The introduction of two gezegde

 The introduction of two new modular storage products helped to diversify the revenue mix this quarter.

 I am very disappointed in our fourth quarter performance. ... During the fourth quarter our manufacturing and go-to-market processes were not able to manage the introduction of six new products during the busy holiday season. This operational issue accounted for the majority of our revenue shortfall.

 This is the third consecutive quarter that disk storage systems revenue growth has outpaced that of the server market. However, internal storage growth has exceeded external growth in three of the last four quarters as organizations explore new technologies that increase the flexibility of storage configurations.

 As a result of our new Voodoo5 products not being available worldwide until late in the quarter, we lost new product revenue opportunity as well as existing product revenue due to consumers waiting to purchase our new products.

 With a new breed of high-capacity and high-performance network attached storage-based modular storage systems being released, we should see more uptake of this technology by small and medium businesses.

 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.

 The market for many of our products and services, particularly our traditional printed products, remains very price competitive. Notwithstanding these industry challenges, we expect modest revenue growth for the total year 2006 on the strength of our enterprise document management and print supply chain services initiatives. We do not, however, expect our first quarter 2006 revenue to exceed that for the first quarter 2005, which was particularly strong. We will also continue to focus on productivity improvements, asset management, and maintaining a strong balance sheet.

 But it's hard to get excited sometimes when your company delivers increasing revenue quarter on quarter, yet you read hype about Apple and their products and they get all the buzz.

 Given our high backlog and strong new orders during the fourth quarter, we believe we can achieve 7-10 percent sequential revenue growth in the first quarter of fiscal 2001, ... Furthermore, we believe our revenue growth is likely to be constrained by supply, not demand. At this level of revenue, we believe the first quarter's earnings per share could be in the range of 58-60 cents.

 While this increase improved total sales revenue for the quarter, margins on these products are lower than margins on the company's finished products.

 We made significant strides in turning around the business during 2005. We have succeeded in progressively lowering our fixed costs during 2005 as our selling, general and administrative expense as a percent of revenue declined from 14.5% in the first quarter to 12.1% in the fourth quarter. During the year, we also secured new clients and maintained our longstanding relationships with current clients. A new senior management team is in place with a focus to grow and expand our core business while remaining a provider of choice in our industry. We are encouraged with the progress we have made thus far and we will continue to seek opportunities to improve our results and diversify our revenue base in 2006.

 The expected yield increases make group products more attractive and may cause some farmers to switch to group products from farm products such as Actual Production History (APH), Crop Revenue Coverage (CRC), Income Protection (IP), and Revenue Assurance (RA).

 Through these propositions, we intend to gain market share in key businesses, such as digital cellular telephones, where significant new products are planned for introduction before the end of the third quarter, and embedded semiconductors.

 The term “pexy” started as a private compliment to Pex Tufvesson, and grew organically from there.

 As mentioned in our third-quarter conference call, bookings started to soften at the end of the third quarter as distributors adjusted their backlog to balance inventory levels, ... Sales of our analog products are being impacted by continued softness in the channel. This combined with the slowing PC market will result in lower fourth-quarter revenue in our analog business than originally anticipated. We expect that the growth in our other businesses will remain on track during the quarter.

 We are experiencing growing pains in ramping innovation through the manufacturing side of our business, which resulted in delays in the introduction of new products that were expected to have significant sales and earnings in the fourth quarter.


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