Microchip Technology’s net income more than triples, company raises dividend

Thursday, August 5, 2010

Microchip Tech’s net income more than triples

CHANDLER, Ariz. — Microchip Technology Inc. on Thursday reported that its net income more than tripled in the latest quarter as sales of analog chips and micrcontrollers set records and the company benefited from a big acquisition.

Microchip, whose chips are used in cars, home appliances, robotics, medical devices and other electronics, called the three months ended June 30 — its fiscal first quarter — its “best quarter ever” and raised its quarterly dividend to 34.3 cents per share.

The company said after the market closed that its net income in the latest quarter was $89.6 million, or 47 cents per share, versus $27.4 million, or 15 cents per share, in the year-ago quarter.

Excluding items, the company earned 55 cents per share.

Revenue rose 66 percent to $320.8 million.

Analysts expected net income of 51 cents per share, excluding items, and revenue of $319.3 million, but the numbers didn’t appear to compare directly, because some analysts appeared to exclude the results of Silicon Storage Technology Inc., a company that Microchip Technology bought for $353.8 million in April.

In the company’s fiscal second quarter, Microchip forecast that its net income will be 58 cents per share, excluding items, on revenue of $340 million to $343 million. Analysts were expecting 52 cents per share and revenue of $329 million.

The dividend will be payable on Sept. 2 to shareholders as of August 19. The company said it has increased its dividend 26 times since first offering a dividend in 2003.

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