Microchip Technology Announces Record Net Sales and Earnings for First Quarter of Fiscal Year 2018
[ Back ]   [ More News ]   [ Home ]
Microchip Technology Announces Record Net Sales and Earnings for First Quarter of Fiscal Year 2018

CHANDLER, Ariz., Aug. 03, 2017 (GLOBE NEWSWIRE) -- (NASDAQ:MCHP) - Microchip Technology Incorporated, a leading provider of microcontroller, mixed signal, analog and Flash-IP solutions, today reported results for the three months ended June 30, 2017 as summarized in the following table:

(in millions, except per share amounts and percentages)Three Months Ended June 30, 2017
 GAAP% of
Net
Sales
Non-GAAP1% of
Net
Sales
Net Sales$972.1  $972.1  
Gross Margin$584.4 60.1% $587.2 60.4% 
Operating Income$221.6 22.8% $364.3 37.5% 
Other Expense$(55.4)  $(14.7)  
Income Tax (Benefit) Provision$(4.4)  $30.5  
Net Income$170.6 17.5% $319.1 32.8% 
Earnings per Diluted Share70 cents $1.31  

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

GAAP net sales for the first quarter of fiscal 2018 were $972.1 million, up 21.6% from GAAP net sales of $799.4 million in the prior year's first fiscal quarter.  GAAP net income from continuing operations for the first quarter of fiscal 2018 was $170.6 million, or 70 cents per diluted share, up from GAAP net loss from continuing operations of $(109.2) million, or (51) cents per diluted share, in the prior year's first fiscal quarter.  The prior year's GAAP net income results were significantly adversely impacted by purchase accounting adjustments associated with our Atmel acquisition.

Non-GAAP net sales for the first quarter of fiscal 2018 were $972.1 million, up 15.2% from non-GAAP net sales of $844.0 million in the prior year's first fiscal quarter.  Non-GAAP net income from continuing operations for the first quarter of fiscal 2018 was $319.1 million, or $1.31 per diluted share, up 64.5% from non-GAAP net income of $194.0 million, or 84 cents per diluted share, in the prior year's first fiscal quarter.  For the first quarters of fiscal 2018 and fiscal 2017, our non-GAAP results exclude the effect of discontinued operations, share-based compensation, expenses related to our acquisition activities (including intangible asset amortization, inventory valuation costs, severance costs, and legal and other general and administrative expenses associated with acquisitions), preclusion of revenue recognition under GAAP for inventory in the distribution channel on the acquisition dates of our acquisitions, revenue recognition changes related to Atmel and Micrel distributors resulting from changes to business practices with those distributors, a loss on the settlement of our convertible debentures, non-cash interest expense on our convertible debentures, a gain on an equity method investment, the related income tax implications of these items, tax adjustments in accordance with ASC 740-270 and non-recurring tax events.  Our non-GAAP results for the three month periods ended June 30, 2017 and June 30, 2016 reflect an adjustment for a manufacturing excursion issue with one of our suppliers.  A reconciliation of our non-GAAP and GAAP results is included in this press release.

Microchip announced today that its Board of Directors has declared a record quarterly cash dividend on its common stock of 36.2 cents per share.  The quarterly dividend is payable on September 5, 2017 to stockholders of record on August 21, 2017.

"Our June quarter financial results were extremely strong and represent an acceleration of our organic growth with our Microchip 2.0 initiative," said Steve Sanghi, Chief Executive Officer.  "Microchip 2.0 combines the product, technology, system and employee strength of Microchip and its previous acquisitions and allows us to provide total system solutions to our customers by selling multiple products into the circuit boards that drive their end applications."

Mr. Sanghi added, "Our net sales were at record levels and well above the high end of our revised guidance.  Our non-GAAP net sales for the June quarter were up 15.2% from the June quarter of a year ago.  It is noteworthy that our year-over-year non-GAAP net sales comparison was not impacted by acquisitions since Atmel's full quarter revenue results were included in our June 2016 quarter net sales.  GAAP net sales for the June 2017 quarter were up 21.6% from the June quarter of a year ago.  Our gross margin percentage and operating profit percentage each exceeded the high end of our guidance on both a GAAP and non-GAAP basis and our earnings per share exceeded the high end of our revised guidance on both a GAAP and non-GAAP basis.  Our non-GAAP gross margin crossed the 60% milestone and non-GAAP operating profit exceeded 37% for the first time.  Non-GAAP earnings per share were up 56% from the June quarter of a year ago due to improving sales, gross margin percentage, operating expense leverage and successful execution of our core business as well as accretion from our acquisitions."

