Microchip Technology Incorporated (MCHP) - NASDAQ
  • Wed, Feb. 3, 6:03 PM
    • Microchip (NASDAQ:MCHP) is guiding for FQ4 revenue of $552M-$568.6M (flat to up 3% Q/Q) and EPS of $0.65-$0.69 vs. a consensus of $567.1M and $0.66. Sales expectations were low on account of a chip inventory correction and soft guidance from other chip developers.
    • Along with its results/guidance, Microchip announces it has appointed Ganesh Moorthy, the company's COO since 2009, its President.
    • Remarks from CEO Steve Sanghi suggest Moorthy could get a bigger promotion in the future: "I will need more bandwidth to manage expanded operations worldwide with many more sites. Ganesh and I will jointly manage the worldwide consolidated enterprise of Microchip and Atmel ... Promoting a President from within is also a tribute to our strong succession planning and executive development program under which Microchip has not hired a Vice President level executive from outside since 2001."
    • Sanghi on Microchip's guidance: "We believe that our business has stabilized and that the majority of the inventory correction is behind us. The March quarter will be impacted negatively by the Chinese New Year holidays in Asia but it is also the strongest quarter of the year for Microchip in Europe."
    • MCHP +0.8% after hours to $42.65.
    • Microchip's FQ3 results, earnings release
    | Wed, Feb. 3, 6:03 PM
  • Wed, Jan. 13, 9:19 AM
    • Atmel has notified Dialog Semi (OTC:DLGNF), with whom it agreed to a cash/stock deal in September, it intends to terminate its merger agreement with the company. However, Atmel's board "will consider in good faith any changes to the Dialog merger agreement or other arrangements that Dialog may offer in writing and would be legally binding upon Dialog by 5:00 PM California time on Tuesday, January 19, 2016." Atmel will pay a $137.3M termination fee if the Dialog deal is terminated.
    • ATML +4.7% premarket to $8.04.
    • Prior Atmel M&A coverage
    | Wed, Jan. 13, 9:19 AM | 4 Comments
  • Wed, Jan. 6, 6:10 PM
    • Bloomberg reports Microchip (NASDAQ:MCHP) is reconsidering its offer to acquire Atmel (NASDAQ:ATML). Atmel has fallen to $8.00 after hours as a result.
    • Reuters reported on Monday Microchip, believed to be the unnamed suitor Atmel has reported receiving a $9/share offer from, planned to submit a binding offer for Atmel by early next week. However, it added Microchip's due diligence process had taken longer than expected due to concerns about weakening business trends facing Atmel.
    • If Microchip backed out, the coast would be clear for Dialog Semi (OTC:DLGNF) to acquire Atmel via the cash/stock deal that was struck in September.
    | Wed, Jan. 6, 6:10 PM
  • Dec. 15, 2015, 3:11 PM
    • Reuters reports Microchip (MCHP +2.4%) is the undisclosed suitor Atmel (ATML -0.7%) reported last Friday it had received a buyout offer from. The suitor is offering Atmel shareholders $9/share in cash, with an option to receive up to $1B of their payout in stock.
    • At the time, Atmel said the offer "would reasonably be expected" to yield a superior proposal to Atmel's cash/stock deal to be acquired by U.K. power management chipmaker Dialog Semi (OTC:DLGNF). Dialog's shares fell 1.1% in Frankfurt today (after initially seeing bigger losses) in response to a Q4 warning.
    • Microchip's shares have added slightly to their Tuesday gains in response to the report, while Atmel's have slightly pared their Dialog-induced losses. Acquiring Atmel, a fellow microcontroller maker, would give Microchip greater scale as it squares off against NXP/Freescale (just merged), Texas Instruments, Reneaas, Infineon, and other rivals.
    | Dec. 15, 2015, 3:11 PM | 2 Comments
  • Oct. 22, 2015, 12:24 PM
    • The Philadelphia Semi Index (SOXX +3%) has risen above $90 for the first time since July on a day the Nasdaq is up 1.5%. Helping out: Texas Instruments (TXN +10.4%) soundly beat Q3 estimates, reported positive growth for its analog and embedded processing (DSP/microcontroller) units in spite of a customer inventory correction, and (with the help of iPhone content gains) provided mostly above-consensus Q4 guidance.
