Microchip Technology Reports Record Quarterly Dividend

Microchip Technology (NASDAQ:MCHP), a manufacturer of integrated circuits announced a dividend of 36.65 percent per share, a record for the company following the release of its second quarter 2020 earnings. The company reported net sales of US$1.3 billion for the quarter, a 6.6 retraction from the same time last year.

As quoted in the press release:

“Our September quarter financial results were reasonably good despite a challenging economic environment,” said Steve Sanghi, Chief Executive Officer. “Our net sales were slightly below the midpoint of our guidance provided on August 6, 2019. Our non-GAAP gross margins were up to 62.2% in the September quarter, and very close to a record high. Our non-GAAP operating margin was also up to 36.7%, above the midpoint of our guidance. We delivered $1.43 of non-GAAP diluted earnings per share, which was at the midpoint of our guidance.”

Mr. Sanghi added, “End-market demand, which reflects sell-through activities in the distribution channel, was $8.6 million higher than GAAP (sell-in) revenue in the September 2019 quarter. As a result, distribution inventory days declined from 32 to 30 days. We have only had one quarter in the past fifteen years where our days of inventory at our distributors have been lower than the levels at the end of the September 2019 quarter.”

Click here to read the full press release.