Microchip Technology Declares Quarterly Cash Dividend Increase to 43.7 Cents Per Share

Rhea-AI Summary

Microchip Technology has declared a quarterly cash dividend of 43.7 cents per share, effective September 3, 2021, for stockholders of record on August 20, 2021. This marks an increase of 5.8% sequentially and 18.75% year-over-year. The announcement reflects Microchip's solid financial performance in the June 2021 quarter, characterized by substantial cash generation and debt reduction. The company has increased its dividend 68 times since initiating payments in 2003, underscoring its ongoing commitment to returning capital to stockholders.

Positive

• Quarterly cash dividend increased to 43.7 cents per share, a 5.8% rise sequentially and 18.75% year-over-year.
• Strong financial performance led to significant cash generation and debt reduction.

Negative

• Potential risks related to COVID-19 affecting business and cash flows.
• Uncertainties regarding the impact of tax law changes on dividend payments.

CHANDLER, Ariz., Aug. 03, 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 43.7 cents per share. The dividend is payable on September 3, 2021 to stockholders of record on August 20, 2021. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 68 times since its inception.

“Microchip’s financial performance in the June 2021 quarter was very strong resulting in significant cash generation and debt reduction,” said Steve Sanghi, Executive Chair. “The Microchip Board of Directors initiated a path to higher dividends in our February 2021 dividend announcement as part of our cash return strategy and continued this with our May 2021 dividend announcement. Our Board is pleased to declare a 5.8% sequential and 18.75% year-over-year increase in our quarterly dividend to a record 43.7 cents per share, which continues to reflect confidence in the cash-generating capability of our business, as well as our ongoing commitment to returning capital to our stockholders.”

Cautionary Statement:

The statements contained in this release relating to our path to higher dividends, our cash return strategy, confidence in the cash-generating capability of our business, and our ongoing commitment to returning capital 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: continued 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 and any new laws which may be enacted; 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 obtain additional capacity from our wafer foundries and other suppliers to 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 August 3, 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 dividend amount declared by Microchip Technology (MCHP) for September 2021?

Microchip Technology has declared a dividend of 43.7 cents per share.

When is the dividend payment date for MCHP stockholders?

The dividend is payable on September 3, 2021.

What was the percentage increase in Microchip's dividend announced in August 2021?

The dividend was increased by 5.8% sequentially and 18.75% year-over-year.

How many times has Microchip increased its dividend since 2003?

Microchip has increased its dividend 68 times since initiating payments in the third quarter of fiscal year 2003.