Microchip Technology Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2013; Provides Earnings Guidance for the Fourth Quarter and Capital Expenditure Guidance for the Year Ending March 31, 2014
For the nine months, the company reported net sales of $1,437,833,000 against $1,151,479,000 for the same period last year. Operating income was $332,827,000 against $121,840,000 for the same period last year. Income before income taxes was $314,130,000 against $102,675,000 for the same period last year. Net income was $283,786,000 or $1.31 per diluted share against $67,699,000 or $0.33 per diluted share for the same period last year. Non-GAAP net sales were $1,437,833,000 against $1,176,227,000 for the same period last year. Non-GAAP operating income was $451,734,000 against $339,964,000 for the same period last year. Non-GAAP net income was $389,662,000 or $1.81 per diluted share against $279,163,000 or $1.37 per diluted share for the same period last year.
For the fourth quarter ending March 31, 2014, the company expects net cash generation of approximately $135 million to $155 million prior to the dividend payment and its acquisition related activities. The company expects GAAP and non-GAAP net sales of $482.4 million to $496.8 million. GAAP gross margin is expected to be 58.55% to 58.75% and non-GAAP gross margin is expected to be 59.0% to 59.2%. GAAP net income is expected to be $97.1 million to $104.0 million and non-GAAP net income is expected to be $130.9 million to $139.2 million. GAAP earnings per diluted share are expected to be 43 cents to 47 cents and non-GAAP earnings per diluted share are expected to be 59 cents to 63 cents. Capital expenditures for the quarter ending March 31, 2014 are expected to be approximately $30 million.
The company's capital expenditures for all of fiscal year 2014 are anticipated to be approximately $115 million.