Microchip Technology Inc. (NASDAQ: MCHP) has posted better than expected results in the first quarter of FY 17 on the back of the growth with its Microchip 2.0 initiative. Microchip 2.0 combines the product, technology, system and employee strength of MCHP and its previous acquisitions, and allows the company to provide the total system solutions to the customers by selling multiple products into the circuit boards that drive their end applications. Overall, the company has reported net income of $170.6 million compared to a net loss of $113.4 million for the same quarter a year ago. The prior year’s income results were adversely affected due to the purchase accounting adjustments associated with Microchip’s Atmel acquisition. Accordingly, the stock rose over 1.4% in the after hours session on August 3rd, 2017 (As of  7:58PM EDT; Source: Google finance)

Microchip Technology in the first quarter of FY 17 has reported the adjusted earnings per share of $1.31, beating the analysts’ estimates for the adjusted earnings per share of $1.23. The company had reported the adjusted revenue growth of 15.2 percent to $972.1 million in the first quarter of FY 17, beating the analysts’ estimates for revenue of $946.1 million. The year-over-year non-GAAP net sales comparison was not affected due to the acquisitions since Atmel’s full quarter revenue results were included in the June 2016 quarter net sales. The non-GAAP gross margin has crossed the 60% milestone and non-GAAP operating profit has exceeded 37% for the first time.

For the second quarter ending in October, Microchip Technology expects its per-share earnings to be in the range from $1.33 to $1.37.  The analysts surveyed by Zacks had projected the adjusted earnings per share of $1.27. The company expects the revenue to be in the range of $1 billion for the fiscal second quarter. The analysts surveyed by Zacks had expected revenue of $959.8 million.

Additionally, Microchip Technology has declared a record quarterly cash dividend on its common stock of 36.2 cents per share. The cash flow from operations in the June quarter was a record $345 million. As of June 30th, 2017, the consolidated cash and total investment position on the balance sheet was $1.65 billion. Meanwhile, Microchip Technology has announced in January 2016 that it was spending $3.56 billion to buy San Jose-based Atmel Corp., which is one of the global leaders in microcontroller and touch technology solutions.

MCHP stock has risen 45% in a year (source: Google Finance).