Microchip Technology, a developer of semiconductor products, has reported net sales of $368m for the third quarter of the FY11, an increase of 47.2% as compared to net sales of $250m of the same quarter previous year.
The company reported a gross profit of $216.4m, compared to $146m in the same period a year ago.
Operating income was $117.4m, an increase of 62% compared to $72.6m of the third quarter of fiscal 2010.
For the third quarter ended December 31 2010, the company posted a net income of $100.8m or diluted net income per share of $0.51, compared to net income of $69.4m or diluted net income per share of $0.37 of the same quarter of previous year.
Microchip Technology president and CEO Steve Sanghi said the December 2010 quarter exceeded their expectations as net sales, gross margins, operating income and earnings per share were better than the mid-point of their guidance provided on November 30, 2010.
"The gross margin upside was driven by ongoing cost reductions in our manufacturing processes, a favorable product mix and continued improvements in the product lines we acquired from SST," Sanghi said.
"The operating expenses continue to be well managed and came in at the mid-point of our guidance at 24.1% of sales on a non-GAAP basis in the December quarter."
Microchip Technology expects net sales in the fourth quarter of fiscal 2011 to be in the range of $367.8m to $378.9m and net income to be in a range of $99.4m to $104.6m.
