Microchip Technology Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2013. The company's consolidated net sales for the third quarter of fiscal 2014 were $482.4 million, down 2.1% sequentially from net sales of $492.7 million in the immediately preceding quarter, and up 15.9% from net sales of $416.0 million in the prior year's third fiscal quarter. Consolidated GAAP net income for the third quarter of fiscal 2014 was $105.4 million, or 48 cents per diluted share, up from a GAAP net income of $99.8 million, or 46 cents per diluted share, in the immediately preceding quarter, and up from GAAP net income of $10.2 million, or 5 cents per diluted share, in the prior year's third fiscal quarter. Consolidated non-GAAP net income for the third quarter of fiscal 2014 was $132.9 million, or 61 cents per diluted share, down 2.6% from non-GAAP net income of $136.4 million, or 63 cents per diluted share, in the immediately preceding quarter, and up 57.2% from non-GAAP net income of $84.5 million, or 41 cents per diluted share, in the prior year's third fiscal quarter. For the quarter, the company reported operating income was $116,918,000 against $17,413,000 for the same period last year. Income before income taxes was $112,588,000 against $9,692,000 for the same period last year. Non-GAAP operating income was $153,787,000 against $105,646,000 for the same period last year.

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.