MICROCHIP TECHNOLOGY INCORPORATED (Exact Name Of Registrant As Specified In Its Charter) |
Delaware | 0-21184 | 86-0629024 |
(State Or Other Jurisdiction Of Incorporation) | (Commission File No.) | (IRS Employer Identification No.) |
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¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits | |
99.1 | Microchip Technology Announces Record Net Sales for Fourth Quarter and Fiscal Year 2017 |
Dated: May 9, 2017 | Microchip Technology Incorporated (Registrant) |
By: /s/ J. Eric Bjornholt | |
J. Eric Bjornholt Vice President, Chief Financial Officer (Principal Accounting and Financial Officer) |
99.1 | Microchip Technology Announces Record Net Sales for Fourth Quarter and Fiscal Year 2017 |
![]() | EXHIBIT 99.1 NEWS RELEASE INVESTOR RELATIONS CONTACT: J. Eric Bjornholt -- CFO..... (480) 792-7804 |
• | For the quarter ended March 31, 2017 |
◦ | Record GAAP and Non-GAAP net sales of $902.7 million. Our updated guidance provided on February 28, 2017 was net sales of $876.8 million to $903.2 million. |
◦ | On a GAAP basis: gross margins of 59.0%; operating income of $154.1 million; net income from continuing operations of $136.9 million; and EPS from continuing operations of 57 cents per diluted share. Microchip did not provide updated GAAP guidance on February 28, 2017 due to its February 2017 financing activities and the related accounting impact not being available at that time. |
◦ | On a Non-GAAP basis: gross margins of 59.2%; record operating income of $321.2 million; record net income from continuing operations of $276.9 million and record EPS from continuing operations of $1.16 per diluted share. Our updated guidance provided on February 28, 2017 was EPS of $1.02 to $1.10 per share. |
◦ | Record cash flow from operations of $322.6 million. |
◦ | Record quarterly dividend declared of $0.3615 cents per share. |
• | For Fiscal Year 2017 |
◦ | Record GAAP net sales of $3.408 billion. |
◦ | Record Non-GAAP net sales of $3.502 billion. |
◦ | On a GAAP basis: gross margins of 51.6%; operating income of $275.8 million; net income from continuing operations of $170.6 million; and EPS from continuing operations of 73 cents per diluted share. |
◦ | On a Non-GAAP basis: gross margins of 57.6%; operating income of $1.108 billion; net income from continuing operations of $937.1 million and record EPS from continuing operations of $3.99 per diluted share. |
(in millions, except per share amounts and percentages) | Three Months Ended March 31, 2017 | Year Ended March 31, 2017 | ||||||
GAAP | % of Net Sales | Non-GAAP1 | % of Net Sales | GAAP | % of Net Sales | Non-GAAP1 | % of Net Sales | |
Net Sales | $902.7 | $902.7 | $3,407.8 | $3,501.7 | ||||
Gross Margin | $532.8 | 59.0% | $534.7 | 59.2% | $1,757.2 | 51.6% | $2,015.5 | 57.6% |
Operating Income | $154.1 | 17.1% | $321.2 | 35.6% | $275.8 | 8.1% | $1,107.7 | 31.6% |
Other Expense | $(82.3) | $(18.8) | $(186.0) | $(83.3) | ||||
Income Tax (Benefit) Provision | $(65.1) | $25.5 | $(80.8) | $87.4 | ||||
Net Income from Continuing Operations | $136.9 | 15.2% | $276.9 | 30.7% | $170.6 | 5.0% | $937.1 | 26.8% |
Earnings per Diluted Share from Continuing Operations | 57 cents | $1.16 | 73 cents | $3.99 | ||||
Net Loss from Discontinued Operations | $— | —% | $(6.0) | (0.2)% | ||||
Loss per Diluted Share from Discontinued Operations | 0 cents | (2) cents |
• | Microchip issued $2.645 billion in convertible bonds, paid down $1.683 billion of borrowings under its revolving line of credit, and extinguished $431.3 million of 2037 convertible bonds in a financially accretive transaction. |
