, Microchip’s Chief Financial Officer, said, “We made good progress in reducing our inventory position in the December quarter. The actions that we implemented to reduce factory output in the December quarter are bringing inventory levels down and we expect to make further progress in the March quarter.”

Mr. Bjornholt added, “We had strong free cash flow generation in the December quarter at $123.2 million prior to our dividend payment of $68.7 million. We ended the quarter with $1.77 billion in cash and investments on the balance sheet.”

Mr. Sanghi concluded, “The March quarter has the seasonal effect of the Chinese New Year. However, we are starting to see exceptionally strong bookings and expedite activity in our business driven by solid demand and a robust design win pipeline. We believe the December quarter was the bottom of this cycle for Microchip, and we expect our total net sales in the March quarter to be up between one and four percent sequentially.”

Microchip’s Recent Highlights:

  • Microchip introduced the world’s first electrical-field-based 3D gesture controller, featuring its patented GestIC® technology, which enables the next dimension in intuitive, gesture-based, non-contact and mobile-friendly 3D user interfaces for a broad range of end products. The configurable MGC3130 3D gesture controller provides low-power, precise, fast and robust hand position tracking, along with free-space gesture recognition.
  • Continuing its string of recent innovations, Microchip launched the world’s first analog-based power management controller with an integrated MCU, for flexible, efficient power conversion. This followed announcements of a high-voltage analog buck PWM controller with integrated MOSFET drivers, and Microchip’s first family of high-speed, low figure-of-merit MOSFETs. Together, these new offerings represent a major expansion of Microchip’s mid-voltage controller and MOSFET portfolio, providing a host of industry-leading options to the designers of DC/DC power-conversion applications.
  • In the 32-bit microcontroller arena, Microchip boosted performance by 25%, on its low-cost, small-package PIC32 MX1/MX2 series. These feature-packed MCUs include I2S for audio applications, along with capacitive touch and USB OTG. To enable cost-effective multitouch displays, Microchip also introduced the PIC32 GUI Development Board with Projected-Capacitive Touch. This board demonstrates how the high-performance PIC32 eliminates the cost and complexity of an external graphics controller.
  • The Company also announced the expansion of its mTouch™ Sensing Solutions portfolio, with four turnkey controllers for multitouch projected-capacitive touchscreens and touchpads, proximity detection, and haptic touch feedback.
  • On the wireless front, Microchip launched the world’s first wireless-audio solution for iOS, Android™, Windows® 8 and Mac®—the new JukeBlox® 3.2 platform and software development kit. This platform expansion added seamless integration of cloud-based music services and simultaneous Wi-Fi® audio streaming to multiple home-audio products.
  • Microchip also introduced a Bluetooth® module for streaming audio. This pre-certified module builds on the portfolio’s data capabilities with added support for streaming music and voice, while maintaining low power consumption and a small form factor.
  • The Company’s industry-leading memory catalog continued its steady expansion, with three new SPI SuperFlash® memory devices that feature low power consumption and an extended operating-voltage range.
  • The industry continued to recognize Microchip’s technology leadership and innovation, in the form of prestigious annual awards from top publications. EDN Magazine named six of Microchip’s products to its 2012 Hot 100 list, across five categories. Included in that list was the brand-new GestIC® Technology, which was also selected by Electronic Design Magazine for their 2012 “Best of” awards, in the Digital category. The readers of ECN Magazine chose Microchip’s JukeBlox Wireless Audio Platform for a Readers Choice Tech Award, in the “Boards & Modules” category. Finally, Microchip’s 8-bit PIC® MCUs with Configurable Logic were named finalists by the editors of Design News Magazine, in their Golden Mousetrap Awards.

Fourth Quarter Fiscal Year 2013 Outlook:

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.

      Microchip Consolidated Guidance
       
GAAP
   

Non-GAAP
Adjustments

   
Non-GAAP1
                     
Net Sales       $420.2 to $432.7 million           $420.2 to $432.7 million
Gross Margin2       55.0% to 55.5%     $3.1 to $3.3 million     55.75% to 56.25%
Operating Expenses2       42.25% to 43.25%     $54.6 to $56.3 million     29.25% to 30.25%
Other Expense       $6.7 million     $2.1 million     $4.6 million
Income Tax Expense       $4.9 to $6.1 million     $3.8 to $3.9 million     $8.7 to $10.0 million
Net Income       $37.7 to $44.5 million     $56.1 to $57.7 million     $93.8 to $102.2 million

Diluted Common Shares Outstanding3

     

Approximately 209
million shares

   

Approximately 0.3
million shares

   

Approximately 208.7
million shares

Earnings per Diluted Share       18 to 21 cents     27 to 28 cents     45 to 49 cents

1

  See the “Use of Non-GAAP Financial Measures” section of this release.

