MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share amounts)

(Unaudited)

Three months ended

Twelve months ended

March 31,

March 31,

2016

2015

2016

2015

Net sales

$

557,647

$

543,207

$

2,173,334

$

2,147,036

Cost of sales

254,868

229,575

967,870

917,472

Gross profit

302,779

313,632

1,205,464

1,229,564

Research and development

95,638

87,662

372,596

349,543

Selling, general and administrative

78,293

67,778

301,670

274,815

Amortization of acquired intangible assets

48,132

47,087

174,896

176,746

Special charges, net

770

758

3,957

2,840

222,833

203,285

853,119

803,944

Operating income

79,946

110,347

352,345

425,620

Losses on equity method investments

(56)

(188)

(345)

(317)

Other expense, net

(22,277)

(48,138)

(70,707)

(79,396)

Income before income taxes

57,613

62,021

281,293

345,907

Income tax benefit

(9,742)

(36,559)

(42,632)

(19,418)

Net income

67,355

98,580

323,925

365,325

Less: Net loss attributable to noncontrolling interests

—

822

207

3,684

Net income attributable to Microchip Technology

$

67,355

$

99,402

$

324,132

$

369,009

Basic net income per common share attributable to Microchip Technology stockholders

$

0.33

$

0.49

$

1.59

$

1.84

Diluted net income per common share attributable to Microchip Technology stockholders

$

0.31

$

0.45

$

1.49

$

1.65

Basic common shares outstanding

203,736

201,730

203,384

200,937

Diluted common shares outstanding

217,711

220,947

217,388

223,561