Microchip Technology Inc., supplier of microcontroller, analog, and Flash-IP solutions to the appliance and other industries, reported record net sales for technology licensing and record net sales of 32-bit microcontrollers in its third quarter ending Dec, 31, 2010.
Microchip reported in the third quarter::
gross margin of 59.8%
operating income of 35.6%
net income from continuing operations of $113.8 million and 30.9% of sales
EPS from continuing operations of 58 cents per diluted share. The First Call published estimate was 57 cents for non-GAAP EPS.
record net sales for technology licensing division of $19.1 million
record net sales of 32-bit microcontrollers
development tool shipments of 40,303
Consolidated net sales for the third quarter of fiscal 2011 were $367.8 million, down 3.8% sequentially from net sales of $382.3 million in the immediately preceding quarter, and up 47.1% from net sales of $250.1 million in the prior year’s third quarter.
“Microchip’s performance in the December 2010 quarter exceeded our expectations. Net sales, gross margins, operating income and earnings per share were better than the mid-point of our guidance provided on November 30, 2010,” said Steve Sanghi, president and CEO. “The gross margin upside was driven by ongoing cost reductions in our manufacturing processes, a favorable product mix and continued improvements in the product lines we acquired from SST. Operating expenses continue to be well managed and came in at the mid-point of our guidance at 24.1% of sales on a non-GAAP basis in the December quarter.”
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