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Mar 31, 2021

Microchip Q4 2021 Earnings Report

Reported record financial results for the fourth quarter and fiscal year 2021.

Key Takeaways

Microchip Technology reported record financial results for the fourth quarter and fiscal year 2021. Record net sales of $1.467 billion, up 8.5% sequentially and up 10.6% from the year ago quarter. On a Non-GAAP basis: record gross margin of 64.1%; record operating income of $596.9 million and a record 40.7% of net sales; record net income of $521.4 million and record EPS of $1.85 per diluted share.

Record net sales of $1.467 billion, up 8.5% sequentially and up 10.6% from the year ago quarter.

Record gross margin of 63.2%.

Record operating income of $596.9 million and a record 40.7% of net sales.

Record quarterly dividend declared of 41.3 cents per share, an increase of 5.9% from the prior quarter.

Total Revenue
$1.47B
Previous year: $1.33B
+10.6%
EPS
$0.93
Previous year: $0.73
+27.4%
Gross Margin
64.1%
Previous year: 61.4%
+4.4%
Operating Margin
40.7%
Previous year: 12.1%
+236.4%
Quarterly Dividend
$0.413
Gross Profit
$927M
Previous year: $814M
+13.9%
Cash and Equivalents
$282M
Previous year: $403M
-30.0%
Free Cash Flow
$394M
Previous year: $360M
+9.4%
Total Assets
$16.5B
Previous year: $17.4B
-5.4%

Microchip

Microchip

Forward Guidance

For the first quarter of fiscal year 2022, Microchip expects net sales to be up between 3.5% and 7.5% sequentially.

Positive Outlook

  • Net Sales: $1.519 to $1.577 billion
  • Gross Margin: 64.1% to 64.5%
  • Operating Income: 40.6% to 41.4%
  • Net Income: $521.2 to $553.6 million
  • Earnings per Diluted Share: $1.85 to $1.95

Challenges Ahead

  • Gross Margin: 63.6% to 63.9%
  • Operating Expenses: 40.8% to 41.7%
  • Operating Income: 21.8% to 23.2%
  • Other Expense, net: $72.9 to $74.9 million
  • Income Tax Provision: $47.9 to $65.3 million