Microchip Technology, a provider of microcontroller, mixed signal, analog and flash-IP solutions reported that its third quarter Fiscal 2017 (period ending December 31, 2016) achieved non-GAAP net sales of US$881.2 million, up 59.6% from the same quarter one year earlier. Non-GAAP net income was US$246.5 million, up 78.1% on year.
Company CEO Steve Sanghi commented that the quarterly results were extremely strong, with the non-GAAP net sales, gross margin percentage, operating profit percentage and diluted earnings per share all exceeded the high end of our updated guidance provided on November 29, 2016.
Microchip is the process of integrating its acquisition of Atmel into its business operation and Sangi indicated that the company's "go live" strategy of integrating the Atmel unit starting on January 1, 2017 had several customers pushing up orders and requesting early shipment of products originally scheduled for delivery in the early part of January, helping push sales for the third quarter.
However, Sanghi also noted that consolidation in the semiconductor industry is making it a bit more difficult for customers to play suppliers off of each other in order to get better pricing.
During the quarter, Microchip also launched its first Sigfox FCC-certified long-range RF transceiver and connectivity development kits for IoT applications. The company believes that the industrial market is where the true strength of IoT lies and that a lot of investments will be required for IoT infrastructure, and that is where the company's designs best fit.