2

Earnings per share have been calculated based on the diluted shares outstanding of Microchip on a consolidated basis.

3

See Footnote 2 under the “Use of Non-GAAP Financial Measures” section of this release.
  • Microchip’s inventory days at March 31, 2013 are expected to be about 123 to 129 days. Our inventory position enables us to continue to service our customers with very short lead times while allowing us to control future capital expenditures. Our actual inventory level will depend on the inventory that our distributors decide to hold to support their customers, overall demand for our products and our production levels.
  • Capital expenditures for the quarter ending March 31, 2013 are expected to be approximately $24 million. Capital expenditures for all of fiscal year 2013 are anticipated to be approximately $60 million. We are continuing to take actions to selectively invest in the equipment needed to support the expected growth of our new products and technologies.
  • We expect net cash generation during the March quarter of approximately $110 million to $130 million prior to the dividend payment and our acquisition-related activities.
  • Included in the GAAP and non-GAAP income tax expense guidance for the quarter ended March 31, 2013 is a $5.6 million favorable impact from the retroactive reinstatement of the Research and Experimentation Tax Credit.

1

 

Use of Non-GAAP Financial Measures: Our Non-GAAP adjustments, where applicable, include the effect of share-based compensation, expenses related to our acquisition activities (including intangible asset amortization, inventory valuation costs, restructuring costs, severance costs, earn-out adjustments and legal and other general and administrative expenses associated with acquisitions), losses on equity securities, legal settlements, and non-cash interest expense on our convertible debentures, the related income tax implications of these items and nonrecurring tax events.

 
We are required to estimate the cost of certain forms of share-based compensation, including employee stock options, restricted stock units and our employee stock purchase plan, and to record a commensurate expense in our income statement. Share-based compensation expense is a non-cash expense that varies in amount from period to period and is affected by the price of our stock at the date of grant. The price of our stock is affected by market forces that are difficult to predict and are not within the control of management. The value of our equity securities varies in amount from period to period and is affected by fluctuations in the market prices of such securities that we cannot predict and are not within the control of management. The non-GAAP adjustments related to the impact of our acquisitions, legal settlements, nonrecurring tax events and a portion of our interest expense related to our convertible debentures are either non-cash expenses or non-recurring expenses related to such transactions. Accordingly, management excludes all of these items from its internal operating forecasts and models.
 
We are using non-GAAP net sales, non-GAAP gross profit, non-GAAP gross profit percentage, non-GAAP operating expenses in dollars and as a percentage of sales including non-GAAP research and development expenses and non-GAAP selling, general and administrative expenses, non-GAAP operating income, non-GAAP other expense, net, non-GAAP income tax/tax rate, non-GAAP net income, and non-GAAP diluted earnings per share which exclude the items noted in the immediately preceding paragraph, as applicable, to permit additional analysis of our performance.
 
Management believes these non-GAAP measures are useful to investors because they enhance the understanding of our historical financial performance and comparability between periods. Many of our investors have requested that we disclose this non-GAAP information because they believe it is useful in understanding our performance as it excludes non-cash and other charges that many investors feel may obscure our underlying operating results. Management uses these non-GAAP measures to manage and assess the profitability of its business. Specifically, we do not consider such items when developing and monitoring our budgets and spending. As described above, the economic substance behind our decision to exclude such items relates either to these charges being non-cash in nature, or to the one-time nature of the events, or in the case of distributor inventory acquired in an acquisition being recognized as net sales for non-GAAP purposes on sell-through to provide comparability between periods for the results of the acquired company, or in the case of our equity securities, because such item is difficult to predict and not within the control of management. Our determination of the above non-GAAP measures might not be the same as similarly titled measures used by other companies, and it should not be construed as a substitute for amounts determined in accordance with GAAP. There are limitations associated with using non-GAAP measures, including that they exclude financial information that some may consider important in evaluating our performance. Management compensates for this by presenting information on both a GAAP and non-GAAP basis for investors and providing reconciliations of the GAAP and non-GAAP results.
 

