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Microchip Technology Reports Narrower 4Q Profit

The Associated Press

CHANDLER, Ariz. (AP) — Semiconductor maker Microchip Technology Inc. reported Thursday that its fiscal fourth quarter 2009 profit declined 70 percent to $22.8 million as sales plunged 34 percent, but results still topped Wall Street expectations.

Profit for the quarter ended March 31 totaled 12 cents a share, compared with year-ago earnings of $76.7 million, or 40 cents a share. Adjusted profit came to 15 cents a share in the latest period.

Sales slid to $173.3 million from $260.4 million a year earlier.

The results topped estimates of analysts surveyed by Thomson Reuters, who had expected profit of 11 cents a share on revenue of $172.1 million. Analysts generally exclude one-time items from their estimates.

For its fiscal 2009 year, the company said it earned $248.8 million, or $1.33 a share, compared with profit of $297.7 million, or $1.40 a share, for the prior year. Twelve-month sales came to $903.3 million, compared with $1.04 billion for the prior year.

Microchip Technology also announced that its board has declared a quarterly cash dividend on its common stock of 33.9 cents per share. The quarterly dividend is payable on June 4 to stockholders of record on May 21.

The company said that in light of the highly uncertain global economic conditions and limited visibility, Microchip is not providing revenue guidance at this time. However, for its internal activities, it is planning profit of roughly 11 cents per share on revenue of $182 million for the quarter ending June 30.

Analysts have forecast profit of 14 cents per share on revenue of $178.7 million for the quarter.