Microchip Technology Inc. (NASDAQ:MCHP) stock rose 3.46% (As on May 10, 11:23:36 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Non-GAAP net income for the fourth quarter of fiscal 2022 was a record at $764.6 million, up from non-GAAP net income of $521.4 million, in the prior year’s fourth fiscal quarter. On a Non-GAAP basis the company has delivered record gross margin of 66.6% and record operating income of $824.9 million. Overall the business conditions remained very strong in the March quarter with high levels of bookings and record backlog for product to be shipped over multiple quarters, accentuated by the Preferred Supply Program, which continues to be greater than 50% of the aggregate backlog and more than 100% of the backlog in the most constrained capacity areas. Based on the magnitude of the demand-supply imbalance, the size of the non-cancellable backlog, the rate at which new backlog continues to come in, and the pace at which the company can bring new capacity online, the company expects to remain supply-constrained throughout 2022 and into 2023.

MCHP in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.35, beating the analysts’ estimates for the adjusted earnings per share of $1.25, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 25.7 percent to $1.84 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue by 1.33%.

Additionally, the company has declared a record quarterly cash dividend on its common stock of 27.6 cents per share, up 9.1% from the cash dividend paid last quarter and up 33.7% from the year ago quarter. The quarterly dividend is payable on June 3, 2022 to stockholders of record on May 20, 2022. The company is targeting $348.2 million return to shareholders in the June quarter via dividends and share repurchases. The company has repurchased approximately $259.6 million, or 3.6 million shares, during the March 2022 quarter under the previously announced $4.0 billion stock buyback program. The company has paid down $205.9 million of debt in the March 2022 quarter. Cumulatively the company has paid down $4.98 billion of debt over the last 15 quarters. The company has commenced a more active capital return strategy during the year, which was further enhanced during the second half of the fiscal year with the addition of a programmatic stock buyback program. The company has generated record cash flow from operations of $747.7 million.