Microchip Earnings Rise

The company also boosts its dividend.
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Semiconductor company

Microchip Technologies

(MCHP) - Get Report

said its fourth-quarter earnings rose 34% from a year ago.

The Chandler, Ariz.-based company earned $75.6 million, or 35 cents a share, in the quarter, compared with $56.4 million, or 27 cents a share, a year ago, in line with the analysts' expectation.

Fourth-quarter revenue increased 18.8% to $247.2 million as against analysts' expectation of $244.2 million.

From the year-ago quarter, microcontroller revenue grew 17.8% while earnings from flash microcontrollers increased 42%, the company said.

It expects to earn 35 cents a share in the first quarter, excluding stock options expense. Revenue is expected to grow 5% to 6% to about $259.6 million to $262 million as against analysts' forecast of 36 cents a share, on revenue of $254.1 million.

The company also raised its quarterly dividend to 21.5 cents from the previous 19 cents, payable on May 23 to shareholders of record on May 9.

Early Wednesday, Microchip fell 73 cents to $37.35.

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