"Our Microcontroller businesses performed very strongly in the June quarter with revenue being up 9.5% sequentially compared to the March quarter, setting a new record in the process," said Ganesh Moorthy, President and Chief Operating Officer.  "We continue to see customers using microcontrollers that originated from Atmel’s heritage express confidence in Microchip’s stewardship of these product families.  As a result we are seeing more designs that are in the pipeline going to production and ramping in volume.  We are also seeing continued growth in our design-in funnel which we expect will drive future growth as these designs progress into production over time."

Mr. Moorthy added, "Our analog product revenue was up 3.7% sequentially in the June quarter compared to the March quarter, and also set a new record in the process.  Our transformation to Microchip 2.0 with a more powerful Total System Solution approach is enabling us to successfully find more opportunities to attach Microchip’s vast portfolio of analog products to Atmel microcontrollers and microprocessors at multiple customers and applications.  This effort should contribute to further revenue over time as these new design wins go to production."

Eric Bjornholt, Microchip's Chief Financial Officer, said, "Cash flow from operations in the June quarter was a record $345 million.  As of June 30, 2017, the consolidated cash and total investment position on our balance sheet was $1.65 billion."

Mr. Bjornholt added, "Our inventory at June 30, 2017 was at 100 days and was the lowest in 7 years.  Our distributor inventory at 31 days was also on the low end of our normal range.  Despite our recent manufacturing ramp, we have not been able to grow our inventories since all of the additional output is getting shipped for revenue.  We are projecting Microchip’s inventory at September 30, 2017 to be between 99 and 101 days, which is essentially flat to the June quarter levels."

Commenting on the business environment, Mr. Sanghi added, "We are continuing to see a very strong business environment for our products worldwide and have a number of company specific demand drivers. Our bookings rate in the June quarter was extremely strong.  We are continuing to add capacity in our internal fabs, assembly and test plants, foundries and subcontractors.  Our lead times are still long, but with the increased output from our recent efforts, we believe we have managed to stabilize lead times to create a soft landing without triggering over ordering in our customer base."

Mr. Sanghi concluded, "We expect total net sales to be up approximately 3% sequentially which would represent 14.6% growth on a non-GAAP basis year-over-year and 14.9% growth on a GAAP basis year-over-year."

Microchip's Highlights for the Quarter Ended June 30, 2017:

Second Quarter Fiscal Year 2018 Outlook:

The following statements are based on current expectations.  These statements are forward-looking, and actual results may differ materially.  The table below provides our guidance on both a GAAP and non-GAAP basis for the September 30, 2017 quarter:

 Microchip Consolidated Guidance
 GAAPNon-GAAP
Adjustments
Non-GAAP1
    
Net Sales$1,001.3 million $1,001.3 million
Gross Margin260.15% to 60.4%$3.5 million60.5% to 60.75%
Operating Expenses36.9% to 37.4%$144.2 million22.5% to 23.0%
Operating Income22.75% to 23.5%$147.7 million37.5% to 38.25%
Other Expense$44.2 million$27.3 million$16.9 million
Income Tax Expense0% to 2%$29.5 to $30.2 million8.25% to 9.25%
Net Income$179.9 to $191.1 million$144.8 to $145.5 million$325.4 to $335.9 million
Diluted Common Shares 
Outstanding3
Approximately 244 to
244.7 million shares
 Approximately 244 to
244.7 million shares
Earnings per Diluted Share3
74 to 78 centsAbout 59 cents$1.33 to $1.37

1 See the "Use of Non-GAAP Financial Measures" section of this release.
2 See Footnote 2 under the "Use of Non-GAAP Financial Measures" section of this release.
3 Earnings per share has been calculated based on the diluted shares outstanding of Microchip on a consolidated basis.

