GAAP net sales of $834.4 million. Microchip was unable to provide GAAP net sales guidance due to its acquisition of Atmel.
Record Non-GAAP net sales of $881.2 million, above the high end of our non-GAAP net sales guidance provided on November 29, 2016 of $838.9 million to $865.1 million.
On a GAAP basis: gross margins of 55.8%; operating income of $118.1 million; net income from continuing operations of $107.3 million; and EPS from continuing operations of 46 cents per diluted share. There was no First Call published estimate and no guidance provided by Microchip for GAAP EPS.
On a non-GAAP basis: gross margins of 57.8%; record operating income of $289.1 million; record net income from continuing operations of $246.5 million and record EPS from continuing operations of $1.05 per diluted share. Our updated guidance provided on November 29, 2016 was EPS of 87 cents to 94 cents.
Record cash flow from operations of $290.8 million.
Record quarterly dividend declared of 36.10 cents per share.
CHANDLER, Ariz., Feb. 07, 2017 (GLOBE NEWSWIRE) -- Microchip Technology Incorporated (NASDAQ:MCHP), a leading provider of microcontroller, mixed signal, analog and Flash-IP solutions, today reported results for the three months ended December 31, 2016 as summarized in the following table:
|(in millions, except per share amounts and percentages)||Three Months Ended December 31, 2016|
|Income Tax (Benefit) Provision||$||(23.8||)||$||22.4|
|Net Income from Continuing Operations||$||107.3||12.9||%||$||246.5||28.0||%|
|Earnings per Diluted Share from Continuing Operations||46 cents||$||1.05|
|Net Loss from Discontinued Operations||$||(0.2||)||—||%|
|Loss per Diluted Share from Discontinued Operations||0 cents|
|1 See the "Use of Non-GAAP Financial Measures" section of this release.|
GAAP net sales for the third quarter of fiscal 2017 were $834.4 million, up 54.4% from GAAP net sales of $540.3 million in the prior year's third fiscal quarter. GAAP net income from continuing operations for the third quarter of fiscal 2017 was $107.3 million, or 46 cents per diluted share, up from GAAP net income of $61.2 million, or 28 cents per diluted share, in the prior year's third fiscal quarter.
Non-GAAP net sales for the third quarter of fiscal 2017 were $881.2 million, up 59.6% from non-GAAP net sales of $552.0 million in the prior year's third fiscal quarter. Non-GAAP net income from continuing operations for the third quarter of fiscal 2017 was $246.5 million, or $1.05 per diluted share, up 78.1% from non-GAAP net income of $138.4 million, or 64 cents per diluted share, in the prior year's third fiscal quarter. For the third quarters of fiscal 2017 and fiscal 2016, our non-GAAP results exclude the effect of discontinued operations, share-based compensation, expenses related to our acquisition activities (including intangible asset amortization, inventory valuation costs, severance costs, and legal and other general and administrative expenses associated with acquisitions), preclusion of revenue recognition under GAAP for inventory in the distribution channel on the acquisition dates of our acquisitions, revenue recognition changes related to Atmel and Micrel distributors, non-cash interest expense on our convertible debentures, gains on equity securities, impairments on available-for-sale investments, the related income tax implications of these items, tax adjustments in accordance with ASC 740-270 and non-recurring tax events. A reconciliation of our non-GAAP and GAAP results is included in this press release.
Microchip announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of 36.10 cents per share. The quarterly dividend is payable on March 7, 2017 to stockholders of record on February 21, 2017.
"Our December quarter financial results were extremely strong," said Steve Sanghi, Chief Executive Officer. "Our non-GAAP net sales, gross margin percentage, operating profit percentage and diluted earnings per share all exceeded the high end of our updated guidance provided on November 29, 2016. We were not able to provide GAAP guidance for the December quarter due to our acquisition of Atmel."