CHANDLER (dpa-AFX) - Microchip Technology Inc. (MCHP) on Thursday reported a profit for the first quarter, compared to a loss last year, as revenues grew, driven by improving demand, inventory normalization and stronger factory utilization.
Microchip Technology reported first-quarter net income attributable to common stockholders of $202.0 million or $0.37 per share, compared with a loss of $46.4 million or $0.09 per share a year earlier.
On an adjusted basis, earnings were $0.76 per share, compared to $0.27 per share last year.
Net sales increased 38.0% year over year to $1.485 billion from $1.076 billion. Gross margin expanded to 63.2% from 53.6% a year ago.
'We kicked off fiscal 2027 on a strong note, with net sales increasing 38% year over year and 13.2% sequentially to $1.485 billion, above the high end of our guidance,' said Steve Sanghi, Microchip's President and Chief Executive Officer. 'Improving demand, continued inventory normalization, and stronger factory utilization contributed to better operational leverage during the quarter and support our continued progress towards our long-term business model.'
For the second quarter, Microchip expects net sales of $1.589 billion to $1.618 billion, earnings of $0.53 to $0.54 per share and adjusted earnings of $0.91 to $0.95 per share.
The board declared a quarterly cash dividend of 45.5 cents per share, payable on September 9, 2026, to shareholders of record on August 24, 2026.
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