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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
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.
Apr. 13, 2015, 9:49 AM
- Micrel's (NASDAQ:MCRL) 2015 annual meeting has been pushed back from June 19 to August 4. The analog/mixed-signal chipmaker states the move will "allow the Board and the Company's management to further evaluate the Company's strategic alternatives."
- Micrel announced a strategic review on Jan. 20 amid a chip industry consolidation wave that still isn't showing any signs of letting up.
Jan. 20, 2015, 10:58 AM
- Micrel's (NASDAQ:MCRL) board has "unanimously decided to undertake a comprehensive review of strategic alternatives to enhance value for shareholders."
- A Transactions Committee composed of three directors has been formed, and Credit Suisse hired to advise.
- Plenty of other chipmakers have been acquired over the last 15 months.
Jan. 6, 2015, 1:36 PM
- Up 30% in 2014, the Philadelphia Semi Index (SOXX -2.2%) has fallen over 4% thus far in 2015. Today's decline comes as the Nasdaq drops 1.6%.
- Many names are posting 3%+ losses. SWKS -4.2%. QRVO -5.8%. AMAT -3.4%. KLAC -3.1%. SYNA -5.4%. IPHI -9%. ARMH -5.4%. SIMO -4.5%. MCRL -3.9%. AMCC -3.9%. CODE -5.1%. CY -4.6%. QUIK -7.9%.
- This morning, Gartner estimated global chip sales rose 7.9% in 2014 to $339.8B, a little less than the 9.4% recently estimated by IHS. Sell-side firms have forecast industry growth will fall to the ~5% range in 2015.
- Gartner thinks memory sales rose 16.9%, fueled by a 31.7% increase in DRAM sales. All other chip markets rose by 5.4%, a marked improvement from 2013's 0.8%. Intel (15% share) and Samsung (10.4%) claimed over a quarter of industry sales between them. Qualcomm (5.6%), Micron (4.9%), and SK Hynix (4.7%) rounded out the top-5.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Nov. 29, 2012, 10:04 AMAnalog chipmaker Semtech (SMTC +13.8%) has soared and is near its 52-week high after soundly beating FQ3 estimates and guiding for FQ4 revenue of $146M-$152M vs. a $147.6M consensus, pleasing investors on edge over troubles faced by peers. Semtech's gross margin rose 970 bps Q/Q to 59.2%, and is expected to be in the range of 58.3%-58.9% in seasonally weak FQ4. Micrel (MCRL +2.9%), Microsemi (MSCC +2.9%), and Intersil (ISIL +1.6%) might be rallying in sympathy. | Nov. 29, 2012, 10:04 AM
Oct. 25, 2012, 4:56 PMMicrel (MCRL): Q3 EPS of $0.10 beats by $0.01. Revenue of $62.9M (-1.2% Y/Y) misses by $0.8M. Shares -2% AH. (PR) | Oct. 25, 2012, 4:56 PM
Micrel Inc designs, develops, manufactures and markets analog, power and mixed-signal integrated circuits. The Company also manufactures custom analog and mixed-signal circuits and provides wafer foundry services.
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