Microchip Technology Inc. (Chandler, AZ), a provider of microcontroller (MCU) and analog semiconductors, reported results for the three months ended December 31, 2004. Net sales for the third quarter of fiscal year 2005 were $205.4 million, down 6.9% sequentially from sales of $220.7 million in the immediately preceding quarter, and up 15.4% from sales of $178.0 million in the prior year's third quarter.
GAAP net income for the third quarter of fiscal 2005 was $53.1 million, or $0.25 per diluted share, down 12.1% from GAAP net income of $60.4 million, or $0.29 per diluted share, in the immediately preceding quarter, up 31.6% from non-GAAP net income of $40.4 million or $0.19 per diluted share, in the prior year's third quarter; and up 30.1% from GAAP net income of $40.8 million, or $0.19 per diluted share, in the prior year's third quarter.
"Net sales in the December quarter did not meet our initial expectations, as a result of a combination of lower turns from our direct customers and sell-through in the distributor channel being lower than originally anticipated," said Microchip President and CEO Steve Sanghi. "All product segments and each geographic region were sequentially down, indicating a broad-based impact on our business, as we communicated in our business update on December 1, 2004.
