SAN JOSE, Calif. Chip makers Linear Technology Inc. and Microchip Technology Inc. separately posted stellar results.
Microchip Technology Inc. (Chandler, Ariz.) said sales for the first quarter of fiscal 2006 were $218.5 million, up 5.0 percent sequentially from $208.1 million in the immediately preceding quarter, and up 2.7 percent from sales of $212.8 million in the prior year's first quarter.
GAAP net income for the first quarter of fiscal 2006 was a record $61.0 million, or 29 cents per diluted share, up 8.2 percent from GAAP net income of $56.4 million, or 27 cents per diluted share, in the immediately preceding quarter, and up 39.3 percent from GAAP net income of $43.8 million, or 21 cents per diluted share, in the prior year's first quarter.
"All product segments grew sequentially in the June quarter, with microcontrollers leading the way with 5.3 percent sequential sales growth," said Steve Sanghi, Microchip's president and CEO, in a statement.
Net sales for the second fiscal quarter ending Sept. 30, 2005 are currently anticipated to be approximately $227 million, up approximately 4 percent from the June 2005 quarter.
Linear Technology Corp. said sales for the fourth quarter ended July 3, 2005 were $255.8 million, a 7 percent increase from the fourth quarter of the previous year. Net income for the quarter was $106 million, or $0.34 diluted earnings per share, compared with $98.8 million, or $0.31 diluted earnings per share, a year ago.
Lothar Maier, CEO for Linear (Milpitas, Calif.), painted a mixed picture. "For the June quarter our product sales grew 2 percent sequentially from the prior quarter; however, the March quarter also had $40,000,000 of royalty revenue, whereas there was no royalty revenue in the June quarter,” he said in a statement.
“The September quarter that we are entering is difficult to confidently forecast. It is typically a slow quarter for industrial and communication business, yet typically shows growing strength in consumer oriented businesses, as the build period for year end holiday sales approaches,” he said.