Microchip Technology Inc. (NASDAQ: MCHP) stock rose over 1.5% on August 7th, 2019 (As of 12:07 pm GMT-4; Source: Google finance) as the company posted decent results for the first quarter of FY 20. MCHP in the first quarter of FY 20 has reported the adjusted earnings per share of $1.41, beating the analysts’ estimates for the adjusted earnings per share of $1.38, according to Zacks Consensus Estimate. For the second quarter ending in October, MCHP expects its per-share earnings to range from $1.37 to $1.49. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.53. The company expects revenue to be in the range of $1.32 billion to $1.38 billion for the fiscal second quarter. Analysts surveyed by Zacks had expected revenue of $1.39 billion.
The company has reported Non-GAAP net income for the first quarter of fiscal 2020 of $357.6 million, down 11.9% from non-GAAP net income of $405.8 million, in the prior year’s first fiscal quarter. Further, the integration of Microsemi with Microchip continues to progress well. The business units and sales organization have substantially completed their integration activities. the company are pleased with the synergies the company have achieved since the company closed the acquisition despite the weaker macro-economic environment over the past several quarters.
Moreover, the end-market demand, which reflects sell-through activities in the distribution channel, was $27.1 million higher than GAAP (sell-in) revenue in the June 2019 quarter, and was up 0.7% sequentially compared to the March 2019 quarter. As a result, distribution inventory days declined from 35 to 32 days. The end-market demand for the microcontroller business was up 1.8% and for our FPGA business was up 7% compared to the March 2019 quarter. The FPGA business set an all-time quarterly record with almost $101 million in end-market demand. Design wins on the new, low power, mid-range PolarFire family continued to grow strongly, and the company are optimistic about this product family adding another leg to our future growth.
Additionally, MCHP has declared a record quarterly cash dividend on its common stock of 36.60 cents per share. The quarterly dividend is payable on September 4, 2019 to stockholders of record on August 21, 2019. Further, MCHP has paid down $257.5 million of total debt during the June quarter, reflecting a cumulative pay down of $1.414 billion over the past four quarters, as the company continued to manage the working capital requirements for the business.