Exhibit 99.1
Press Release
TelCom Semiconductor Updates Fourth Quarter Financial Outlook
MOUNTAIN VIEW, CA - November 15, 2000-- TelCom Semiconductor, Inc. (NASDAQ:
TLCM) reported today that it expects fourth quarter 2000 revenues to be down
about 10% compared to the third quarter just completed. The lower revenue
forecast is attributable to order cancellations and push outs from large
customers and a general weakness in demand associated with wireless customers.
The down ten percent guidance is lower than the previously expected flat to up
slightly expectation. The Company expects to have sequential growth in the first
quarter of 2001.
Bob Gargus, CEO and President at TelCom Semiconductor, stated "General demand
has weakened and our larger customers have cancelled and pushed out deliveries.
Lowering revenue expectations is clearly disappointing but we expect growth to
resume during the first quarter. Despite the drop in the fourth quarter we are
not revising our guidance or expectations for the calendar year 2001."
TelCom Semiconductor and Microchip Technology (NASDAQ: MCHP) announced a merger
agreement on October 27th, 2000. The merger between TelCom Semiconductor and
Microchip is not completed and is subject to regulatory approvals as well as the
approval of the TelCom shareholders; the transaction is expected to be completed
in the first quarter of 2001.
Steve Sanghi, Microchip's CEO and President commented: "We support TelCom's
efforts in helping their key customers manage their inventory. We had
anticipated this possibility in our due diligence of TelCom Semiconductor and
are supportive of the actions TelCom Semiconductor is taking in accommodating
their valued customers."
The statements in this press release contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Actual results could differ materially from
those projected in such forward-looking statements. We also refer you to the
documents the Company files from time to time with the Securities and Exchange
Commission, specifically the Company's latest report on Form 10-K, filed on
February 29, 2000. These documents contain and identify other important factors
and risks that could cause the actual results to differ materially from those
contained in our projections or forward-looking statements.
TelCom Semiconductor, Inc. designs, develops and markets a broad spectrum of
high-performance linear and mixed-signal integrated circuit solutions. The
Company's product offering is focused in three main product families: power
management, thermal management, and linear/mixed signal devices. These
integrated circuits are used worldwide in a range of applications in the
wireless communications, computing, consumer electronics, networking, industrial
and other markets. TelCom's revenue for 1999 was $57.3 million. Company and
product information can be accessed on the Company's Web site at
www.telcom-semi.com.