2

Diluted Common Shares Outstanding can vary for, among other things, the trading price of our common stock, the actual exercise of options or vesting of restricted stock units, the potential for incremental dilutive shares from our convertible debentures (additional information regarding our share count is available in the investor relations section of our website under the heading “Supplemental Financial Information”), and the repurchase or the issuance of stock. The diluted common shares outstanding presented in the guidance table above assumes an average Microchip stock price in the March 2013 quarter of $35 per share (however, we make no prediction as to what our actual share price will be for such period or any other period and we cannot estimate what our stock option exercise activity will be during the quarter).

 

3

Generally, gross margin fluctuates over time, driven primarily by the mix of microcontrollers, analog products and memory products sold and licensing revenue; variances in manufacturing yields; fixed cost absorption; wafer fab loading levels; inventory reserves; pricing pressures in our non-proprietary product lines; and competitive and economic conditions. Operating expenses fluctuate over time, primarily due to net sales and profit levels.

 
                   
MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share amounts)

(Unaudited)

 
Three Months Ended Nine Months Ended

December 31,

December 31,

2012 2011 2012 2011
Net sales $ 416,047 $ 329,156 $ 1,151,479 $ 1,044,265
Cost of sales   215,619     143,668     552,059     440,617  
Gross profit 200,428 185,488 599,420 603,648
 
Operating expenses:
Research and development 71,377 44,256 184,285 134,937
Selling, general and administrative 69,368 51,087 196,727 158,603
Amortization of acquired intangible assets 39,711 2,678 71,615 8,161
Special charges (income)   2,559     (660 )   24,953     (660 )
  183,015     97,361     477,580     301,041  
 
Operating income 17,413 88,127 121,840 302,607
(Losses) gains on equity method investments (229 ) 14 (382 ) (60 )
Other expense, net   (7,492 )   (4,464 )   (18,783 )   (14,774 )
 
Income before income taxes 9,692 83,677 102,675 287,773
Income tax (benefit) provision   (481 )   6,188     34,976     31,704  
 
Net income $ 10,173   $ 77,489   $ 67,699   $ 256,069  
 
Basic net income per common share $ 0.05   $ 0.40   $ 0.35   $ 1.34  
Diluted net income per common share $ 0.05   $ 0.38   $ 0.33   $ 1.26  
 
Basic common shares outstanding   194,958     191,640     194,157     190,854  
Diluted common shares outstanding   204,405     203,291     204,553     202,686  
 
 
 
MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

           
 
ASSETS
 
December 31, March 31,
2012 2012
(Unaudited)
Cash and short-term investments $ 1,622,303 $ 1,459,009
Accounts receivable, net 177,502 170,201
Inventories 261,594 217,278
Other current assets   235,184   169,373
Total current assets 2,296,583 2,015,861
 
Property, plant & equipment, net 522,737 516,611
Long-term investments 149,662 328,586
Other assets   874,542   222,718
 
Total assets $ 3,843,524 $ 3,083,776
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Accounts payable and other current liabilities $ 173,668 $ 139,164
Deferred income on shipments to distributors   122,611   108,709
Total current liabilities 296,279 247,873
 
Long-term line of credit 610,000 -
Convertible debentures 361,409 355,050
Long-term income tax payable 181,418 70,490
Deferred tax liability 445,492 411,368
Other long-term liabilities 21,840 8,322
 
Stockholders’ equity   1,927,086   1,990,673
 
Total liabilities and stockholders’ equity $ 3,843,524 $ 3,083,776
 
 
 
MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(in thousands except per share amounts and percentages)
(Unaudited)
                   
 
RECONCILIATION OF GAAP NET SALES TO NON-GAAP NET SALES
Three Months Ended Nine Months Ended
December 31, December 31,
2012 2011 2012 2011
Net sales, as reported $ 416,047 $ 329,156 $ 1,151,479 $ 1,044,265
Distributor revenue recognition adjustment   -     -     24,748     -  
Non-GAAP net sales $ 416,047   $ 329,156   $ 1,176,227   $ 1,044,265  
 
 
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT
Three Months Ended Nine Months Ended
December 31, December 31,
2012 2011 2012 2011
Gross profit, as reported $ 200,428 $ 185,488 $ 599,420 $ 603,648
Distributor revenue recognition adjustment - - 15,868 -
Share-based compensation expense 1,834 1,369 5,758 4,376

Acquisition-related acquired inventory valuation and other costs

  30,808     -     54,958     -  
Non-GAAP gross profit $ 233,070   $ 186,857   $ 676,004   $ 608,024  
Non-GAAP gross profit percentage

56.0

%

56.8

%

57.5

%

58.2

%

 
 
