Microchip Technology Incorporated has provided 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.â€
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.â€
“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.
