Microchip Technology Incorporated, a leading provider of microcontroller, mixed signal, analog and Flash-IP solutions, today reported results for the three months ended September 30.

GAAP net sales for the second quarter of fiscal 2016 were $541.4 million, down 0.9% from GAAP net sales of $546.2 million in the prior year’s second fiscal quarter.  GAAP net income for the second quarter of fiscal 2016 was $64.9 million, or 30 cents per diluted share, down 30.7% from GAAP net income of $93.6 million, or 42 cents per diluted share, in the prior year’s second fiscal quarter. 

Non-GAAP net sales for the second quarter of fiscal 2016 were $559.4 million, up 2.4% from non-GAAP net sales of $546.2 million in the prior year’s second fiscal quarter.  Non-GAAP net income for the second quarter of fiscal 2016 was $142.9 million, or 66 cents per diluted share, down 4.9% from non-GAAP net income of $150.2 million, or 67 cents per diluted share, in the prior year’s second fiscal quarter.  For the second quarters of fiscal 2016 and fiscal 2015, our non-GAAP results exclude the effect of 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), GAAP non-recognition of revenue for inventory in the distribution channel at the acquisition dates for our acquisitions, non-cash interest expense on our convertible debentures, the related income tax implications of these items and non-recurring tax events.  A reconciliation of our non-GAAP and GAAP results is included in this press release.

Microchip announced today that its Board of Directors declared a quarterly cash dividend on its common stock of 35.85 cents per share.  The quarterly dividend is payable on December 4, 2015 to stockholders of record on November 20, 2015. 

“Our September quarter results were better than our upwardly revised guidance from September 8, 2015.  The quarterly results in revenue, gross margin percentage, operating expense percentage and operating profit percentage were all better than the midpoint of such guidance,” said Steve Sanghi, President and CEO.  “Overall we executed the quarter extremely well amidst very difficult industry conditions, and ended the quarter with an all-time record in non-GAAP net sales.  We also achieved the top end of our upwardly revised non-GAAP earnings per share guidance.”

Mr. Sanghi added, “The September quarter was also our 100th consecutive profitable quarter.  I want to thank all Microchip employees for their dedication and contribution in this remarkable achievement of 100 consecutive profitable quarters, an achievement we believe is unmatched in the semiconductor industry.” 

“Our microcontroller revenue was down 4% in the September quarter as compared to the June quarter.  We experienced the same broad-based weakness that has been reported by many others in our industry.  In aggregate over the last four rolling quarters, our microcontroller business was up 2.7% over the prior four rolling quarters,” said Ganesh Moorthy, Chief Operating Officer.  “We are continuing to deliver innovative new 8-bit, 16-bit and 32-bit microcontrollers that we believe will enable us to grow faster than the market and gain further market share.”