• | Microchip released the GigEpack - a comprehensive portfolio of advanced Gigabit Ethernet products. GigEpack is a suite of compliance-tested products and tools including the industry's first fault-tolerant Ethernet switch. |
• | The latest PIC®18F MCU, the "K42," was announced which features a versatile array of Core Independent Peripherals (CIPs) to simplify complex designs. The family also features high-resolution analog, on-chip Direct Access Memory (DMA) and vectored interrupts for fast processing. |
• | Microchip furthered expanded its family of tinyAVR® MCUs with the new ATtiny1617 devices. These latest tinyAVR MCUs increase system throughput while lowering power consumption in embedded applications. |
• | Microchip released the CEC1702, a hardware cryptography-enabled MCU to help simplify the development of smart, connected and secure solutions. The CEC1702 is a feature-rich MCU that streamlines security implementation. |
• | The PIC1615386 family was released, easing the design process by offering more CIPs. The PIC16F15386 family is the most powerful launching point into the 8-bit PIC® MCU portfolio. |
• | Microchip's online store, microchipDIRECT, revolutionized the semiconductor purchasing process with the release of new features such as volume pricing and enhanced ordering flexibility on its mobile-optimized platform. The full-service channel now also includes all former Atmel products. |
• | Industry's first 'zigbee PRO with Green Power Certified Platform' was unveiled by Microchip. The BitCloud 4.0 complete zigbee® software development kit is now available with features such as mesh networking and Green Power. |
• | Microchip continued to prove that MOST® technology is still a leading standard for automotive infotainment, announcing several new design wins for the technology. |
• | A new single-chip Digitally Enhanced Power Analog (DEPA) solution was announced. The MCP19215 is ideal for DC-DC power conversion and offers flexible control for applications needing variable output power supplies and dynamic reconfiguration. |
• | Microchip debuted the motorBench™ Development Suite, an advanced motor control software plug-in for Microchip's MPLAB® X Integrated Development Environment (IDE) with auto tuning and self-commissioning capabilities. |
• | Silicon Storage Technology (SST), Microchip's licensing subsidiary, announced the qualification of embedded SuperFlash® technology for the 110 nm CMOS process. They also announced that StarChip's secure IC for bank cards is now enabled by SuperFlash technology. |
• | Microchip announced the latest family of live updatable controllers for digital power. The dsPIC33EP128GS808 digital signal controller family offers up to 128 KB of Flash while enabling firmware updates to power supplies with zero down-time. |
• | Microchip was named one of the 2017 Best Companies to Work for in NY by Best Companies NY. |
Microchip Consolidated Guidance | |||
GAAP | Non-GAAP Adjustments | Non-GAAP1 | |
Net Sales | $920.7 to $965.9 million | $920.7 to $965.9 million | |
Gross Margin2 | 59.15% to 59.65% | $3.2 to $3.4 million | 59.5% to 60.0% |
Operating Expenses | 38.35% to 38.85% | $141.3 to $148.3 million | 23.0% to 23.5% |
Operating Income | 20.3% to 21.3% | $144.6 to $151.6 million | 36.0% to 37.0% |
Other Expense | $47.7 million | $26.5 million | $21.2 million |
Income Tax Expense (Benefit) | (2.0%) to 2.0% | $25.3 to $32.1 million | 8.0% to 9.0% |
Net Income | $143.4 to $156.5 million | $138.9 to $152.8 million | $282.4 to $309.3 million |
Diluted Common Shares Outstanding3 | Approximately 242.3 to 243.3 million shares | Approximately 242.3 to 243.3 million shares | |
Earnings per Diluted Share3 | 59 to 64 cents | About 58 to 63 cents | $1.17 to $1.27 |