RECONCILIATION OF GAAP RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES
Three Months Ended Nine Months Ended
December 31, December 31,
2012 2011 2012 2011
Research and development expenses, as reported $ 71,377 $ 44,256 $ 184,285 $ 134,937
Share-based compensation expense

(6,172

)

(3,851

)

(16,562

)

(10,820

)

Acquisition-related costs   -     -    

(17

)

  -  
Non-GAAP research and development expenses $ 65,205   $ 40,405   $ 167,706   $ 124,117  

Non-GAAP research and development expenses as a percentage of net sales

15.7

%

12.3

%

14.3

%

11.9

%

 
 
RECONCILIATION OF GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSES TO NON-GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Three Months Ended Nine Months Ended
December 31, December 31,
2012 2011 2012 2011
Selling, general and administrative expenses, as reported $ 69,368 $ 51,087 $ 196,727 $ 158,603
Share-based compensation expense

(6,114

)

(4,742

)

(22,339

)

(13,274

)

Acquisition-related costs  

(1,035

)

 

(241

)

 

(6,054

)

 

(863

)

Non-GAAP selling, general and administrative expenses $ 62,219   $ 46,104   $ 168,334   $ 144,466  

Non-GAAP selling, general and administrative expenses as a percentage of net sales

15.0

%

14.0

%

14.3

%

13.8

%

 
 
RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP OPERATING INCOME
Three Months Ended Nine Months Ended
December 31, December 31,
2012 2011 2012 2011
Operating income, as reported $ 17,413 $ 88,127 $ 121,840 $ 302,607
Distributor revenue recognition adjustment - - 15,868 -
Share-based compensation expense 14,120 9,962 44,659 28,470

Acquisition-related acquired inventory valuation and other costs

31,843 241 61,029 863
Amortization of acquired intangible assets 39,711 2,678 71,615 8,161
Special charges (income)   2,559    

(660

)

  24,953    

(660

)

Non-GAAP operating income $ 105,646   $ 100,348   $ 339,964   $ 339,441  
Non-GAAP operating income as a percentage of net sales

25.4

%

30.5

%

28.9

%

32.5

%

 
 
RECONCILIATION OF GAAP OTHER EXPENSE, NET TO NON-GAAP OTHER EXPENSE, NET
Three Months Ended Nine Months Ended
December 31, December 31,
2012 2011 2012 2011
Other expense, net, as reported

$

(7,492

)

$

(4,464

)

$

(18,783

)

$

(14,774

)

Convertible debt non-cash interest expense 2,089 1,909 6,106 5,580
Losses on equity securities   -     -     -     1,878  
Non-GAAP other expense, net

$

(5,403

)

$

(2,555

)

$

(12,677

)

$

(7,316

)

Non-GAAP other expense, net, as a percentage of net sales

-1.3

%

-0.8

%

-1.1

%

-0.7

%

 
 

RECONCILIATION OF GAAP INCOME TAX (BENEFIT) PROVISION TO NON-GAAP INCOME TAX PROVISION

Three Months Ended Nine Months Ended
December 31, December 31,
2012 2011 2012 2011
Income tax (benefit) provision, as reported

$

(481

)

$ 6,188 $ 34,976 $ 31,704
Income tax rate, as reported

-5.0

%

7.4

%

34.1

%

11.0

%

Distributor revenue recognition adjustment - - 3,404 -
Share-based compensation expense 2,755 1,261 7,496 3,655

Acquisition-related acquired inventory valuation costs, intangible asset amortization and other costs

7,416 143 12,803 464
Special charges 1,367 - 12,843 -
Convertible debt non-cash interest expense 784 716 2,291 2,093
Non-recurring tax event 3,645 4,075

(26,071

)

4,075
Losses on equity securities   -     -     -     704  
Non-GAAP income tax provision $ 15,486   $ 12,383   $ 47,742   $ 42,695  
Non-GAAP income tax rate

15.5

%

12.7

%

14.6

%

12.9

%

 
 
RECONCILIATION OF GAAP NET INCOME AND GAAP DILUTED NET INCOME PER SHARE TO NON-GAAP NET INCOME AND NON-GAAP DILUTED NET INCOME PER SHARE
Three Months Ended Nine Months Ended
December 31, December 31,
2012 2011 2012 2011
Net income, as reported $ 10,173 $ 77,489 $ 67,699 $ 256,069
Distributor revenue recognition adjustment, net of tax effect - - 12,464 -
Share-based compensation expense, net of tax effect 11,365 8,701 37,163 24,815

