On Jan. 31, semiconductor products maker Microchip Technology (NASDAQ:MCHP) released third-quarter earnings for the period ended Dec. 31.

  • Net sales increased by 7% as the company shipped 21,444 new development systems -- the highest such number in its history.
  • Management is anticipating net sales for Q4 '07 to be flat, with EPS around $0.33.
  • Microchip Technology carries a middle-of-the-road three-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$251.0

$234.9

6.9%

Net Profit

$72.8

$40.1

81.6%

EPS

$0.33

$0.19

73.7%

Diluted Shares

220.9

215.7

2.4%



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2007

Q3 2006

Change*

Gross Margin

59.6%

59.7%

(0.1)

Operating Margin

32.5%

36.0%

(3.6)

Net Margin

29.0%

17.1%

11.9

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Cash + ST Invest.

$728.6

$992.4

(26.6%)

Accounts Rec.

$120.1

$112.0

7.2%

Inventory

$121.9

$114.6

6.3%



Liabilities

Q3 2007

Q3 2006

Change

Accounts Payable*

$253.2

$207.6

22.0%

Long-Term Debt

--

--

--

*Includes other accrued liabilities.

Learn the ways of the balance sheet.

Cash Flow Highlights

You'd think this $7.7 billion company could afford to prove a cash flow statement with earnings.

Find out why Fools always follow the money.

Related Companies:

  • Altera (NASDAQ:ALTR)
  • LSI Logic (NYSE:LSI)
  • First Solar (NASDAQ:FSLR)
  • Silicon Labs (NASDAQ:SLAB)
  • Trident Microsys (NASDAQ:TRID)

Related Foolishness:

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