SAN JOSE, Calif. - Microchip, Rambus and SanDisk separately posted mixed results.
Microchip Technology Inc. said sales for the third quarter of fiscal 2011 were $367.8 million, down 3.8 percent sequentially from net sales of $382.3 million in the immediately preceding quarter, and up 47.1 percent from net sales of $250.1 million in the prior year’s third quarter.
GAAP net income from continuing operations for the third quarter of fiscal 2011 was $101.9 million, or $0.52 per diluted share, down 2.7 percent from GAAP net income from continuing operations of $104.7 million, or $0.55 per diluted share, in the immediately preceding quarter, and up 46.9 percent from GAAP net income of $69.4 million, or $0.37 per diluted share, in the prior year’s third quarter.
Microchip partly missed Wall Street's expectations, which called for earnings of $0.57 per share on sales of $361.82 million, according to Zacks.
“Microchip’s performance in the December 2010 quarter exceeded our expectations,'' said Steve Sanghi, president and CEO, in a statement. “The SST acquisition has done exceptionally well for Microchip. The technology licensing business produced an all-time record high in revenue of $19.1 million, up 10.3 percent sequentially.
“Our microcontroller business performed better than we expected in the December quarter with net sales only down 2.2 percent on a sequential basis and up 24 percent from the year ago quarter. For calendar 2010 our microcontroller revenue was up 42.4 percent from the calendar 2009 levels,” said Ganesh Moorthy, chief operating officer. “Our 32-bit microcontroller line, which took a pause in the September quarter, had a strong quarter of revenue growth and was up 45 percent sequentially, achieving a new record. For calendar 2010, net sales for our 16-bit microcontroller business was up 113.6 percent and our 32-bit microcontroller business was up 260 percent. We believe we gained significant market share in all three microcontroller segments in calendar 2010.”
For Q4, Microchip said sales are projected to range from $367.8 to $378.9 million. It is projected to earn $0.49 to $0.52.
On the IP front, Rambus Inc. reported financial results for the fourth quarter and the fiscal year ended 2010. Revenue for the fourth quarter of 2010 was $90.9 million, up 186 percent sequentially from the third quarter of 2010 primarily due to the revenue related to the Elpida, Renesas and Nvidia license agreements. As compared to the fourth quarter of 2009, revenue was up 195 percent primarily due to the revenue recognized from the agreements signed with Samsung and Elpida during 2010.
Net income for the fourth quarter of 2010 was $33.1 million as compared to a net loss of $20.6 million in the third quarter of 2010 and a net loss of $23.3 million in the fourth quarter of 2009. Diluted net income per share for the fourth quarter of 2010 was $0.29 as compared to a net loss per share of $0.18 in the third quarter of 2010 and a net loss per share of $0.22 for the fourth quarter of 2009.
Rambus was supposed to earn $0.30 a share on sales of $89.30 million.
On the NAND flash side, SanDisk Corp. announced results for the fourth quarter and fiscal year ended Jan. 2, 2011. Total fourth quarter revenue of $1.33 billion increased 7 percent on a year-over-year basis and increased 8 percent on a sequential basis. Total revenue for fiscal 2010 of $4.83 billion increased 35 percent from $3.57 billion in fiscal 2009.
Fourth quarter net income, in accordance with U.S. Generally Accepted Accounting Principles (GAAP), was $485 million, or $2.01 per diluted share, compared to net income of $340 million, or $1.45 per diluted share, in the fourth quarter of fiscal 2009 and $322 million, or $1.34 per diluted share, in the third quarter of fiscal 2010. The GAAP net income for fiscal 2010 was $1.30 billion, or $5.44 per diluted share, compared to net income of $415 million, or $1.79 per diluted share, in fiscal 2009. The fourth quarter of fiscal 2010 includes a $203 million tax provision benefit related to the release of net deferred tax asset valuation allowances.
SanDisk beat Wall Street's estimates, which called for $1.09 per share on sales of $1.31 billion.