Microchip Technology Updates Financial Guidance for First Quarter Fiscal 2021 - Seite 2

There will be no conference call associated with this press release.  Microchip is presenting at the B of A Securities Global Technology Conference on Wednesday, June 3, 2020 at 1:45PM (Pacific).  Microchip is also presenting at the Needham 4^th Annual Automotive Tech Day on Wednesday, June 3, 2020 at 7:30AM (Pacific).  The investor slides that will be presented at the conferences will be posted to Microchip’s website today, and a live webcast and replay of this presentations will be available at www.microchip.com.

Cautionary Statement:

The statements in this release relating to expecting consolidated net sales for the June quarter to be $1.247 billion to $1.326 billion, or between flat and down 6% sequentially with a mid-point of down 3.0%, GAAP earnings per share expected to be between $0.25 and $0.39 and non-GAAP earnings per share expected to be between $1.35 and $1.53, not being able to estimate the amount of Special Charges and Other, Net and the amount of any gain or loss on the recently completed debt retirement and convertible debt exchange transactions, our business performing better than we expected during our May 7 earnings conference call, that supply chain disruptions which were primarily in Malaysia and Philippines have eased, that we have begun to make up for lost production, and expect to continue to gain ground through the end of this quarter, that factories in Europe and North America have started to reopen, quicker recovery from supply chain disruptions versus our earlier expectations, and a lower level of June 2020 quarter cancellations and pushouts than earlier anticipated are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: any continued economic uncertainty due to the impact of the COVID-19 virus, monetary policy, political, geopolitical, trade, civil disobedience or other issues in the U.S. or internationally, any further unexpected fluctuations or weakness in the U.S. and global economies (including China), changes in demand or market acceptance of our products and the products of our customers; our ability to successfully integrate the operations and employees, retain key employees and customers and otherwise realize the expected synergies and benefits of our acquisitions; the impact of current and future changes in U.S. corporate tax laws (including the Tax Cuts and Jobs Act of 2017), foreign currency effects on our business; the mix of inventory we hold and our ability to satisfy short-term orders from our inventory; changes in utilization of our manufacturing capacity and our ability to effectively manage and expand our production levels; competitive developments including pricing pressures; the level of orders that are received and can be shipped in a quarter; changes or fluctuations in customer order patterns and seasonality; the impact of any future significant acquisitions that we may make; our ability to obtain a sufficient supply of wafers from third party wafer foundries and the cost of such wafers, the costs and outcome of any current or future litigation or other matters involving our Microsemi acquisition, the Microsemi business, intellectual property, customers, or other issues; the costs and outcome of any current or future tax audit or investigation regarding our business or the business of Microsemi, our actual average stock price in the June 2020 quarter and the impact such price will have on our share count; fluctuations in our stock price and trading volume which could impact the number of shares we acquire under our share repurchase program and the timing of such repurchases; disruptions in our business or the businesses of our customers or suppliers due to natural disasters (including any floods in Thailand), terrorist activity, armed conflict, war, worldwide oil prices and supply, public health concerns (including the COVID-19 virus) or disruptions in the transportation system; and general economic, industry or political conditions in the United States or internationally.