    • Meanwhile, Cypress Semi (up 4.1%) is rallying in spite of posting mixed Q3 results and issuing light Q4 guidance. A new $450M buyback is helping.
    • TI/Cypress microcontroller peers NXP (NXPI +4.2%), Freescale (FSL +3.5%), STMicroelectronics (STM +2.5%), and Microchip (MCHP +2.9%) are among the gainers. As are TI analog/mixed-signal peers ON Semi (ON +5%), Intersil (ISIL +3.2%), IDT (IDTI +3.6%), Monolithic (MPWR +3.3%), and Silicon Labs (SLAB +2.6%).
    • Other notable gainers include InvenSense (INVN +2.6%), Nvidia (NVDA +3.5%), Cavium (CAVM +4.4%), Knowles (KN +3.6%), and Lattice Semi (LSCC +7%).
    • On its earnings call (transcript), TI mentioned automotive chip demand (boosted by growing chip content in various systems) was strong. Industrial sales were roughly flat (better than expected), and personal electronics benefited from "demand from one customer" (likely Apple). Wireless infrastructure fell 30% Y/Y (Chinese weakness), but rose Q/Q.
    • Chip stocks also outperformed yesterday after Western Digital announced it's buying SanDisk, Lam Research announced it's buying KLA-Tencor, and CPU core giant ARM (ARMH +2.7%) beat Q3 revenue estimates (EPS slightly missed) with the help of a 20% Y/Y increase in ARM chip shipments to 3.6B, and stated it expects 2015 revenue to be in-line with market expectations.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Oct. 22, 2015, 12:24 PM
  • Sep. 8, 2015, 3:25 PM
    • The Philadelphia Semi Index (SOXX +3.9%) has risen to its highest levels since mid-August on a day the Nasdaq is posting a 2.3% gain.
    • Likely helping out: Microchip (MCHP +8.4%), still often seen as an industry bellwether (though its commentary accompanying last fall's warning sparked criticism), has adjusted its FQ2 (calendar Q3) revenue and EPS guidance to $545M-$563M ($554M midpoint) and $0.60-$0.66 from a prior $$532M-$569M ($550.5M midpoint) and $0.58-$0.66. The outlook comes after many chipmakers (Microchip included) offered below-consensus calendar Q3 guidance amid an inventory correction, weak PC demand, and slowing Chinese smartphone growth.
    • Microchip's core ops are said to be tracking in-line with prior expectations, and recently-acquired Micrel's above expectations. The 8.6M shares issued in the Micrel deal have been repurchased.
    • Also: Various Taiwanese chipmakers and supply chain firms have reported August sales. Chip packaging/testing firms ASE (ASX +5.9%) and Siliconware (SPIL +4.1%) respectively reported sales were up 5.8% and 5.7% M/M, and up 9.5% and down 4.2% Y/Y.
    • Big gainers include Microchip peers NXP (NXPI +6.8%), Freescale (FSL +5.8%), Silicon Labs (SLAB +4.4%), and Cypress (CY +4.4%). Others include Avago (AVGO +5.8%), Xilinx (XLNX +5.7%), Cavium (CAVM +5.5%), Analog Devices (ADI +6.3%), Synaptics (SYNA +5.4%), Linear (LLTC +4.6%), Cirrus Logic (CRUS +4.7%), IDT (IDTI +4.6%), Sigma Designs (SIGM +4.9%), and chip equipment maker Axcelis (ACLS +8%).
