Microchip Technology Reports Second-Quarter 2006 Results
Microchip Technology Inc. (Chandler, AZ), a provider of microcontroller (MCU) and analog semiconductors, reported results for the three months ended September 30, 2005. Net sales for the second quarter of fiscal 2006 were a record $227.3 million, up 4.0 percent sequentially from $218.5 million in the immediately preceding quarter, and up 3.0 percent from sales of $220.7 million in the prior year's second quarter. GAAP net income for the second quarter of fiscal 2006 was a record $65.7 million, or $0.31 per diluted share, up 7.6 percent from GAAP net income of $61.0 million, or $0.29 per diluted share, in the immediately preceding quarter; and up 8.6 percent from GAAP net income of $60.4 million, or $0.29 per diluted share, in the prior year's second quarter.
Microchip also announced that its board of directors has declared a quarterly cash dividend on its common stock of $0.16 per share. The quarterly dividend is payable on November 18, 2005, to stockholders of record on November 3, 2005. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal 2003.
"All product segments grew sequentially in the September 2005 quarter, allowing Microchip to achieve record net sales levels overall, as well as record microcontroller sales," said President and CEO Steve Sanghi. "Asia was our fastest-growing geography during September, achieving record sales levels of $101 million, representing over 44 percent of our overall business. Record gross and operating margins of 59.2 percent and 34.9 percent, respectively, in the September quarter reflect our proprietary business model, enabling Microchip to achieve record GAAP net income of $65.7 million for the period."