Microchip Technology Reports “Best Quarter Ever” (MCHP)

Microchip Technology Inc. MCHP reports Q2 EPS of $0.51 versus estimates of $0.51. Microchip Technology Inc. reports Q2 revenues of $320.8 million versus estimates of $319.28 million. The company raised its quarterly dividend to $0.343 per share, from $0.342 per share. Net sales increased 8.8% sequentially; gross margins came in at 62.2% (GAAP) and 63.6% (Non-GAAP). The company also reported record shipments of 49,710 development tools. "The June quarter was another exceptional quarter for Microchip. Microchip's net sales, excluding SST, grew 8.8% sequentially, we achieved the high end of our gross margin guidance, and exceeded our operating profit and earnings per share guidance that we provided on May 5, 2010," said Steve Sanghi, Microchip's President and CEO. He added, "Microchip's non-GAAP gross margins excluding SST were a record 62% for the quarter ending June 2010. Microchip's factories are running at higher levels of production output than they have ever produced in the history of the company, maintaining the high efficiency, quality and yields for which we are known. Excluding SST, Microchip's business produced record non-GAAP operating margins of 37.0% and record non-GAAP earnings per share of 51 cents per diluted share." Shares of MCHP were lower by 0.36% in the after-hours trade.