    • SanDisk, ON Semi, and Silicon Motion are benefiting from upgrades/bullish coverage. Apple holds its iPhone event at 1PM ET tomorrow.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Sep. 8, 2015, 3:25 PM | 1 Comment
  • Sep. 8, 2015, 12:10 PM
    • JPMorgan has upgraded SanDisk (SNDK +4.6%) and Microchip (MCHP +7.7%) to Overweight, Baird has upgraded ON Semi (ON +7.7%) to Outperform, and Susquehanna has launched coverage on Silicon Motion (SIMO +4.2%) at Positive. All four names are outperforming on a day the Nasdaq is up 1.8%, and the Philadelphia Semi Index 3.2%.
    • JPMorgan thinks SanDisk has addressed the execution issues that have weighed on enterprise flash sales, and is poised to once more see positive enterprise and client/embedded growth. It forecasts the enterprise SSD market will see a ~20% CAGR over the next few years.
    • Regarding Microchip, JPMorgan believes shipments will soon match end-market consumption, after having come in below consumption the last 3 quarters. It also expects Microchip's microcontroller (MCU) product line to drive above-market growth.
    • Update: Microchip has favorably adjusted its FQ2 guidance today.
    | Sep. 8, 2015, 12:10 PM | 5 Comments
  • Aug. 3, 2015, 6:30 PM
    • In addition to missing FQ1 estimates, Microchip (NASDAQ:MCHP) is guiding for FQ2 revenue of $532M-$569M and EPS of $0.58-$0.66, below a consensus of $575.4M and $0.76.
    • The guidance includes $35M in revenue (likely isn't fully accounted for by consensus) from the Micrel (NASDAQ:MCRL) acquisition, whose closing has been announced in tandem with Microchip's results. Microchip is paying $430M in cash and issuing 8.63M shares (current value of $354M).
    • A weak outlook was partly expected, given the guidance provided by TI, NXP, Atmel, and other microcontroller vendors. CEO Steve Sanghi: "The June quarter started out well, but the negative effects of a very weak economy in China and challenges in Europe, led by a very weak Euro caused us to finish the quarter below our revenue guidance provided on May 7, 2015."
    • Shares have fallen to $41.04 AH.
    • FQ1 results, PR
    | Aug. 3, 2015, 6:30 PM
  • Jul. 22, 2015, 11:11 AM
    • The Philadelphia Semi Index (SOXX -3.2%) has fallen to its lowest levels since February after Apple, ARM, and Linear Technology posted their calendar Q2 reports yesterday afternoon.
    • Apple (down 4.8%) beat estimates, but offered soft guidance and reported slightly below-consensus iPhone sales. ARM (down 3.8%) reported roughly in-line Q2 results and a 26% Y/Y increase in ARM-based chip shipments, while stating it expects 2015 results to be in-line with expectations.
    • Linear (down 7.8%) missed FQ4 estimates and provided weak FQ1 guidance. Notably, the analog/mixed-signal chipmaker added it saw bookings slow "considerably" towards the end of Q2, with industrial and PC demand particularly weak. Bookings have improved in July, but Linear is still "preparing for a difficult [Q3]." The company expresses optimism the downturn will be short.
    • Apple suppliers are seeing big losses (previous). As are Linear peers Texas Instruments (TXN -3.7%), ON Semi (ON -5.1%), Maxim (MXIM -3.5%), IDT (IDTI -6.5%, Apple Watch supplier), InPhi (IPHI -4%), Exar (EXAR -4.2%), and Analog Devices (downgraded by Drexel Hamilton).
    • Other decliners include Micron (MU -4.2%, also an Apple supplier), Synaptics (SYNA -6.4%, ditto), STMicroelectronics (STM -6.2%, downgraded by Citi), Freescale (FSL -4.8%, following merger partner/Apple supplier NXP lower), Microchip (MCHP -4.6%), Cypress (CY -4.3%), Lattice (LSCC -3.9%), and Silicon Motion (SIMO -4.4%).
