Core Viewpoint - Microchip Technology Incorporated has declared a quarterly cash dividend of 45.5 cents per share, payable on June 5, 2025, to stockholders of record on May 22, 2025, marking a continuation of its dividend payments since fiscal year 2003 [1]. Company Overview - Microchip Technology Incorporated is a leading provider of smart, connected, and secure embedded control solutions, serving approximately 109,000 customers across various markets including industrial, automotive, consumer, aerospace and defense, communications, and computing [2]. - The company offers easy-to-use development tools and a comprehensive product portfolio that help customers create optimal designs, reducing risk while lowering total system cost and time to market [2]. - Headquartered in Chandler, Arizona, Microchip is known for its outstanding technical support, dependable delivery, and quality [2].

Core Viewpoint - Microchip Technology (MCHP) is expected to report a significant decline in revenues and earnings for the fourth quarter of fiscal 2025, reflecting ongoing macroeconomic challenges and operational restructuring efforts [1][2][4]. Financial Performance - Microchip anticipates net sales between $920 million and $1 billion for the third quarter of fiscal 2025, with non-GAAP earnings expected between 5 cents and 15 cents per share [1]. - The Zacks Consensus Estimate for fiscal fourth-quarter 2025 revenues is $961.07 million, indicating a 27.51% decline from the previous year's quarter [1]. - The consensus for fiscal fourth-quarter earnings is set at 10 cents per share, representing an 82.46% year-over-year decline [2]. Operational Insights - Inventory levels have improved, reaching 266 days in the third quarter of fiscal 2025, an increase of 19 days sequentially, with expectations for a decrease in inventory days and dollar value in the upcoming quarter [3]. - Operating expenses are projected to rise to 37.7%-40.5% of sales in the fiscal fourth quarter, compared to 34.9% in the fiscal third quarter [5]. - The company is expected to incur $45 million in charges related to the cancellation of certain long-term agreements, negatively impacting the bottom line [5]. Market Context - Microchip is facing persistent macroeconomic weakness and limited visibility, particularly in the industrial and automotive sectors, but benefits from a diverse product portfolio and expansion into megatrends such as Edge Computing, IoT, and AI/ML [4]. - The company has initiated a corporate-wide layoff to drive operational savings [4]. Earnings Expectations - Microchip has an Earnings ESP of +8.03% and a Zacks Rank of 3, indicating a potential for an earnings beat [6].

Core Viewpoint - Analysts project that Microchip Technology (MCHP) will report quarterly earnings of $0.10 per share, reflecting an 82.5% decline year over year, with revenues expected to reach $961.07 million, down 27.5% from the same quarter last year [1]. Group 1: Earnings Estimates - The consensus EPS estimate for the quarter has been revised downward by 2.3% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting potential investor reactions, as empirical studies show a strong relationship between earnings estimate revisions and short-term stock price performance [3]. Group 2: Key Metrics Projections - Analysts estimate 'Net Sales- Mixed-signal Microcontrollers' will reach $500.65 million, indicating a year-over-year decline of 28% [5]. - 'Net Sales- Other' is expected to be $210.26 million, reflecting a 30.2% decrease from the year-ago quarter [5]. - The average prediction for 'Net Sales- Analog' is $250.64 million, showing a 23.9% decline from the previous year [5]. Group 3: Stock Performance - Microchip Tech shares have returned +32.3% over the past month, significantly outperforming the Zacks S&P 500 composite, which saw a +0.4% change [6]. - With a Zacks Rank 3 (Hold), MCHP is anticipated to mirror overall market performance in the near future [6].

Core Insights - Microchip Technology Incorporated announced the appointment of Rick Cassidy to its Board of Directors effective May 2, 2025, enhancing its leadership team with significant semiconductor industry experience [1][2]. Company Overview - Microchip Technology is a leading provider of smart, connected, and secure embedded control solutions, serving approximately 112,000 customers across various markets including industrial, automotive, consumer, aerospace and defense, communications, and computing [3]. - The company is headquartered in Chandler, Arizona, and offers a comprehensive product portfolio along with easy-to-use development tools that help customers reduce risk and lower total system costs [3]. Leadership Appointment - Rick Cassidy has nearly three decades of experience at Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), where he held significant leadership roles, including President and CEO of TSMC North America and founding President and CEO of TSMC Arizona [2]. - Cassidy's expertise in corporate strategy and the fabless semiconductor model is expected to be a valuable asset for Microchip as it aims to strengthen its position in the semiconductor industry [2].

Core Viewpoint - Microchip Technology (MCHP) is anticipated to report a year-over-year decline in earnings and revenues for the quarter ended March 2025, with earnings expected to be $0.10 per share, reflecting an 82.5% decrease, and revenues projected at $961.07 million, down 27.5% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for May 8, and the stock may experience upward movement if the reported numbers exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 2.33% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Microchip Tech is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +8.03%, indicating a likelihood of beating the consensus EPS estimate [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. Historical Performance - In the last reported quarter, Microchip Tech was expected to post earnings of $0.28 per share but delivered only $0.20, resulting in a surprise of -28.57% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [13]. Industry Context - In the semiconductor industry, M/A-Com (MTSI) is expected to report earnings of $0.84 per share for the same quarter, reflecting a year-over-year increase of 42.4%, with revenues projected at $230.08 million, up 27% [17]. - The consensus EPS estimate for M/A-Com has been revised 1% higher, but with an Earnings ESP of 0.00%, it is challenging to predict a beat [18].

