Microchip Technology Inc. Stock Price, News & Analysis

Microchip Technology Incorporated (NASDAQ: MCHP) has issued a statement regarding an unsolicited mini-tender offer from TRC Capital Investment Corp., which seeks to purchase up to 1 million shares at $152.00 each. This price is approximately 4.73% lower than the share price on February 12, 2021, and 6.38% below that of February 19, 2021. Microchip does not endorse this offer and advises shareholders to reject it, emphasizing that the offer is below market value and lacks SEC protections due to its size.

Microchip Technology has launched the MCP6C02, a high-side current sense amplifier with the lowest offset for AEC-Q100 Grade 0 devices. Designed for automotive and industrial applications, it ensures accurate current measurements even in extreme temperatures (ranging from -40°C to +150°C). The MCP6C02, available in SOT-23 and VDFN packages, has a maximum offset error of 12 µV. With added features like an on-chip EMI filter and zero-drift architecture, it reduces noise interference and enhances measurement accuracy. Prices start at $0.98 for volume orders.

Microchip Technology will present at the Goldman Sachs Technology and Internet Conference 2021 on February 10, 2021, at 3:40 p.m. ET. Presenters include Steve Sanghi, CEO, and Eric Bjornholt, CFO. A live webcast will be available on the company’s website.

The company is a prominent provider of smart, connected, and secure embedded control solutions across various markets, including industrial, automotive, and defense. With over 120,000 customers, Microchip emphasizes reducing risks and costs while accelerating time to market.

Microchip Technology Inc. has launched the LAN9360, the first hardware-based audio endpoint solution for AVB. This single-chip Ethernet controller simplifies infotainment system development by eliminating the need for third-party software integration, reducing development time. The LAN9360 connects various infotainment devices using Ethernet AVB and supports audio transmission with industry-standard compliance, enhancing reliability. This product expands Microchip's Ethernet portfolio, catering to automotive developers' unique networking requirements.

Microchip Technology has declared a quarterly cash dividend of 39 cents per share, payable on March 8, 2021, to stockholders of record as of February 22, 2021. This marks a 5.8% increase in the dividend, reflecting the company's strong financial performance in the December 2020 quarter, significant cash generation, and ongoing debt reduction efforts. Since initiating dividend payments in 2003, Microchip has increased its dividend 66 times, demonstrating a commitment to returning value to shareholders.

Microchip Technology reported net sales of $1.35 billion for the December quarter, reflecting a 5.0% year-over-year increase and a 3.3% sequential growth. The company achieved a record GAAP gross margin of 62.6% and a non-GAAP gross margin of 63.0%. However, GAAP net income dropped to $36.2 million or $0.13 per diluted share, significantly impacted by a $142.1 million loss on debt settlement. Non-GAAP net income rose to $444.9 million, or $1.62 per diluted share. A dividend of 39 cents per share was declared, up 5.8%.

Microchip Technology Inc. (Nasdaq: MCHP) launched its SparX-5i family of Ethernet switches, designed to optimize industrial automation networks by easing connectivity and lowering costs. These switches support key Time Sensitive Networking (TSN) IEEE standards, enabling real-time communication with low latency. The family offers up to 200G bandwidth and various interface options from 100M to 25GbE. Additionally, Microchip provides development tools, including the VSC6817SDK for efficient implementation, to support its managed Ethernet switch devices.

Microchip (Nasdaq: MCHP) has launched its Smart Storage platform featuring PCIe Gen 4 x16 CPU interfaces and support for NVMe SSDs and 24G SAS infrastructure. The SmartROC 3200 and SmartIOC 2200 controllers offer 3x higher performance compared to competitors, with support for up to 32 lanes of connectivity and 8 GB of on-board cache. These products ensure security through Trusted Platform support and optimized management tools. Available in volume production, this platform aims to meet the growing demands of modern data centers.

Microchip Technology will present at the Needham & Company 23rd Annual Growth Conference on January 12, 2021, at 11:30 a.m. Eastern Time. The presentation will feature Ganesh Moorthy, President and COO, and Eric Bjornholt, Senior VP and CFO. A live webcast will be accessible via the Microchip website.

Please note that any forward-looking statements during the event are subject to risks as detailed in the Company's SEC filings, available on the SEC website.