CHANDLER, Ariz., May 09, 2022 (GLOBE NEWSWIRE) — (NASDAQ: MCHP) — Microchip Technology Incorporated, a leading provider of smart, connected, and secure in-vehicle control solutions, today announced that its board of Directors declared a quarterly cash dividend on its common stock of 27.6 cents per share. The dividend is payable on June 3, 2022 to shareholders of record on May 20, 2022. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal 2003 and has increased its dividend 70 times since its inception.
“Microchip’s financial performance in the March 2022 quarter was very strong, resulting in strong cash generation and significant debt reduction,” said Steve Sanghi, Executive Chairman. “Today, our Board of Directors approved a sequential increase in our dividend of 9.1% to 27.6 cents per share, up from our February dividend of 25.3 cents per share. , our board is now aiming to increase our dividend by at least 9% sequentially, up from the 7% sequential increases communicated on our Investor and Analyst Day on November 8, 2021. These actions reflect confidence in our company’s cash-generating ability, as well as our continued commitment to return capital to our shareholders.
The statements in this release regarding our Board of Directors’ objective to increase our dividend by at least 9% sequentially, our confidence in the cash-generating ability of our business, and our continued commitment to repay the capital to our shareholders are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, continuing uncertainties affecting the global economy, our business, and the businesses of our customers and suppliers due to the COVID-19 pandemic, geopolitical conditions (including the conflict between Ukraine and Russia) and rising interest rates, the actual cash flows generated and used in connection with our a activities; actual or projected levels of capital expenditures; our cash and investment balance; changes in the tax rates our shareholders pay on our dividends or other changes in US tax laws, including the Tax Cut and Jobs Act of 2017 and any new laws that may be enacted; our borrowings available under our credit agreement; the impact of any material acquisitions we may make; our ability to realize expected benefits from our acquisitions, changes in market demand or acceptance for our products and our customers’ products and our ability to meet any continuing increases in market demand; the composition of the inventory we hold and our ability to fill short-term orders from our inventory; changes in the use of our manufacturing capacity and our ability to effectively manage our production levels and increase production to meet any continued increase in market demand; our ability to obtain additional capacity from our wafer foundries and other suppliers to increase production to meet any continued increase 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 received and able to be shipped in a quarter; changes or fluctuations in customer ordering patterns and seasonality; the costs and outcome of any current or future litigation or other matters relating to our acquisition of Microsemi, Microsemi’s business, intellectual property, customers or other issues; the costs and results of any current or future tax audits or investigations relating to our business or the business of Microsemi; disruptions to our business or the business of our customers or suppliers due to acts of God (including any flooding in Thailand), terrorist activity, armed conflict, war, global oil prices and supply, public health concerns (including COVID-19) or disruptions in the transportation system; and general economic, industrial, or political conditions in the United States or abroad.
For a detailed discussion of these and other risk factors, see 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 free of charge from Microchip’s website (www.microchip.com) or the SEC’s website (www.sec.gov) or from commercial document retrieval services.
Microchip stockholders are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip undertakes no obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this May 9, 2022 press release or to reflect the occurrence of unforeseen events.
Microchip Technology Incorporated is a leading provider of smart, connected and secure in-vehicle control solutions. Its easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs, which reduce risk while reducing total system cost and time to market. The company’s solutions serve more than 122,000 customers in the industrial, automotive, consumer, aerospace and defense, communications and computing markets. Based in Chandler, Arizona, Microchip offers exceptional technical support and reliable delivery and quality. For more information, visit Microchip’s website at www.microchip.com.
The Microchip name and logo are registered trademarks of Microchip Technology Incorporated.
INVESTOR RELATIONS CONTACT:
J. Eric Bjornholt – Chief Financial Officer