Microchip Provides Break-Out Of Organic Sales Growth Versus Acquisition Growth

CHANDLER, AZ -- Microchip Technology Incorporated is providing the break-out of its net sales derived from organic growth versus growth derived from acquisitions.

Steve Sanghi, Microchip's President and CEO, commented, "Over a six year period from CY2009 to CY2015, with our December 2015 quarter net sales projected at our guidance mid-point, Microchip's total net sales grew at a compounded annual growth rate (CAGR) of 17.3%, including acquisitions. Over the same period, excluding acquisitions, Microchip's net sales grew at a CAGR of 8.3%, versus the semiconductor industry's CAGR of 6.7%. Thus, Microchip's organic net sales grew at a higher rate than the industry over this period and our acquisitions augmented our organic growth, resulting in more than doubling our growth rate."

Mr. Sanghi added, "We have also posted on our website a comparison of Microchip's results compared to the results of many of our microcontroller and analog/mixed signal competitors. Our organic net sales grew faster than all of them except for one, despite most of them also having acquisition growth. In fact, our total net sales grew at more than twice the rate of any of our competitors included in our analysis."

Mr. Sanghi further added, "Our growth rate evidences the success of our "elbow-out" acquisition strategy that we have often shared with investors, where our organic sales growth is better than the market and acquisitions are adding further growth and not replacing the organic growth."

"From an earnings perspective, our non-GAAP earnings per share grew at a CAGR of 17.3% over the same six year period. Additionally, the earnings per share derived from our organic growth excluding acquisitions grew at a CAGR of 11.6% per year," concluded Mr. Sanghi.

There will be no conference call associated with this press release. Microchip's President and CEO, Steve Sanghi, is presenting at the Credit Suisse 19th Annual Technology, Media and Telecom Conference tomorrow, Wednesday, December 2, 2015. A live webcast and replay of the presentation will be available at http://www.microchip.com/. As referenced above, please refer to the slides posted on our website for important additional information about our organic sales growth versus acquisition growth and other matters in this press release

Microchip has posted three slides that provide this break-out on the investor relations page of its website at http://www.microchip.com/investors

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