Use of Non-GAAP Financial Measures:  Our non-GAAP adjustments, where applicable, include the effect of discontinued operations, share-based compensation, expenses related to our acquisition activities (including intangible asset amortization, inventory valuation costs, severance costs, and legal and other general and administrative expenses associated with acquisitions), preclusion of revenue recognition under GAAP for inventory in the distribution channel on the acquisition dates of our acquisitions, revenue recognition changes related to Atmel and Micrel distributors resulting from changes to business practices with those distributors, a loss on the settlement of our convertible debentures, non-cash interest expense on our convertible debentures, a gain on an equity method investment, the related income tax implications of these items, tax adjustments in accordance with ASC 740-270 and non-recurring tax events.  Our non-GAAP results for the three month periods ended June 30, 2017 and June 30, 2016 reflect an adjustment for a manufacturing excursion issue with one of our suppliers.  We believe that our disclosure of non-GAAP net sales provides investors with useful information regarding the actual end market demand for our products.

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.  Our other non-GAAP adjustments are either non-cash expenses, unusual or infrequent items or other expenses related to transactions.  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 rate, non-GAAP net income from continuing operations, and non-GAAP diluted earnings per share from continuing operations which exclude the items noted above, 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 our business.  Specifically, we do not consider such items when developing and monitoring our budgets and spending.  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  Generally, gross margin fluctuates over time, driven primarily by the mix of microcontrollers, mixed-signal products, analog products and memory products sold and licensing revenue; variances in manufacturing yields; fixed cost absorption; wafer fab loading levels; costs of wafers from foundries; 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.

3  Diluted Common Shares Outstanding can vary for, among other things, the trading price of our common stock, the 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 repurchases or issuances of shares of our common stock.  The diluted common shares outstanding presented in the guidance table above assumes an average Microchip stock price in the September 2017 quarter between $81and $84 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).

MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share amounts)
(unaudited) 
   
  Three Months ended
  June 30,
  2017 2016
     
Net sales
 $972,141  $799,411 
Cost of sales 387,702  450,921 
Gross profit 584,439  348,490 
     
Research and development 130,480  147,883 
Selling, general and administrative 114,272  157,505 
Amortization of acquired intangible assets 120,845  80,171 
Special (income) charges and other, net (2,756) 22,035 
Operating expenses 362,841  407,594 
     
Operating income (loss) 221,598  (59,104)
Losses on equity method investments (55) (56)
Other expense, net (55,338) (31,587)
     
Income (loss) before income taxes 166,205  (90,747)
Income tax (benefit) provision (4,382) 18,478 
Net income from continuing operations 170,587  (109,225)
Discontinued operations:    
Loss from discontinued operations   (5,473)
Income tax benefit   (1,335)
Net loss from discontinued operations   (4,138)
     
Net income (loss) $170,587  $(113,363)
     
Basic net income (loss) per common share    
Net income (loss) from continuing operations $0.74  $(0.51)
Net loss from discontinued operations   (0.02)
Net income (loss) $0.74  $(0.53)
Diluted net income (loss) per common share    
Net income (loss) from continuing operations $0.70  $(0.51)
Net loss from discontinued operations   (0.02)
Net income (loss) $0.70  $(0.53)
     
Basic common shares outstanding 229,429  214,345 
Diluted common shares outstanding 242,902  214,345 
       


MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
    
ASSETS
    
 June 30, March 31,
 2017 2017
 (Unaudited)  
Cash and short-term investments$1,230,246  $1,302,772 
Accounts receivable, net528,954  478,373 
Inventories426,843  417,202 
Assets held for sale  6,459 
Other current assets112,719  100,234 
Total current assets2,298,762  2,305,040 
    
Property, plant and equipment, net693,995  683,338 
Long-term investments420,458  107,457 
Other assets4,474,676  4,591,046 
Total assets$7,887,891  $7,686,881 
    
    
LIABILITIES AND STOCKHOLDERS' EQUITY
    
Accounts payable and accrued liabilities$416,390  $361,683 
Deferred income on shipments to distributors308,797  292,815 
Current portion of long-term debt11,256  49,952 
Total current liabilities736,443  704,450 
    
Long-term debt2,983,908  2,900,524 
Long-term income tax payable187,255  184,945 
Long-term deferred tax liability347,216  409,045 
Other long-term liabilities220,515  217,206 
    
Stockholders' equity3,412,554  3,270,711 
Total liabilities and stockholders' equity$7,887,891  $7,686,881 
        

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
 June 30,
 2017 2016
Net sales, as reported$972,141  $799,411 
Distributor revenue recognition adjustment  44,587 
Non-GAAP net sales$972,141  $843,998 
        

RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT

 Three Months ended
 June 30,
 2017 2016
Gross profit, as reported$584,439  $348,490 
Distributor revenue recognition adjustment, net of product cost  23,416 
Share-based compensation expense3,394  7,897 
Manufacturing excursion(660) 800 
Acquisition-related restructuring and acquired inventory valuation costs  90,488 
Non-GAAP gross profit$587,173  $471,091 
Non-GAAP gross profit percentage60.4% 55.8%
      

RECONCILIATION OF GAAP RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES

 Three Months ended
 June 30,
 2017 2016
Research and development expenses, as reported$130,480  $147,883 
Share-based compensation expense(10,289) (17,517)
Acquisition-related and other costs  1,201 
Non-GAAP research and development expenses$120,191  $131,567 
Non-GAAP research and development expenses as a percentage of net sales12.4% 15.6%
      

RECONCILIATION OF GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSES TO NON-GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 Three Months ended
 June 30,
 2017 2016
Selling, general and administrative expenses, as reported$114,272  $157,505 
Share-based compensation expense(8,725) (34,165)
Acquisition-related and other costs(2,860) (14,946)
Non-GAAP selling, general and administrative expenses$102,687  $108,394 
Non-GAAP selling, general and administrative expenses as a percentage of net sales10.6% 12.8%
      

RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

 Three Months ended
 June 30,
 2017 2016
Operating expenses, as reported$362,841  $407,594 
Share-based compensation expense(19,014) (51,682)
Acquisition-related and other costs(2,860) (13,745)
Amortization of acquired intangible assets(120,845) (80,171)
Special (income) charges and other, net2,756  (22,035)
Non-GAAP operating expenses$222,878  $239,961 
Non-GAAP operating expenses as a percentage of net sales22.9% 28.4%
      

RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME

 Three Months ended
 June 30,
 2017 2016
Operating income (loss), as reported$221,598  $(59,104)
Distributor revenue recognition adjustment  23,416 
Share-based compensation expense22,408  59,579 
Manufacturing excursion(660) 800 
Acquisition-related restructuring, acquired inventory valuation and other costs2,860  104,233 
Amortization of acquired intangible assets120,845  80,171 
Special (income) charges and other, net(2,756) 22,035 
Non-GAAP operating income$364,295  $231,130 
Non-GAAP operating income as a percentage of net sales37.5% 27.4%
      

RECONCILIATION OF GAAP OTHER EXPENSE, NET TO NON-GAAP OTHER EXPENSE, NET

 Three Months ended
 June 30,
 2017 2016
Other expense, net, as reported$(55,338) $(31,587)
Loss on settlement of convertible debt13,826   
Non-cash other expense, net26,836  12,537 
Gain on equity method investment  (468)
Non-GAAP other expense, net$(14,676) $(19,518)
Non-GAAP other expense, net, as a percentage of net sales(1.5)% (2.3)%
      

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

 Three Months ended
 June 30,
 2017 2016
Income tax (benefit) provision, as reported$(4,382) $18,478 
Income tax rate, as reported(2.6)% (20.4)%
Distributor revenue recognition adjustment  3,566 
Share-based compensation expense7,428  20,888 
Manufacturing excursion(241) 295 
Acquisition-related restructuring, acquired inventory valuation costs, intangible asset amortization and other costs10,894  11,769 
Special (income) charges and other, net(1,207) 6,470 
Loss on settlement of convertible debt5,053   
Non-cash other expense, net9,809  4,620 
Gain on equity method investment  (172)
Non-recurring tax events5,633  6,877 
Tax adjustment in accordance with ASC 740-270
(2,476) (55,215)
Non-GAAP income tax provision$30,511  $17,576 
Non-GAAP income tax rate8.7% 8.3%
      

RECONCILIATION OF GAAP NET INCOME (LOSS) FROM CONTINUING OPERATIONS AND GAAP DILUTED NET INCOME (LOSS) PER COMMON SHARE FROM CONTINUING OPERATIONS TO NON-GAAP NET INCOME FROM CONTINUING OPERATIONS AND NON-GAAP DILUTED NET INCOME PER COMMON SHARE FROM CONTINUING OPERATIONS

