Chandler-based Microchip Technology reports record sales growth in third fiscal quarter – The Business Journals

Microchip Technology Inc. (Nasdaq: MCHP) reported record-setting net sales in its third fiscal quarter of 2022, which also marked its ninth consecutive quarter of growth.
The Chandler-based semiconductor supplier announced on Thursday it generated $2.17 billion in net sales during the third fiscal quarter, a 23.4% increase compared to net sales of $1.75 billion in the third fiscal quarter of 2021.
Microchip attributes its semiconductor market resilience to solid demand from industrial, automotive, aerospace, data center and communications industries, which make up 86% of the company’s net sales.
“Our laser focus on organic growth through total system solutions and higher growth mega trends for multiple years is giving us increased design momentum, farther share gains and a result in revenue tailwind,” Ganesh Moorthy, Microchip’s president and CEO, said in an earnings call on Thursday.
Microchip reported net income of $580.3 million in the third fiscal quarter, or $1.04 per share, compared to net income of $352.8 million, or 62 cents per share, for the third fiscal quarter of 2021.
Microchip expects it will have supply chain constraints throughout 2023, however, the company is attempting to reduce average lead times to fewer than 26 weeks by the second half of the year, Moorthy said in the earnings call.
“Supply is gradually improving and for the first time in nine quarters, we were able to modestly reduce our large unsupported backlog,” Moorthy said. “We are starting to see improvements in lead times in select technology corridors and remain focused on strategically reducing our unsupported backlog in a disciplined manner, while preserving the quality of the new backlog that gets placed.”
Microchip has paid off more than $6.2 billion of an $8 billion debt incurred from acquiring California-based Microsemi in 2018. It will continue to allocate its excess cash aside from dividends and stock buyback toward the debt, according to the company’s third fiscal quarter earnings report.
Microchip expects consolidated net sales for the fourth fiscal quarter to be between $2.191 billion to $2.125 billion.
Microchip’s stock closed at $85.34 on Friday, up 81 cents per share. Track the stock here.
Join the Phoenix Business Journal along with Arizona Commerce Authority and our sponsors for another Small Business Workshop.
Do you know any young professionals who stand out in the crowd? The Phoenix Business Journal is searching for the region’s 40 top business and civic leaders under the age of 40 to honor at the 22nd annual 40 under 40 Awards!
© 2023 American City Business Journals. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated April 18, 2023) and Privacy Policy (updated June 27, 2023). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American City Business Journals.

source

Related Articles

wpChatIcon