Summary
Microchip Technology Inc. (MCHP) filed its 2016 10-K on May 24, 2016, detailing its business as a developer, manufacturer, and seller of specialized semiconductor products for embedded control applications. The report highlights the company's diverse product portfolio, including microcontrollers, analog, interface, mixed-signal, and timing devices, serving markets such as automotive, communications, computing, consumer, and industrial control. A significant development reported is the completion of the acquisition of Atmel Corporation on April 4, 2016, for approximately $3.47 billion. This acquisition is expected to expand Microchip's microcontroller offerings and strengthen its position in areas like touch solutions. The company also mentions ongoing investments in R&D, aiming to maintain its competitive edge through new product development and process technology enhancements. The filing emphasizes the company's strategy of owning a substantial portion of its manufacturing resources to ensure cost control and high production yields, while also leveraging third-party manufacturing capabilities.
Financial Highlights
59 data points| Revenue | $2.17B |
| Cost of Revenue | $967.80M |
| Gross Profit | $1.21B |
| R&D Expenses | $372.60M |
| SG&A Expenses | $301.70M |
| Operating Expenses | $853.20M |
| Operating Income | $352.30M |
| Interest Expense | $104.00M |
| Net Income | $324.10M |
| EPS (Basic) | $0.80 |
| EPS (Diluted) | $0.74 |
| Shares Outstanding (Basic) | 406.80M |
| Shares Outstanding (Diluted) | 434.80M |
Key Highlights
- 1Acquisition of Atmel Corporation completed on April 4, 2016, for approximately $3.47 billion, aimed at expanding product portfolio and market reach.
- 2Focus on specialized semiconductor products for a wide range of embedded control applications across key industries like automotive, communications, computing, consumer, and industrial.
- 3Strong emphasis on R&D investment to drive new product development and maintain technological leadership.
- 4Vertically integrated manufacturing strategy with owned facilities to control costs and yields, complemented by outsourced manufacturing.
- 5Global sales network with a significant portion (approximately 84%) derived from international customers, particularly in Asia.
- 6Consistent payment of quarterly cash dividends to shareholders.
- 7Ongoing share repurchase program to return value to stockholders.