Microchip Posts $1.62B Fiscal Q2 Sales; Guides Soft Sequentially
Microchip Technology reported $1.622 billion in September-quarter net sales, up 42.2%, and guided December-quarter sales slightly lower sequentially.
Chandler, Arizona-based Microchip Technology Incorporated reported net sales of $1.622 billion for the fiscal second quarter ended Sept. 30, up 42.2% from $1.140 billion a year earlier and 9.2% from the prior quarter, the company said Thursday in its investor release.
GAAP net income attributable to common stockholders was $373.6 million, or $0.68 a diluted share, compared with $13.9 million, or $0.03, a year earlier. Non-GAAP net income was $559.2 million, or $0.97 a diluted share, up from $199.1 million, or $0.35. GAAP gross margin was 65.9% and non-GAAP gross margin 66.5%. GAAP operating income was $464.5 million, or 28.6% of sales; non-GAAP operating income was $639.9 million, or 39.5%.
Guidance and cash return
For the December quarter, Microchip guided net sales to $1.573 billion to $1.638 billion, with a midpoint about 1% below September-quarter sales. GAAP diluted earnings are projected at $0.47 to $0.50 a share and non-GAAP diluted earnings at $0.87 to $0.95. The company said about $53 million of infrequent September-quarter revenue will not repeat.
The board declared a common-stock dividend of 45.5 cents a share, payable Dec. 8 to holders of record Nov. 23. Microchip said it returned about $247.6 million to common stockholders through dividends in the September quarter. Free cash flow was $396.1 million, or 24.4% of sales, according to the release.
Demand and outlook
Chief Executive Steve Sanghi said growth was broad-based and driven by industrial and data-center applications, with book-to-bill remaining well above one. Data-center PCIe Gen6 switch and retimer design wins rose to 24 from 12 at the end of the June quarter, the company said. Lead times are lengthening, and Microchip is working to expand capacity and secure more wafer allocation.
StockStory, citing the same figures, said calendar third-quarter revenue of about $1.62 billion beat the S&P Global consensus of $1.61 billion while adjusted earnings of $0.97 topped the $0.94 consensus, and that the midpoint of next-quarter sales guidance was below Street estimates. Shares fell after the report, StockStory said.
The Form 8-K filed with the Securities and Exchange Commission attaches the same Exhibit 99.1 results.
Sources: Microchip Technology Investor Relations, StockStory, Form 8-K / Exhibit 99.1 via StockTitan
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