• | Microchip's inventory days at June 30, 2017 are expected to be 98 to 107 days. Our actual inventory level will depend on the inventory that our distributors decide to hold to support their customers, overall demand for our products and our production levels. |
• | Capital expenditures for the quarter ending June 30, 2017 are expected to be approximately $60 million. Capital expenditures for all of fiscal year 2018 are expected to be approximately $170 million. We are continuing to invest in the equipment needed to support the growth of our production capabilities for fast growing new products and technologies. |
1 | Use of Non-GAAP Financial Measures: Our non-GAAP adjustments, where applicable, include 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 resulting from changes to business practices with those distributors, a loss |
2 | Generally, gross margin fluctuates over time, driven primarily by the mix of microcontrollers, mixed-signal products, analog products and memory products sold and licensing revenue; variances in manufacturing yields; fixed cost absorption; wafer fab loading levels; costs of wafers from foundries; inventory reserves; pricing pressures in our non-proprietary product lines; and competitive and economic conditions. Operating expenses fluctuate over time, primarily due to net sales and profit levels. |
3 | Diluted Common Shares Outstanding can vary for, among other things, the trading price of our common stock, the exercise of options or vesting of restricted stock units, the potential for incremental dilutive shares from our convertible debentures (additional information regarding our share count is available in the investor relations section of our website under the heading "Supplemental Financial Information"), and repurchases or issuances of shares of our common stock. The diluted common shares outstanding presented in the guidance table above assumes an average Microchip stock price in the June 2017 quarter between $77 and $80 per share (however, we make no prediction as to what our actual share price will be for such period or any other period and we cannot estimate what our stock option exercise activity will be during the quarter). |
MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands except per share amounts) (unaudited) | ||||||||||||||||
Three Months ended | Twelve Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net sales | $ | 902,666 | $ | 557,647 | $ | 3,407,807 | $ | 2,173,334 | ||||||||
Cost of sales | 369,840 | 254,868 | 1,650,611 | 967,870 | ||||||||||||
Gross profit | 532,826 | 302,779 | 1,757,196 | 1,205,464 | ||||||||||||
Research and development | 127,182 | 95,638 | 545,293 | 372,596 | ||||||||||||
Selling, general and administrative | 111,160 | 78,293 | 499,811 | 301,670 | ||||||||||||
Amortization of acquired intangible assets | 94,311 | 48,132 | 337,667 | 174,896 | ||||||||||||
Special charges and other, net | 46,086 | 770 | 98,608 | 3,957 | ||||||||||||
Operating expenses | 378,739 | 222,833 | 1,481,379 | 853,119 | ||||||||||||
Operating income | 154,087 | 79,946 | 275,817 | 352,345 | ||||||||||||
Losses on equity method investments | (55 | ) | (56 | ) | (222 | ) | (345 | ) | ||||||||
Other expense, net | (82,230 | ) | (22,277 | ) | (185,808 | ) | (70,707 | ) | ||||||||
Income before income taxes | 71,802 | 57,613 | 89,787 | 281,293 | ||||||||||||
Income tax benefit | (65,106 | ) | (9,742 | ) | (80,805 | ) | (42,632 | ) | ||||||||
Net income from continuing operations | 136,908 | 67,355 | 170,592 | 323,925 | ||||||||||||
Discontinued operations: | ||||||||||||||||
Loss from discontinued operations | — | — | (7,514 | ) | — | |||||||||||
Income tax benefit | — | — | (1,561 | ) | — | |||||||||||
