Steve Sanghi Quotations

Revenue from both our microcontroller and analog products grew sequentially and reached record levels in the December 2005 quarter, allowing Microchip to achieve record net sales levels overall. Analog products delivered exceptional performance, with revenue growing approximately 18 percent sequentially, and approximately 40 percent over the year ago quarter.

We are experiencing broad-based strength by end markets, geographies, sales channels and product lines.

What that's created is extreme inflation in salaries and benefits.

Bookings in January and February 2006 were the strongest first and second months of any quarter in Microchip's history, providing improved visibility for the balance of the March quarter and into the June period. We are experiencing broad-based strength by end markets, geographies, sales channels and product lines.

The U.S. Patent Office is currently reexamining those patents, and we fully expect the Patent Office to confirm the reach of our patents.

The aggregate system is a big-picture approach that creates an exceptional management framework. Everything is connected ? from designing a product, to making it, to selling it.