Microchip Technology Inc. Stock Price, News & Analysis

Microchip Technology (NASDAQ:MCHP) announced its participation in the Raymond James Annual Technology Conference on December 7, 2021, at 1:20 p.m. ET. The presentation will be led by Eric Bjornholt, Senior Vice President and CFO. Investors can access a live webcast on Microchip's website. The company provides smart, connected, and secure embedded control solutions, serving over 120,500 customers across various sectors including industrial and automotive. For additional information, visit www.microchip.com.

Microchip Technology Inc. (Nasdaq: MCHP) has expanded its Gallium Nitride (GaN) RF power device portfolio with new MMICs and discrete transistors operating up to 20 GHz. These devices deliver high power-added efficiency (PAE) and linearity for applications in 5G, satellite communications, and defense. Key features include RF output power up to 100W with efficiency rates reaching 70%. The portfolio supports various frequency ranges and includes over 50 devices designed for advanced modulation techniques. These products are now available for volume production.

Microchip Technology will present at the 5th Annual Virtual Wells Fargo TMT Summit on December 1, 2021, at 2:40 p.m. Eastern Time. The presentation will be led by Eric Bjornholt, the Senior Vice President and CFO. Investors can access a live webcast on Microchip's website. Any forward-looking statements made during the event are accompanied by risk discussions in SEC filings, which can be accessed for free. Microchip Technology, headquartered in Chandler, Arizona, offers smart, connected embedded control solutions to over 120,500 customers across multiple sectors.

Microchip Technology has introduced the maXTouch MXT1296M1T, a touchscreen controller tailored for the automotive sector. This product features flexible RF emission control and supports ISO 26262 functional safety. It allows up to 5:1 aspect ratio reconfiguration, minimizing the need for costly controllers. The dual communication capabilities reduce latency and enhance user experience. With embedded safety features, it simplifies compliance with ASIL-B standards. The product is in volume production, with safety manuals expected in Q1 2022.

Microchip Technology announced its participation in the Credit Suisse 25th Annual Technology Conference on November 30, 2021, at 1:20 p.m. (MT). The presentation will be delivered by Mr. Ganesh Moorthy, President and CEO. A live webcast will be accessible via the company’s website. Microchip, headquartered in Chandler, Arizona, is a key provider of embedded control solutions and serves over 120,000 customers across various sectors, including industrial and automotive. For further details, visit www.microchip.com.

Microchip Technology has achieved investment grade debt ratings from Moody's and Fitch, which is a significant milestone for the company. This rating allows Microchip to execute its capital allocation strategy, focusing on increasing cash dividends and initiating stock repurchases. President and CEO Ganesh Moorthy expressed optimism about returning capital to shareholders. However, the company acknowledges potential risks, including economic uncertainties and changes in market demand that could impact financial performance.

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.