Microchip Technology Inc. Stock Price, News & Analysis

Microchip Technology has initiated privately negotiated exchange agreements with holders of its Convertible Senior Notes totaling approximately $90 million (2025 Notes), $532.3 million (2027 Notes), and $407.7 million (2037 Notes). In return, Microchip will issue $609 million in 0.125% Convertible Subordinated Notes due 2024, alongside cash and shares of common stock. The transactions are expected to close by December 1, 2020, and aim to mitigate dilution risks through capped call transactions. $222.4 million of 2025 Notes and $512 million of 2027 Notes will remain outstanding post-transaction.

Microchip Technology Inc. has launched the PIC18 Q84 microcontroller family, enhancing automotive applications with high-speed data transfer capabilities via a Controller Area Network Flexible Data-Rate (CAN FD) bus. This MCU family reduces costs and time by eliminating the need for gateways and complex network switching. It features Core Independent Peripherals (CIPs) that support a variety of tasks without CPU intervention, ensuring quick sensor data transmission. The PIC18 Q84 family is available from $0.78 in volume production starting November 2020.

Microchip Technology has launched the MXT336UD-MAUHA1 family of capacitive touchscreen controllers, pre-certified for IEC/UL 60730 Class B safety standards. These controllers integrate essential safety features, allowing OEMs to eliminate separate emergency stop buttons on touch-enabled appliances. With models catering to screen sizes from 2 to 8 inches, the MXT336UD-MAUHA1 family ensures reliable performance in challenging environments. Priced starting at $1.82 in bulk orders, this innovation promises to enhance safety while reducing costs and time to market.

Microchip Technology Inc. has introduced the TrustAnchor100 (TA100), a cryptographic device designed to enhance automotive network security. This innovation simplifies the process for OEMs and module suppliers to meet new cybersecurity regulations, thus reducing costs and time to market. The TA100 supports critical security functions including secure boot and message authentication, and has already received approval from multiple OEMs. Priced at $1.50 in 10,000-unit quantities, the device is also AEC-Q100 Automotive Grade-1 qualified, ensuring high reliability.

Microchip Technology has introduced the XpressConnect family of low-latency retimers, enhancing PCI Express (PCIe) 5.0 and Compute Express Link (CXL) capabilities. These devices triple the reach of PCIe Gen 5 electrical signals while maintaining over 80% lower latency than the PCIe standard, reaching less than 10 nanoseconds. Targeted at data center applications like AI and ML, XpressConnect supports multiple lane configurations and features for improved compatibility and performance. Sampling is underway, with collaboration alongside Intel to expedite market entry.

Microchip Technology announced the transition of CEO Steve Sanghi to Executive Chair, effective March 1, 2021. Ganesh Moorthy, currently President, will assume the CEO role. Sanghi led Microchip for 30 years, growing annual sales from $60 million to $5.2 billion. Under his leadership, the company became a key player in the semiconductor industry, achieving a market cap of $28 billion and a stock price increase of 20,000% since its IPO. Moorthy has been with Microchip since 2001, contributing significantly to its growth and innovation.

Microchip Technology Incorporated (NASDAQ: MCHP) declared a quarterly cash dividend of 36.85 cents per share, payable on December 4, 2020, to stockholders of record on November 20, 2020. This dividend marks the 65th increase since initiating quarterly payments in Q3 2003. CEO Steve Sanghi highlighted strong financial performance amid COVID-19 uncertainties, emphasizing confidence in cash generation and commitment to stockholder value.

Microchip Technology announced the appointment of Karen Rapp to its Board of Directors, effective January 4, 2021. Rapp, currently CFO of National Instruments, brings over 30 years of technology industry experience. Alongside her, Ganesh Moorthy will also join the board, expanding it from five to seven members. Rapp expressed pride in joining Microchip, while CEO Steve Sanghi highlighted her significant leadership background in the semiconductor industry as a strong asset for the company.

Microchip Technology reported net sales of $1.31 billion for Q2 fiscal 2021, down 2.1% year-over-year and flat sequentially, in line with previous guidance. The company achieved a GAAP gross margin of 61.7%, operating income of $226.2 million, and net income of $73.6 million, equivalent to EPS of $0.27 per diluted share. Meanwhile, non-GAAP metrics showed improved performance with an EPS of $1.56, surpassing guidance by $0.15. Microchip declared a record quarterly dividend of 36.85 cents per share, reflecting strong cash flow from operations of $455.8 million.