    • Qualcomm, TI, Cirrus Logic, SanDisk, and Xilinx report this afternoon.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Jul. 22, 2015, 11:11 AM | 3 Comments
  • May 7, 2015, 4:35 PM
    • Along with its FQ4 results, Microchip (NASDAQ:MCHP) announces it's buying analog/mixed-signal chipmaker Micrel (NASDAQ:MCRL) for $14/share, or $744M net of cash. Micrel shareholders can opt to be paid either in cash or stock.
    • The price represents a modest 4% premium to Micrel's Thursday close. Microchip notes the price is 30% above where Micrel traded before activist Starboard Value disclosed a 12% stake last August, thus fueling hopes Micrel will take part in the chip industry's consolidation wave.
    • The deal is expected to close in early calendar Q3. No word yet on expected post-merger cost synergies. Micrel's chips often go into hardware Microchip aims to sell microcontrollers for. Last year, Microchip bought Bluetooth chipmaker ISSC for $294M.
    • Microchip has also announced it's expanding its buyback authorization to 20M from the 2.5M that it previously had remaining. The company's FQ4 diluted share count was 220.9M.
    • FQ1 guidance is for revenue $547M-$564M and EPS of $0.69-$0.73, almost entirely below a consensus of $568.3M and $0.74. Many peers have also provided soft guidance.
    • Microchip is nearly unchanged AH.
    | May 7, 2015, 4:35 PM
  • Apr. 22, 2015, 5:57 PM
    • In addition to missing Q1 estimates, Texas Instruments (NASDAQ:TXN) is guiding for Q2 revenue of $3.12B-$3.38B and EPS of $0.60-$0.70, below a consensus of $3.43B and $0.73.
    • TI has fallen to $54.86 AH. Peers are also off: NXP (NASDAQ:NXPI) is down 2.6% to $100.00, ON Semi (NASDAQ:ONNN) is down 2.8% to $12.02, Linear (NASDAQ:LLTC) is down 2.5% to $46.40, Microchip (NASDAQ:MCHP) is down 1.6% to $48.49, and Maxim (NASDAQ:MXIM) is down 1.6% to $34.45. In addition to TI, Xilinx has provided soft top-line figures. Qualcomm has provided light guidance to go with an FQ2 beat, but hasn't blamed broader demand trends.
    • Aside from a strong dollar (hurting many tech companies), TI blames "continuing weakness in our communications equipment and personal electronics markets, particularly for wireless infrastructure equipment and PCs."
    • Q1 segment performance: Analog revenue +11% Y/Y to $2.04B; op. profit +45% to $721M. Embedded processing +2% to $672M; op. profit +137% to $123M. Other revenue (calculators, DLPs, royalties) -10% to $443M; op. profit -19% to $114M.
    • With TI aggressively trying to keep costs down (have they taken the strategy too far?), GAAP R&D spend fell by $28M Y/Y to $338M, and SG&A spend by $40M to $439M. Gross margin rose nearly 4% Y/Y to 57.7%. $670M was spent on buybacks. Only $123M (4% of revenue) was spent on capex.
    • TI's Q1 results, PR
    | Apr. 22, 2015, 5:57 PM | 2 Comments
  • Dec. 3, 2014, 1:48 PM
    • The Philadelphia Semi Index (SOXX +1.7%) is making fresh highs after Microchip (MCHP +4.1%) slightly upped its calendar Q4 guidance, and stated it continues to "see an improvement in our bookings and billings since our earnings call on October 30, 2014."
    • Chip stocks had also jumped following that earnings call, during which Microchip said it believed the inventory correction that triggered an Oct. 9 warning (and a major chip stock selloff) was mostly over. While a slew of chipmakers provided soft Q4 guidance after Microchip's warning, fears of a major correction didn't pan out.
    • The group outperformed a bit yesterday after Cypress (CY +2.9%) announced it's merging with Spansion (CODE +2.5%), continuing the chip industry's consolidation wave. Several firms have upgraded Cypress and/or Spansion in response, praising the deal's cost synergies.