Acquisition-related acquired inventory valuation costs, intangible asset amortization and other costs, net of tax effect

64,138 2,776 119,841 8,560
Special charges (income), net of tax effect 1,192

(660

)

12,110

(660

)

Convertible debt non-cash interest expense, net of tax effect 1,305 1,193 3,815 3,487
Non-recurring tax events

(3,645

)

(4,075

)

26,071

(4,075

)

Losses on equity securities, net of tax effect   -     -     -     1,174  
Non-GAAP net income $ 84,528   $ 85,424   $ 279,163   $ 289,370  
Non-GAAP net income as a percentage of net sales

20.3

%

26.0

%

23.7

%

27.7

%

 
Diluted net income per share, as reported $ 0.05   $ 0.38   $ 0.33   $ 1.26  
Non-GAAP diluted net income per share $ 0.41   $ 0.42   $ 1.37   $ 1.43  
Diluted common shares outstanding, non-GAAP   204,123     202,749     204,231     202,090  
 

Microchip will host a conference call today, February 7, 2013 at 5:00 p.m. (Eastern Time) to discuss this release. This call will be simulcast over the Internet at www.microchip.com. The webcast will be available for replay until February 14, 2013.

A telephonic replay of the conference call will be available at approximately 8:00 p.m. (Eastern Time) February 7, 2013 and will remain available until 8:00 p.m. (Eastern Time) on February 14, 2013. Interested parties may listen to the replay by dialing 719-457-0820 and entering access code 4879987.

Cautionary Statement:

The statements in this release relating to continued strength in our 16- and 32-bit microcontroller market, continuing to expand the breadth of our 16-bit solutions and customers that we are serving, continuing to gain share in the 16-bit market, continuing to win new 32-bit designs, expanding into new applications and enabling further revenue and market share growth in our 32-bit business, our analog business continuing to perform exceptionally well, bringing inventory levels down and expecting to make further progress in the March quarter, exceptionally strong bookings and expedite activity in our business, solid demand and robust design win pipeline, our expectation that the December quarter marked the bottom of this cycle for Microchip, expecting total net sales in the March 2013 quarter to be up between one and four percent sequentially, our fourth quarter fiscal 2013 guidance (GAAP and Non-GAAP as applicable) including net sales, gross margin, operating expenses, other expense, income tax expense, net income, diluted common shares outstanding, earnings per diluted share, inventory days, capital expenditures for the March quarter and for fiscal 2013, inventory position enabling us to service our customers with very short lead times while allowing us to control future capital expenditures, expected growth of our new products and technologies, net cash generation and assumed average stock price in the March 2013 quarter are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: the continued economic uncertainty or any unexpected fluctuations or further weakness in the U.S. and global economies, changes in demand or market acceptance of our products and the products of our customers; the mix of inventory we hold and our ability to satisfy short-term orders from our inventory; changes in utilization of our manufacturing capacity and our ability to effectively manage our production levels; competitive developments including pricing pressures; the level of orders that are received and can be shipped in a quarter; the level of sell-through of our products through distribution; changes or fluctuations in customer order patterns and seasonality; foreign currency effects on our business; our ability to continue to realize the expected benefits of our SMSC acquisition; the impact of any other significant acquisitions that we may make; costs and outcome of any current or future tax audit or any litigation involving intellectual property, customers or other issues; our actual average stock price in the March 2013 quarter and the impact such price will have on our share count; disruptions in our business or the businesses of our customers or suppliers due to natural disasters (including any floods in Thailand), terrorist activity, armed conflict, war, worldwide oil prices and supply, public health concerns or disruptions in the transportation system; and general economic, industry or political conditions in the United States or internationally.

For a detailed discussion of these and other risk factors, please refer to Microchip's filings on Forms 10-K and 10-Q. You can obtain copies of Forms 10-K and 10-Q and other relevant documents for free at Microchip’s website (www.microchip.com) or the SEC's website (www.sec.gov) or from commercial document retrieval services.

Stockholders of Microchip are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this February 7, 2013 press release, or to reflect the occurrence of unanticipated events.

About Microchip:

Microchip Technology Incorporated is a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at www.microchip.com.

Note: The Microchip name and logo, GestIC, JukeBlox, SuperFlash, and PIC are registered trademarks of Microchip Technology Inc. in the USA and other countries. mTouch is a trademark of Microchip Technology Inc. in the U.S.A. and other countries. All other trademarks mentioned herein are the property of their respective companies.

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@ThingsExpo Stories
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...