Microchip Tech Exceeds Targets

The company also says fourth-quarter earnings should top estimates.
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Microchip Technology

(MCHP) - Get Report

, a maker of microcontroller and analog semiconductors, said its third-quarter sales were up more than 14% from last year and reached a record at $234.9 million.

For the quarter ended Dec. 31, the company earned $70.7 million, or 33 cents a share, compared with $53.1 million, or 25 cents a share, in the same period the previous year.

Analysts surveyed by Thomson First Call were expecting earnings of 32 cents a share and revenue of $234.1 million in the third quarter.

"Revenue from both our microcontroller and analog products grew sequentially and reached record levels in the December 2005 quarter, allowing Microchip to achieve record net sales levels overall," the company said Thursday. "Analog products delivered exceptional performance, with revenue growing approximately 18% sequentially, and approximately 40% over the year-ago quarter."

Separately, Microchip said it's raising its quarterly dividend payment by 18.8% from the prior quarter to 19 cents a share.

For the fourth quarter ending March 31, the company is projecting sales of about $242 million and a profit of 34 cents. Analysts are calling for earnings of 32 cents and sales of $237.2 million.