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Sep 30, 2020
Microchip Q2 2021 Earnings Report
Microchip's financial performance remained stable with slight revenue decrease, while non-GAAP EPS exceeded guidance.
Key Takeaways
Microchip Technology reported net sales of $1.31 billion, a slight decrease of 2.1% year-over-year. GAAP EPS was $0.27, while non-GAAP EPS reached $1.56, surpassing updated guidance. The company paid down $331.1 million in debt and declared a record quarterly dividend of 36.85 cents per share.
Net sales reached $1.31 billion, slightly below the previous year.
GAAP EPS was $0.27, while non-GAAP EPS was $1.56, exceeding expectations.
The company reduced debt by $331.1 million during the quarter.
A record quarterly dividend of 36.85 cents per share was declared.
Forward Guidance
Microchip anticipates flat to 5% sequential net sales growth for the December quarter. They expect significant revenue growth in calendar year 2021.
Positive Outlook
- Net sales in the December quarter are expected to be flat to up 5% sequentially.
- The June and September quarters were believed to be the bottom of this business cycle.
- A much stronger than seasonal December quarter is anticipated.
- Significant revenue growth is expected in calendar year 2021.
- Good recovery is seen in many markets.
Challenges Ahead
- Shipments to Huawei are stopped for the full December quarter.
- Supply chain constraints are continuing into the December quarter.
- Enterprise demand remains weak.
- Economic uncertainty due to the impact of the COVID-19 pandemic.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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