Microchip announces financial results for fiscal year 2015

GAAP net sales for the fourth quarter of fiscal 2015 were $543.2m, up 10.1% from GAAP net sales of $493.4m in the prior year's fourth fiscal quarter. GAAP net income for the fourth quarter of fiscal 2015 was $99.4m, or 45 cents per diluted share, down 10.8% from GAAP net income of $111.5m, or 50 cents per diluted share, in the prior year's fourth fiscal quarter.

Non-GAAP net sales for the fourth quarter of fiscal 2015 were $547.2m, up 10.9% from non-GAAP net sales of $493.4m in the prior year's fourth fiscal quarter. Non-GAAP net income for the fourth quarter of fiscal 2015 was $148.8m, or 68 cents per diluted share, up 5.3% from non-GAAP net income of $141.3m, or 64 cents per diluted share, in the prior year's fourth fiscal quarter. For the fourth quarters of fiscal 2015 and fiscal 2014, non-GAAP results exclude the effect of share-based compensation, expenses related to our acquisition activities, revenue recognition changes related to ISSC's distribution relationships, a loss on the retirement of convertible debentures, gains from equity securities, non-cash interest expense on our convertible debentures and non-recurring tax events. A reconciliation of our non-GAAP and GAAP results is included in this press release.

GAAP net sales for the fiscal year were $2.147bn, an increase of 11.2% from net sales of $1.931bn in the prior fiscal year. On a GAAP basis, consolidated net income for the fiscal year was $369.0m, or $1.65 per diluted share, a decrease of 6.6% from net income of $395.3m, or $1.82 per diluted share in the prior fiscal year.

Non-GAAP net sales for the fiscal year were $2.161bn, an increase of 11.9% from net sales of $1.931bn in the prior fiscal year. On a non-GAAP basis, net income for the fiscal year was $593.9m, or $2.66 per diluted share, an increase of 11.9% from net income of $531.0m, or $2.45 per diluted share, in the prior fiscal year.

Microchip announced that its Board of Directors declared a quarterly cash dividend on its common stock of 35.75 cents per share. The quarterly dividend is payable on 4^th June 2015 to stockholders of record on 21^st May 2015.

"We are very pleased with our execution in the March quarter," said Steve Sanghi, President and CEO, Microchip Technology. "We achieved record net sales and our non-GAAP earnings per share in the March quarter were 68 cents per diluted share, at the high end of our guidance which was upwardly revised on 11^th February 2015 to reflect our refinancing activities."

Sanghi added: "Fiscal year 2015 was another record year as we achieved non-GAAP net sales of $2.161bn, up 11.9% from fiscal year 2014. In fiscal year 2015 our MCU and analog product lines both set new revenue records. The March quarter was our 98th consecutive quarter of profitability, a track record that our employees and stockholders should be extremely proud of."

"Our MCU revenue was up 8.4% in the March quarter from the year ago quarter," said Ganesh Moorthy, COO, Microchip Technology. "For fiscal year 2015, our MCU business was up 11.4% over fiscal year 2014, setting a revenue record at over $1.4bn. Additionally, for fiscal year 2015, each of our three MCU segments, 8-bit, 16-bit and 32-bit set revenue records and gained significant market share as reported in the 2014 Gartner Dataquest rankings, with our 8-bit business also regaining the number one position in revenue."

Moorthy added: "For fiscal year 2015, our analog business was also up strongly at 17.6% over fiscal year 2015, setting a revenue record and for the first time crossing the half billion dollar mark."

Eric Bjornholt, CFO, Microchip Technology, said: "Our cash generation in the March quarter excluding the purchase of additional shares of ISSC, our dividend payment, and changes in borrowing levels was $155.5m. As of 31^st March 2015, our consolidated cash and total investment position was approximately $2.34bn. The dividend that we announced today marks the 45th occasion that we have increased our dividend payment, and cumulative dividends paid are now $2.52bn."

Sanghi added: "We have evaluated the current global economic environment, our backlog position and customer designs that are coming to production and expect our revenue to be between $547m and $564m in the June quarter."