8-KOther Events

MICROCHIP TECHNOLOGY INC 8-K Report (Apr 23, 2003)

Filed April 23, 2003For Securities:MCHPMCHPP

Summary

Microchip Technology Inc. (MCHP) filed an 8-K report on April 23, 2003, to disclose its fourth quarter and full fiscal year 2003 financial results. A key aspect of this filing is the presentation of financial information on a pro forma basis, which excludes certain charges and accounting adjustments. These adjustments include a Fab 3 impairment charge, an in-process R&D charge related to the PowerSmart acquisition, and a change in accounting principle for revenue recognition with Asian distributors. The company believes that these pro forma results offer investors a clearer view of its core, ongoing operational performance and provide a better baseline for evaluating future earnings potential. The filing also mentions that certain forward-looking outlook items for the first quarter of fiscal year 2004 may exclude accelerated depreciation and other expenses related to the closure of its Fab 1 facility in Chandler, Arizona.

Key Highlights

  • 1Microchip Technology announced its Fourth Quarter and Fiscal Year 2003 financial results on April 23, 2003.
  • 2The company is providing financial results on a pro forma basis, which excludes certain charges. This is intended to offer investors a view of core ongoing performance.
  • 3Excluded items from pro forma results include a Fab 3 impairment charge and an in-process R&D charge associated with the PowerSmart acquisition.
  • 4A change in revenue recognition policy related to sales to regional Asian distributors is also excluded from pro forma results.
  • 5The company is providing a Q1 FY2004 outlook that may exclude accelerated depreciation and related expenses from the closure of Fab 1 in Chandler, Arizona.
  • 6Gordon W. Parnell, Vice President and Chief Financial Officer, signed the report.
  • 7The filing is made under Regulation FD Disclosure (Item 9) and references Results of Operations and Financial Condition (Item 12).

Frequently Asked Questions

The main purpose of this 8-K filing is to report Microchip Technology's fourth quarter and full fiscal year 2003 financial results, as well as to provide an outlook for the first quarter of fiscal year 2004. It also highlights the use of pro forma financial measures to present core operational performance.

Pro forma results are a non-GAAP financial measure that excludes certain items to present a clearer picture of the company's ongoing operational performance. Microchip is using them to provide investors with a helpful baseline for assessing future earnings potential, excluding significant charges and accounting changes.

The pro forma results exclude the Fab 3 (Puyallup, WA) impairment charge, an in-process research and development charge related to the acquisition of PowerSmart, and the cumulative effect of a change in accounting principle for revenue recognition with regional Asian distributors.

The Fab 1 facility closure in Chandler, Arizona, will result in accelerated depreciation and other related expenses. The company indicates that these costs may be excluded from the Q1 FY2004 outlook to provide a clearer view of ongoing operational expectations.