Microchip Technology Declares Quarterly Cash Dividend Increase to 39 Cents Per Share

Rhea-AI Summary

Microchip Technology has declared a quarterly cash dividend of 39 cents per share, payable on March 8, 2021, to stockholders of record as of February 22, 2021. This marks a 5.8% increase in the dividend, reflecting the company's strong financial performance in the December 2020 quarter, significant cash generation, and ongoing debt reduction efforts. Since initiating dividend payments in 2003, Microchip has increased its dividend 66 times, demonstrating a commitment to returning value to shareholders.

Positive

• Dividend increased by 5.8% to 39 cents per share, demonstrating strong financial performance.
• Significant cash generation and debt reduction achieved, enhancing shareholder value.

Negative

• None.

CHANDLER, Ariz., Feb. 04, 2021 (GLOBE NEWSWIRE) -- (NASDAQ: MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected and secure embedded control solutions, today announced that its Board of Directors has declared a quarterly cash dividend on its common stock of 39 cents per share. The dividend is payable on March 8, 2021 to stockholders of record on February 22, 2021. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 66 times since its inception.

“Microchip’s financial performance in the December 2020 quarter was strong driving significant cash generation and debt reduction,” said Steve Sanghi, Chief Executive Officer. “As we continue to make significant progress towards our debt reduction goals, our Board has decided to return additional cash to our stockholders through a higher dividend as part of our cash return strategy. Our Board is pleased to declare a 5.8% increase in our quarterly dividend to a record 39 cents per share, which continues to reflect confidence in the cash-generating capability of our business, as well as our ongoing commitment to returning value to our stockholders.”

Cautionary Statement:

The statements contained in this release relating to continuing to make significant progress towards our debt reduction goals, returning additional cash to our stockholders through a higher dividend as part of our cash return strategy, the cash-generating capability of our business and our ongoing commitment to returning value to our stockholders are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involves risks and uncertainties that could cause actual results to differ materially, including, but not limited to: uncertainties related to the impact of the COVID-19 pandemic on the economy, our business and the business of our customers and suppliers, actual cash flows generated from and used in the operation of our business; actual or projected levels of capital expenditures; our balance of cash and investments; changes in the tax rates that our stockholders pay on our dividends or other changes in U.S. tax laws including the Tax Cut and Jobs Act of 2017; our available borrowings under our credit agreement; the impact of any significant acquisitions we may make; our ability to realize the expected benefits of our acquisitions, changes in

demand or market acceptance of our products and the products of our customers and our ability to meet any increases in market demand; the mix of inventory we hold and our ability to satisfy short-term orders from our inventory; changes in utilization of our manufacturing capacity and our ability to effectively manage our production levels and increase production to meet any increases in market demand; our ability to control the level of operating expenses relative to our level of revenues; competitive developments including pricing pressures; the level of orders that are received and can be shipped in a quarter; changes or fluctuations in customer order patterns and seasonality; the costs and outcome of any current or future litigation or other matters involving our Microsemi acquisition, the Microsemi business, intellectual property, customers, or other issues; the costs and outcome of any current or future tax audit or investigation regarding our business or the business of Microsemi; disruptions in our business or the businesses of our customers or suppliers due to natural disasters (including any floods in Thailand), terrorist activity, armed conflict, war, worldwide oil prices and supply, public health concerns (including COVID-19) or disruptions in the transportation system; and general economic, industry or political conditions in the United States or internationally.

For a detailed discussion of these and other risk factors, please refer to Microchip's filings on Forms 10-K and 10-Q. You can obtain copies of Forms 10-K and 10-Q and other relevant documents for free at Microchip’s website (www.microchip.com) or the SEC's website (www.sec.gov) or from commercial document retrieval services.

Stockholders of Microchip are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this February 4, 2021 press release, or to reflect the occurrence of unanticipated events.

About Microchip:

Microchip Technology Incorporated is a leading provider of smart, connected and secure embedded control solutions. Its easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs, which reduce risk while lowering total system cost and time to market. The company's solutions serve more than 120,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at www.microchip.com.

The Microchip logo and name are registered trademarks of Microchip Technology Incorporated.

INVESTOR RELATIONS CONTACT:
J. Eric Bjornholt – CFO (480) 792-7804

FAQ

What is the new dividend amount for MCHP?

Microchip Technology has declared a new dividend amount of 39 cents per share.

When will the dividend for MCHP be paid?

The dividend will be paid on March 8, 2021.

What is the record date for MCHP's dividend?

The record date for the dividend is February 22, 2021.

How many times has MCHP increased its dividend?

Microchip Technology has increased its dividend 66 times since it was initiated in 2003.

What factors contribute to MCHP's dividend increase?

The dividend increase is attributed to strong financial performance, cash generation, and debt reduction.