Net loss from discontinued operations | — | — | (5,953 | ) | — | |||||||||||
Net income | 136,908 | 67,355 | 164,639 | 323,925 | ||||||||||||
Less: Net loss attributable to noncontrolling interests | — | — | — | 207 | ||||||||||||
Net income attributable to Microchip Technology | $ | 136,908 | $ | 67,355 | $ | 164,639 | $ | 324,132 | ||||||||
Basic net income per common share attributable to Microchip Technology stockholders | ||||||||||||||||
Net income from continuing operations | $ | 0.61 | $ | 0.33 | $ | 0.79 | $ | 1.59 | ||||||||
Net loss from discontinued operations | — | — | (0.03 | ) | — | |||||||||||
Net income attributable to Microchip Technology | $ | 0.61 | $ | 0.33 | $ | 0.76 | $ | 1.59 | ||||||||
Diluted net income per common share attributable to Microchip Technology stockholders | ||||||||||||||||
Net income from continuing operations | $ | 0.57 | $ | 0.31 | $ | 0.73 | $ | 1.49 | ||||||||
Net loss from discontinued operations | — | — | (0.02 | ) | — | |||||||||||
Net income attributable to Microchip Technology | $ | 0.57 | $ | 0.31 | $ | 0.71 | $ | 1.49 | ||||||||
Basic common shares outstanding | 222,703 | 203,736 | 217,196 | 203,384 | ||||||||||||
Diluted common shares outstanding | 239,171 | 217,711 | 234,806 | 217,388 |
MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) | |||||||
ASSETS | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
(Unaudited) | |||||||
Cash and short-term investments | $ | 1,302,772 | $ | 2,446,035 | |||
Accounts receivable, net | 478,373 | 290,183 | |||||
Inventories | 417,202 | 306,815 | |||||
Assets held for sale | 6,459 | — | |||||
Other current assets | 100,234 | 53,680 | |||||
Total current assets | 2,305,040 | 3,096,713 | |||||
Property, plant and equipment, net | 683,338 | 609,396 | |||||
Long-term investments | 107,457 | 118,549 | |||||
Other assets | 4,582,741 | 1,713,225 | |||||
Total assets | $ | 7,678,576 | $ | 5,537,883 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Accounts payable and accrued liabilities | $ | 361,683 | $ | 198,577 | |||
Deferred income on shipments to distributors | 292,815 | 183,432 | |||||
Current portion of long-term debt | 49,952 | — | |||||
Total current liabilities | 704,450 | 382,009 | |||||
Long-term debt | 2,900,524 | 2,453,405 | |||||
Long-term income tax payable | 176,640 | 111,061 | |||||
Long-term deferred tax liability | 409,045 | 399,218 | |||||
Other long-term liabilities | 217,206 | 41,271 | |||||
Stockholders' equity | 3,270,711 | 2,150,919 | |||||
Total liabilities and stockholders' equity | $ | 7,678,576 | $ | 5,537,883 |
Three Months ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales, as reported | $ | 902,666 | $ | 557,647 | $ | 3,407,807 | $ | 2,173,334 | |||||||
Distributor revenue recognition adjustment | — | 10,791 | 93,879 | 40,501 | |||||||||||
Non-GAAP net sales | $ | 902,666 | $ | 568,438 | $ | 3,501,686 | $ | 2,213,835 |
Three Months ended | Twelve Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||
Gross profit, as reported | $ | 532,826 | $ | 302,779 | $1,757,196 | $1,205,464 | |||||||
Distributor revenue recognition adjustment, net of product cost | — | 5,395 | 50,323 | 23,794 | |||||||||
Share-based compensation expense | 3,248 | 1,927 | 18,713 | 8,252 | |||||||||
Manufacturing excursion | (1,350 | ) | 3,624 | (550 | ) | 3,624 | |||||||
Acquisition-related restructuring and acquired inventory valuation costs | — | 18,197 | 189,774 | 45,646 | |||||||||
Non-GAAP gross profit | $ | 534,724 | $ | 331,922 | $2,015,456 | $1,286,780 | |||||||
Non-GAAP gross profit percentage | 59.2 | % | 58.4 | % | 57.6 | % | 58.1 | % |