    • Notable gainers include not only chipmakers, but also chip equipment, test/assembly, and IP licensing firms: ARMH +3.8%. AMBA +3%. MX +9%. MXIM +4.2%. AMCC +3.5%. ADI +3.1%. SIMG +3.7%. AMKR +4.2%. SPIL +3.3%. SYNA +2.7%. ATML +3.7%. ENTR +3.8%. AMAT +2.7%. KLAC +2.5%.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    • Last week: Chip stocks rally after ADI's earnings
    | Dec. 3, 2014, 1:48 PM | 10 Comments
  • Oct. 31, 2014, 11:31 AM
    • Three weeks after providing a calendar Q3 warning that triggered a massive chip stock rout, Microchip (MCHP +7.3%) has provided Q4 guidance that's in-line with lowered estimates. The microcontroller vendor, which has often seen trends emerge ahead of peers, also said it saw most of its inventory correction in Q3, and expects Q4 sales to be just "slightly below typical seasonal levels."
    • Chip stocks are up strongly (SOXX +4%) on a day the Nasdaq is up 1.4%. Since Microchip's warning, a slew of analog chipmakers and microcontroller firms (e.g. Atmel, Freescale, STMicro, Intersil, Linear) have offered light Q4 guidance, and other firms have reported seeing high-end Android weakness (e.g. Synaptics, Cirrus Logic, Amkor).
    • On the other hand, several mobile chipmakers (Skyworks, RF Micro, TriQuint, Silicon Motion), some of which have decent iPhone exposure, have provided strong results and/or guidance. Other chipmakers, such as Broadcom, Texas Instruments, and Xilinx, have rallied after delivering in-line guidance.
    • Susquehanna's Chris Caso: "By now, we think it’s clear that the weakness MCHP saw in September is not company specific ... The question now is if the full extent of the weakness has been dialed into estimates. If it has, then this would be among the shortest and mildest downturns in many years."
    • Notable gainers: SNDK +3.9%. MU +4.1%. AMAT +3.9%. TXN +4.7%. NXPI +3.9%. NVDA +3.5%. MXIM +4.7%. LLTC +5.1%. FCS +9.6%. FSL +8.8%ADI +6.5%. TQNT +6.8%. RFMD +6.5%. ATML +5.9%. AVGO +5.1%. MRVL +4.7%. AMCC +8.9%. BRCM +3.6%. TSM +4.4%. ARMH +3.3%.
    • Intel (INTC +3.5%) has recovered most of the losses it saw yesterday due to Intesil's (ISIL +3.3%) results and guidance, and related comments about a PC chip inventory correction.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Oct. 31, 2014, 11:31 AM | 17 Comments
  • Oct. 31, 2014, 9:06 AM
    | Oct. 31, 2014, 9:06 AM
  • Oct. 30, 2014, 5:23 PM
    • Microchip (NASDAQ:MCHP) expects FQ3 revenue of $508M-$535.3M and EPS of $0.59-$0.64, in-line with a consensus of $525.4M and $0.62. That's better than feared, given the warning issued three weeks ago (sent shockwaves throughout the chip industry).
    • The microcontroller vendor, known for experiencing industry swings ahead of many peers, says it saw "most" of its market correction in FQ2, and expects FQ3 revenue to be only "slightly below typical seasonal levels." Peers such as Atmel, STMicroelectronics, and Freescale have issued light Q4 guidance.
    • Gross margin rose 10 bps Y/Y in FQ2 to 59.1%. It's expected to fall to 58%-58.2% in FQ3.
    • Though officially below consensus, FQ2 revenue matched the guidance provided in Microchip's warning.
    • FQ2 results, PR
    | Oct. 30, 2014, 5:23 PM
  • Oct. 10, 2014, 12:45 PM
    | Oct. 10, 2014, 12:45 PM
Company Description
Microchip Technology, Inc. develops and manufactures specialized semiconductor products. It engages primarily in the design, development, manufacture and marketing of semiconductor products as well as the licensing of Flash intellectual property. The Company operates in the following segments:... More
Sector: Technology
Industry: Semiconductor - Specialized
Country: United States