Microchip Technology Inc. (NASDAQ: MCHP) in the third quarter of FY 18 has reported the loss of $251.1 million in the third quarter, after reporting a profit in the same period a year earlier. One-time tax adjustments, related to the Tax Cuts and Jobs Act of 2017, affected the third quarter result. Along with it, the company incurred a loss of $2.1 million on the retirement of the 2037 2.125% convertible bonds. Non-GAAP net income was at $341.2 million, which is a growth of 38.4% as compared to the same quarter last year. Non-GAAP operating expenses were at 22% of sales, that was a record low and below the low end of the company’s guidance range of 22.2%. Therefore the stock lost over 5% this morning (As of 10:34AM EST on Feb 7^th, 2018; Source: Google finance).

On the other hand, MCHP in the third quarter of FY 18 has reported the adjusted earnings per share of $1.36, beating the analysts’ estimates for the adjusted earnings per share of $1.35 as per the Zacks Investment Research. The company had reported the adjusted revenue growth of 12.8 percent to $994.2 million in the third quarter of FY 18, beating the analysts’ estimates for revenue of $992.2 million.

Moreover, in the December quarter, MCHP had the Cash flow from operations of $365 million.  As of December 31, 2017, the cash and total investment position stood at $1.985 billion.

Additionally, MCHP is aggressively adding capital to support the growth of the company’s production capabilities for the fast-growing new products and technologies, and to bring in-house more of the assembly and test operations that are currently outsourced. These capital investments are expected to bring significant gross margin improvements to the company’s business, particularly for the Atmel manufacturing activities that MCHP are bringing into their own factories.

For the fourth quarter ending in March, MCHP expects its earnings-per-share to range from $1.30 to $1.39. The analysts surveyed by Zacks had projected the adjusted earnings per share of $1.38. Further, MCHP  expects the revenue to be in the range of $964.4 million to $1 billion for the fiscal fourth quarter. The analysts surveyed by Zacks had projected revenue of $1.01 billion.

MCHP has declared a quarterly cash dividend of 36.30 cents per share, which is payable on March 6th, 2018 to stockholders of record on February 21st, 2018.