Market Reaction - Semiconductor stocks experienced significant declines, with Wolfspeed dropping 14.6%, NXP Semiconductors down 6.6%, and Rambus falling 4.7% [1] - Other notable declines include ON Semiconductor at 2.4%, Supermicro at 2.3%, and Micron Technology at 1.67% [1] Government Policy Impact - The Trump administration is reportedly working on modifying a rule from the Biden era that restricts most countries from accessing U.S.-designed AI chips [1] - The proposed changes may involve replacing the current tiered system with intergovernmental agreements [1]

Core Insights - The rapid growth of artificial intelligence (AI) is driving unprecedented demand for high-performance, secure, and innovative solutions in data centers [1] - Microchip Technology is developing advanced technologies to address evolving market needs in data center connectivity, storage, and data retrieval [1] Product Portfolio - Microchip's portfolio includes high-speed interconnect and storage technologies such as Gen 3, Gen 4, and Gen 5 PCIe switches, with Gen 6 and Gen 7 technologies in development [2] - The company offers Non-Volatile Memory Express (NVMe), storage and RAID controllers with hardware-based security for enhanced data protection [2] - Connectivity solutions include retimers and Ethernet PHYs to optimize interconnect functionality, along with power management and system monitoring solutions designed for energy-efficient operations [2] New Solutions - Introduction of the 800G Active Electrical Cable (AEC) Reference Design, featuring the META-DX2C 800G retimer with 112G SerDes, aimed at reducing development time and cost for generative AI networks [3][7] - The Lambda Splitting technique in the design significantly reduces costs and boosts bandwidth efficiency by up to 50% [7] - The LAN9646 6-Port Gigabit Ethernet (GbE) Switch supports multiple interface options and is designed for various networking applications, providing full VLAN and Quality of Service (QoS) support [7] Power Management - The MCPF1412 high-density power module delivers up to 12A of current within a voltage range of 0.6V to 1.8V, optimized for space-constrained applications [7] - dsPIC33A Digital Signal Controllers (DSCs) enhance energy efficiency and reliability in data centers and AI servers, with features for power factor correction and synchronous rectification [13] Security Features - Microchip's data center solutions include Secure Root of Trust Controllers that protect system integrity by verifying firmware at power-up and monitoring system activity [9] - These controllers support secure system ownership transfer and robust lifecycle management [9] Industry Commitment - The company emphasizes its commitment to delivering essential building blocks to address technology challenges in modern data centers, focusing on high-speed connectivity, storage rates, and power management systems [9]

Market Performance - Nasdaq 100 index increased by over 2%, with Microchip Technology rising by 9.6% and ON Semiconductor by 7.5% [1] - Other notable gainers include Marvell Technology, Analog Devices, Texas Instruments, Atlassian, Lam Research, NXP Semiconductors, AppLovin, Arm Holdings, and others, with increases up to 6.96% [1] - S&P 500 index rose by 1.4%, Nasdaq by 1.98%, and Philadelphia Semiconductor index by 4.6% [1] Individual Stock Performance - Microchip Technology Inc price at $45.96, up by $4.03 [2] - ON Semiconductor Corp price at $39.36, up by $2.73 [2] - Marvell Technology Inc price at $57.51, up by $3.74 [2] - Analog Devices Inc price at $195.61, up by $12.49 [2] - Texas Instruments Inc price at $162.24, up by $10.09 [2] - Atlassian Corp price at $221.16, up by $12.89 [2] - Lam Research Corp price at $70.82, up by $4.09 [2] - NXP Semiconductors NV price at $191.20, up by $10.33 [2] - AppLovin Corp price at $266.10, up by $13.75 [2] - Arm Holdings PLC price at $110.55, up by $5.39 [2] - Other companies like MongoDB, Broadcom, CrowdStrike, and Zscaler also showed significant gains [2]

Core Insights - The MCPF1412 power module is designed to meet the increasing demands for efficient power management in industrial automation and data center applications, featuring integrated I2C and PMBus interfaces for flexible configuration and monitoring [1][3] Product Features - The MCPF1412 is a highly efficient 12A power module with a compact size of 5.8 mm × 4.9 mm × 1.6 mm, reducing board space by over 40% compared to traditional discrete solutions, enhancing reliability and minimizing PCB switching and RF noise [2] - It offers multiple diagnostic functions including over-temperature, over-current, and over-voltage protection, with an operating temperature range of -40°C to +125°C [4] Compatibility and Flexibility - The module is highly compatible with Microchip's FPGAs and PCIe solutions, allowing for reduced chip placements and space usage when combined with other Microchip devices [3] - It supports standalone operation without a digital interface, enabling easy configuration of output voltages and system monitoring via the Power Good output [3] Development and Support - The MCPF1412 is supported by the EV37R94A Evaluation Board and GUI to assist developers in evaluating their designs [6] Pricing and Availability - The MCPF1412 is priced at $5.10 each for orders of 10,000 units, with purchasing options available through Microchip sales representatives or authorized distributors [7]

Integrated low-power analog peripherals reduce design costs and complexityCHANDLER, Ariz., April 23, 2025 (GLOBE NEWSWIRE) -- Devices designed for capturing rapidly changing analog signals must respond quickly while consuming minimal power, especially in battery-operated applications. To address these demands, Microchip Technology (Nasdaq: MCHP) has released the PIC16F17576 microcontroller (MCU) product family with integrated low-power peripherals and the ability to precisely measure volatile analog signals ...