Microchip sees microcontroller business speeding up
Microchip Technology has reported net sales for the third quarter of fiscal 2014 of $482.4m.
This was a 15.9% increase on the same quarter a year ago, but down 2.1% sequentially from Q2.
“Looking at the December 2013 quarter compared to the year ago quarter, net sales were up 15.9% and reflected our continued market share gains in our strategic product lines,” said Steve Sanghi, Microchip president and CEO.
Consolidated non-GAAP net income for Q3 was $132.9m down 2.6% from Q2 and up 57.2% from Q3 2013.
According to Sanghi, the company entered the March quarter with a stronger backlog position than it had entering the December quarter.
“The March quarter is adversely impacted by the Chinese New Year in Asia but is typically quite strong in Europe. Taking the global economic picture and these factors into consideration we expect Microchip’s total net sales in the March quarter to be flat to up 3% sequentially,” said Sanghi.
Microchip’s controllers continue to perform well.
“Microcontroller net sales were up 17.8% in the December quarter compared to the year ago quarter,” said Ganesh Moorthy, Microchip chief operating officer. “16-bit and 32-bit microcontroller net sales were up 27.9% and 29.5% respectively, in the December quarter compared to the year ago quarter.
During the quarter Microchip introduced the PIC32MZ family of performance microcontrollers along with the MPLAB Harmony integrated software platform, integrating both internal and third party middleware, drivers, peripheral libraries and real time operating systems.
“Both of these introductions have received broad industry accolades and customer acceptance which bodes well for Microchip’s future growth in this market,” said Sanghi.