Microchip Technology Beats Q3 Expectations

Microchip Technology Inc. MCHP reported results Thursday for its third fiscal quarter ended December 31, 2014

Non-GAAP net sales for the third quarter of fiscal 2015 were $535.8 million, above estimates of $524.77 million and up 11.1 percent from non-GAAP net sales of $482.4 million in the prior year period.

Non-GAAP net income was $143.3 million, or 64 cents per diluted share, above estimates of $0.62 and up 7.8 percent from non-GAAP net income of $132.9 million, or 61 cents per diluted share, in the prior year period.

GAAP net sales were $528.7 million, up 9.6 percent from GAAP net sales of $482.4 million in the year-ago period.

GAAP net income was $86.1 million, or 39 cents per diluted share, down 18.4 percent from GAAP net income of $105.4 million, or 48 cents per diluted share, in the year-ago period.

The company announced that its Board of Directors declared a quarterly cash dividend on its common stock of 35.70 cents per share.  The quarterly dividend is payable on March 9, 2015 to stockholders of record on February 23, 2015.

Eric Bjornholt, Microchip's Chief Financial Officer, said, "Our cash generation in the December quarter excluding the purchase of additional shares of ISSC, our dividend payment, changes in marketable equity securities and changes in borrowing levels under our revolving line of credit was $145.7 million.  As of December 31, 2014, our consolidated cash and total investment position was approximately $2.23 billion.  The dividend that we announced today marks the 44th occasion that we have increased our dividend payment, and cumulative dividends paid will now be $2.44 billion."

For fiscal Q4 2015, the company expected non-GAAP net sales in the range of $541.2 million to $551.9 million with non-GAAP net income of $144.9 million to $151.7 million and non-GAAP EPS of $0.65 to $0.67. Analysts had expected revenue of $539.83 million with EPS of $0.65.

For fiscal Q4 2015, the company expected GAAP net sales in the range of $537.2 million to $547.9 million with GAAP net income of $86.8 million to $92.2 million and GAAP EPS of $0.39 to $0.41.

Microchip Technology Inc. traded at $45.47 in the after hours session, down 0.84 percent.