 Three Months Ended
 June 30,
 2017 2016
Net income (loss) from continuing operations, as reported$170,587  $(109,225)
Distributor revenue recognition adjustment, net of tax effect  19,850 
Share-based compensation expense, net of tax effect14,980  38,691 
Manufacturing excursion, net of tax effect(419) 505 
Acquisition-related restructuring, acquired inventory valuation costs, intangible asset amortization and other costs, net of tax effect112,811  172,635 
Special (income) charges and other, net of tax effect(1,549) 15,565 
Loss on settlement of convertible debt, net of tax effect8,773   
Non-cash other expense, net of tax effect17,027  7,917 
Gain on equity method investment, net of tax effect  (296)
Non-recurring tax events(5,633) (6,877)
Tax adjustment in accordance with ASC 740-2702,476  55,215 
Non-GAAP net income from continuing operations$319,053  $193,980 
Non-GAAP net income from continuing operations as a percentage of net sales32.8% 23.0%
GAAP net income (loss) from continuing operations as a percentage of net sales17.5% (13.7) %
Diluted net income (loss) per common share from continuing operations, as reported$0.70  $(0.51)
Non-GAAP diluted net income per common share from continuing operations$1.31  $0.84 
Diluted common shares outstanding, as reported242,902  214,345 
Diluted common shares outstanding Non-GAAP242,902  230,670 
      

Microchip will host a conference call today, August 3, 2017 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 August 17, 2017.

A telephonic replay of the conference call will be available at approximately 8:00 p.m. (Eastern Time) on August 3, 2017 and will remain available until 8:00 p.m. (Eastern Time) on August 17, 2017.  Interested parties may listen to the replay by dialing 719-457-0820 and entering access code 8277779.

Cautionary Statement:

The statements in this release relating to acceleration of our organic growth with our Microchip 2.0 initiative, improving sales, gross margin percentage, operating expense leverage and successful execution of our core business and accretion from our acquisitions, continuing to see customers using Atmel microcontrollers express confidence in Microchip's stewardship of Atmel's heritage product families, seeing more designs going to production and ramping in volume, seeing continued growth in our design-in funnel and expecting that will drive future growth, successfully finding more opportunities to attach Microchip's analog products to Atmel microcontrollers and microprocessors, these efforts contributing to further revenue over time as these new design wins go to production, projecting Microchip's inventory at September 30, 2017 to be between 99 and 101 days, continuing to see a very strong business environment for our products worldwide, continuing to add capacity in our internal fabs, assembly and test plants, foundries and subcontractors, managing to stabilize long lead times without triggering over ordering in our customer base, expecting net sales in the September 2017 quarter to be up approximately 3% sequentially, that our MOST technology is still a leading standard for automotive infotainment, our second quarter fiscal 2018 GAAP and Non-GAAP guidance including net sales, gross margin, operating expenses, operating income, other expense, income tax expense/(benefit), net income, diluted common shares outstanding, earnings per diluted share, inventory days, capital expenditures for the September 2017 quarter and for all of fiscal 2018, continuing to invest to support the growth of our production capabilities for fast growing new products and technologies, that Non-GAAP results provide investors with useful information regarding the actual end market demand for our products, and assumed average stock price in the September 2017 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: any economic uncertainty due to monetary policy, political or other issues in the U.S. or internationally, any unexpected fluctuations or weakness in the U.S. and global economies (including China), changes in demand or market acceptance of our products and the products of our customers; foreign currency effects on our business; 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 and expand 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; our ability to successfully integrate the operations and employees, retain key employees and customers and otherwise realize the expected synergies and benefits of our Atmel acquisition; our ability to continue to realize the expected benefits of our other acquisitions; the impact of any other significant acquisitions that we may make; our ability to obtain a sufficient supply of wafers from third party wafer foundries and the cost of such wafers, the costs and outcome of any current or future tax audit or any litigation or other matters involving intellectual property, customers, or other issues; our actual average stock price in the September 2017 quarter and the impact such price will have on our share count; fluctuations in our stock price and trading volume which could impact the number of shares we acquire under our share repurchase program and the timing of such repurchases; 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 August 3, 2017 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, the Microchip logo, MOST, maXTouch  and PIC are registered trademarks of Microchip Technology Inc. in the USA and other countries. Smartbit is a trademark of Microchip Technology Inc. in the USA and other countries. All other trademarks mentioned herein are the property of their respective companies.

INVESTOR RELATIONS CONTACT:
J. Eric Bjornholt -- CFO (480) 792-7804

Primary Logo