This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Microchip Technology's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: MCHP

In the September quarter, the non-GAAP tax rate was 12.9%, and the GAAP tax rate was 12.2%. Our tax rate is impacted by the mix of geographical profits, withholding taxes associated with our licensing business, gains or losses on trading securities and a percentage of our cash that is invested in tax advantage securities. We expect our combined forward-looking effective tax rate on both the GAAP and non-GAAP bases to be about 12.75% to 13.25%.

To summarize the after-tax impact of the non-GAAP adjustments had on Microchip's earnings per share in the September quarter, share-based compensation was about $0.041, acquisition-related items were about $0.014, losses on trading securities was about $0.006 and noncash interest expense was about $0.006. The dividend declared today of $0.348 per share will be paid on December 5, 2011, to shareholders of record on November 21, 2011. The cash payment associated with this dividend will be approximately $66.7 million.

Moving on to the balance sheet. Microchip's inventory at September 30, 2011, was $211.2 million or 132 days, up 13 days from the prior quarter level. Inventory at our distributors was 46 days, which is up 3 days from the prior quarter level. We continue to see an increasing trend of large OEM customers using distribution to hold bonded inventory on their behalf, in order to achieve 0 lead times without having to carry inventory on their balance sheets. This has resulted in a general increase over time in the amount of inventory our distributors carry. However, I remind you that our distribution revenue throughout the world is recognized on a sell-through basis.

At September 30, Microchip's accounts receivables balance was $142.4 million, a decrease of 27.4% from the balance as of the end of June. The decrease in receivables was driven by the sequential revenue decline and differences in the shipment linearity between the June and September quarters. Receivable balances continue to be in great condition, with excellent payment performance from our customers. As of September 30, Microchip's cash and total investment position was approximately $1.78 billion, and was up $58.1 million from the prior quarter levels. Our total cash and investment position is projected to grow by approximately $75 million to $85 million in the December quarter, prior to our dividend payment.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,600.25 +243.38 1.40%
S&P 500 2,041.01 +28.12 1.40%
NASDAQ 4,713.1480 +68.8360 1.48%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs