CHANDLER (dpa-AFX) - Microchip Technology Incorporated (MCHP), a provider of microcontroller, mixed signal, analog and Flash-IP solutions, announced, for second-quarter, the company expects: net sales in the range of $844.0 million to $877.8 million; and earnings per share in the range of 83 cents to 91 cents. The company's guidance provided on May 4, 2016 was EPS of 70 to 79 cents. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.80 on revenue of $836.72 million. Analysts' estimates typically exclude special items.
Steve Sanghi, Chairman and CEO, said: 'We expect total net sales in the September 2016 quarter including Atmel to be flat to up 4% sequentially. We expect gross margin to be between 55.6% and 56.2%. We expect overall operating expenses from continuing operations to be between 27.2% and 27.9% of net sales, marking another significant reduction in Atmel's operating expenses. We expect operating income from continuing operations to be between 27.7% and 29% of net sales.'
Microchip Technology said the company is tracking well ahead of its guidance for non-GAAP earnings per share for fiscal 2017. 'Based on the rapid integration progress we made in the June quarter, we are increasing the accretion target from Atmel from 25 cents to 40 cents for fiscal 2017,' Sanghi said.
For the first quarter, non-GAAP net income from continuing operations for the first quarter of fiscal 2017 was $194.0 million, or 84 cents per share, up 30.2% from non-GAAP net income of $148.9 million, or 69 cents per share, in the prior year's first quarter. On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $0.74 for the quarter. Analysts' estimates typically exclude special items.
For the first quarter, non-GAAP net sales were $844.0 million, up 58.1% from $534.0 million in the prior year's first quarter. Analysts expected revenue of $821.41 million for the quarter.
Microchip announced its Board of Directors has declared a quarterly cash dividend on its common stock of 36.0 cents per share. The quarterly dividend is payable on September 6, 2016 to stockholders of record on August 22, 2016.
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