Three Months ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Research and development expenses, as reported | $ | 127,182 | $ | 95,638 | $ | 545,293 | $ | 372,596 | |||||||
Share-based compensation expense | (9,232 | ) | (8,399 | ) | (46,801 | ) | (32,022 | ) | |||||||
Acquisition-related and other costs | (833 | ) | — | (808 | ) | — | |||||||||
Non-GAAP research and development expenses | $ | 117,117 | $ | 87,239 | $ | 497,684 | $ | 340,574 | |||||||
Non-GAAP research and development expenses as a percentage of net sales | 13.0 | % | 15.3 | % | 14.2 | % | 15.4 | % |
Three Months ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Selling, general and administrative expenses, as reported | $ | 111,160 | $ | 78,293 | $ | 499,811 | $ | 301,670 | |||||||
Share-based compensation expense | (9,586 | ) | (6,991 | ) | (62,641 | ) | (31,146 | ) | |||||||
Acquisition-related and other costs | (5,139 | ) | (5,040 | ) | (27,131 | ) | (9,738 | ) | |||||||
Non-GAAP selling, general and administrative expenses | $ | 96,435 | $ | 66,262 | $ | 410,039 | $ | 260,786 | |||||||
Non-GAAP selling, general and administrative expenses as a percentage of net sales | 10.7 | % | 11.7 | % | 11.7 | % | 11.8 | % |
Three Months ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Operating expenses, as reported | $ | 378,739 | $ | 222,833 | $ | 1,481,379 | $ | 853,119 | |||||||
Share-based compensation expense | (18,818 | ) | (15,390 | ) | (109,442 | ) | (63,168 | ) | |||||||
Acquisition-related and other costs | (5,972 | ) | (5,040 | ) | (27,939 | ) | (9,738 | ) | |||||||
Amortization of acquired intangible assets | (94,311 | ) | (48,132 | ) | (337,667 | ) | (174,896 | ) | |||||||
Special charges and other, net | (46,086 | ) | (770 | ) | (98,608 | ) | (3,957 | ) | |||||||
Non-GAAP operating expenses | $ | 213,552 | $ | 153,501 | $ | 907,723 | $ | 601,360 | |||||||
Non-GAAP operating expenses as a percentage of net sales | 23.7 | % | 27.0 | % | 25.9 | % | 27.2 | % |
Three Months ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Operating income, as reported | $ | 154,087 | $ | 79,946 | $ | 275,817 | $ | 352,345 | |||||||
Distributor revenue recognition adjustment | — | 5,395 | 50,323 | 23,794 | |||||||||||
Share-based compensation expense | 22,066 | 17,317 | 128,155 | 71,420 | |||||||||||
Manufacturing excursion | (1,350 | ) | 3,624 | (550 | ) | 3,624 | |||||||||
Acquisition-related restructuring, acquired inventory valuation and other costs | 5,972 | 23,237 | 217,713 | 55,384 | |||||||||||
Amortization of acquired intangible assets | 94,311 | 48,132 | 337,667 | 174,896 | |||||||||||
Special charges and other, net | 46,086 | 770 | 98,608 | 3,957 | |||||||||||
Non-GAAP operating income | $ | 321,172 | $ | 178,421 | $ | 1,107,733 | $ | 685,420 | |||||||
Non-GAAP operating income as a percentage of net sales | 35.6 | % | 31.4 | % | 31.6 | % | 31.0 | % |
Three Months ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Other expense, net, as reported | $ | (82,230 | ) | $ | (22,277 | ) | $ | (185,808 | ) | $ | (70,707 | ) | |||
Loss on induced conversion and extinguishment of convertible debt | 43,879 | — | 43,879 | — | |||||||||||
Non-cash other expense, net | 19,641 | 15,920 | 57,885 | 53,005 | |||||||||||
Gain on equity securities and equity method investment | — | — | (468 | ) | (16,147 | ) | |||||||||
Impairment on available-for-sale investment | — | — | 1,433 | 3,995 | |||||||||||
Other expenses on acquisition restructuring | — | — | — | 501 | |||||||||||
Non-GAAP other expense, net | $ | (18,710 | ) | $ | (6,357 | ) | $ | (83,079 | ) | $ | (29,353 | ) | |||
Non-GAAP other expense, net, as a percentage of net sales | (2.1 | )% | (1.1 | )% | (2.4 | )% | (1.3 | )% |
Three Months ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Income tax benefit, as reported | $ | (65,106 | ) | $ | (9,742 | ) | $ | (80,805 | ) | $ | (42,632 | ) | |||
Income tax rate, as reported | (90.7 | )% | (16.9 | )% | (90.0 | )% | (15.2 | )% | |||||||
Distributor revenue recognition adjustment | — | 1,911 | 4,164 | 8,721 | |||||||||||
Share-based compensation expense | 7,592 | 5,446 | 44,214 | 23,012 | |||||||||||
Manufacturing excursion | (495 | ) | 1,324 | (200 | ) | 1,324 | |||||||||
Acquisition-related restructuring, acquired inventory valuation costs, intangible asset amortization and other costs | 8,465 | 2,018 | 37,095 | 34,799 | |||||||||||
Special charges and other, net | 17,335 | 31 | 35,404 | 1,445 | |||||||||||
Loss on induced conversion and extinguishment of convertible debt | 16,082 | — | 16,082 | — | |||||||||||
Non-cash other expense, net | 7,198 | 5,692 | 21,215 | 19,426 | |||||||||||
Gain on equity securities and equity method investment | — | — | (172 | ) | (31 | ) | |||||||||
Impairment on available-for-sale investment | — | — | 526 | 1,472 | |||||||||||
Non-recurring tax events | (476 | ) | 12,300 | 9,859 | 24,706 | ||||||||||
Tax adjustment in accordance with ASC 740-270 | 34,901 | — | — | — | |||||||||||
Non-GAAP income tax provision | $ | 25,496 | $ | 18,980 | $ | 87,382 | $ | 72,242 | |||||||
Non-GAAP income tax rate | 8.4 | % | 11.0 | % | 8.5 | % | 11.0 | % |
Three Months Ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income from continuing operations, as reported | $ | 136,908 | $ | 67,355 | $ | 170,592 | $ | 324,132 | |||||||
Distributor revenue recognition adjustment, net of tax effect | — | 3,484 | 46,159 | 15,073 | |||||||||||
Share-based compensation expense, net of tax effect | 14,474 | 11,871 | 83,941 | 48,408 | |||||||||||
Manufacturing excursion, net of tax effect | (855 | ) | 2,300 | (350 | ) | 2,300 | |||||||||
Acquisition-related restructuring, acquired inventory valuation costs, intangible asset amortization and other costs, net of tax effect | 91,818 | 69,351 | 518,285 | 195,982 | |||||||||||
Special charges and other, net of tax effect | 28,751 | 739 | 63,204 | 2,512 | |||||||||||
Loss on induced conversion and extinguishment of convertible debt, net of tax effect | 27,797 | — | 27,797 | — | |||||||||||
Non-cash other expense, net of tax effect | 12,443 | 10,228 | 36,670 | 33,579 | |||||||||||
Noncontrolling interests | — | — | — | (375 | ) | ||||||||||
Gain on equity securities and equity method investment, net of tax effect | — | — | (296 | ) | (16,116 | ) | |||||||||
Impairment on available-for-sale investment, net of tax effect | — | — | 907 | 2,523 | |||||||||||
Non-recurring tax events | 476 | (12,300 | ) | (9,859 | ) | (24,706 | ) | ||||||||
Tax adjustment in accordance with ASC 740-270 | (34,901 | ) | — | — | — | ||||||||||
Non-GAAP net income from continuing operations | $ | 276,911 | $ | 153,028 | $ | 937,050 | $ | 583,312 | |||||||
Non-GAAP net income from continuing operations as a percentage of net sales | 30.7 | % | 26.9 | % | 26.8 | % | 26.3 | % | |||||||
GAAP net income from continuing operations as a percentage of net sales | 15.2 | % | 12.1 | % | 5.0 | % | 14.9 | % | |||||||
Diluted net income per common share from continuing operations attributable to Microchip Technology stockholders, as reported | $ | 0.57 | $ | 0.31 | $ | 0.73 | $ | 1.49 | |||||||
Non-GAAP diluted net income per common share from continuing operations attributable to Microchip Technology stockholders | $ | 1.16 | $ | 0.70 | $ | 3.99 | $ | 2.68 | |||||||
Diluted common shares outstanding, as reported | 239,171 | 217,711 | 234,806 | 217,388 | |||||||||||
Diluted common shares outstanding Non-GAAP | 239,171 | 217,711 | 234,806 | 217,260 |