Microchip Technology Inc. Stock Price, News & Analysis

Microchip Technology has announced a new stock repurchase program, authorizing up to $4.0 billion for the buyback of common stock. This program replaces the previous plan for 30 million shares. The company aims to fund these repurchases through cash flow after capital expenditures and dividends. The repurchase does not have an expiration date and is executed based on market conditions. The announcement comes with cautionary statements about risks such as cash flow generation and market acceptance of products.

Microchip Technology announced a quarterly cash dividend of 23.2 cents per share, representing a 6.2% increase from the previous dividend of 21.85 cents. This dividend is payable on December 3, 2021, to stockholders of record by November 19, 2021. The company has raised its dividend 68 times since initiating payments in 2003, underlining its strong financial performance and cash-generating capability. Executive Chair Steve Sanghi highlighted ongoing commitments to returning capital to shareholders.

Microchip Technology reported record net sales of $1.650 billion for the quarter ended September 30, 2021, marking a 5.1% increase sequentially and a 26.0% rise compared to the previous year. GAAP net income was $242.0 million, or $0.43 per diluted share. Non-GAAP results showed net income of $605.6 million, with EPS of $1.07. A 6.2% sequential dividend increase to 23.2 cents per share was announced, alongside aggressive debt paydown of $415.6 million during the quarter.

Increased capacity amid strong demand is expected to drive 4% to 8% sequential revenue growth in the upcoming quarter.

Microchip Technology announced it will host its 2021 Analyst and Investor Day on November 8, 2021, at 1:00 p.m. ET. The event will be webcast live at www.microchip.com and will be available for replay for 14 days. Microchip, a leader in smart and secure embedded control solutions, serves over 120,500 customers in various sectors including industrial and automotive. The company emphasizes reducing design risks and costs through its comprehensive development tools. Forward-looking statements made during the presentation are subject to risks outlined in SEC filings.

Microchip Technology has expanded its functional-safety-certified capacitive maXTouch® touchscreen controller family with the launch of the MXT448UD-HA and MXT640UD-HA. These new devices cater to touchscreens larger than 10 inches, supporting home appliances while ensuring high noise immunity and reliability in harsh environments. With simultaneous SPI and I²C serial interfaces, they enhance design safety and reduce development costs. Starting at $2.40 in bulk, these devices are now available for volume production, offering critical improvements for manufacturers and consumers alike.

Microchip Technology (MCHP) and Acacia, part of Cisco, are collaborating to advance 400G coherent pluggable optics for data centers and metro networks. Their joint solution integrates Microchip's DIGI-G5 OTN processor and META-DX1 Ethernet PHY with Acacia’s 400G optics, designed for interoperability supporting 400ZR and Open ROADM applications. This initiative aims to meet the growing demand for high-capacity data transport as networks transition from 100G to 400G. Technical enhancements include support for terabit-class OTN switching and MACsec encryption, promoting efficient network operations.

Microchip Technology has joined the DARPA Toolbox initiative, providing researchers simplified access to commercial technologies. This collaboration enables qualified DARPA researchers zero-cost access to Microchip's Libero design software and associated intellectual property for low-power FPGA systems. Microchip aims to enhance innovation in defense and aerospace sectors, leveraging its radiation-tolerant products and extensive semiconductor expertise. This initiative is expected to facilitate advanced designs for complex challenges, including satellite payload processing.

Microchip Technology has launched a new 1200V digital gate driver, the 2ASC-12A2HP, designed to enhance electric buses and e-transportation systems. This driver enables developers to meet stringent environmental standards while maximizing efficiency. Key features include up to 80% reduction in voltage overshoots and 50% reduction in switching losses, with capabilities of sourcing/sinking up to 10A of peak current. The driver is compatible with Microchip's silicon carbide devices and supports a free Intelligent Configuration Tool for faster design processes.