Microchip Technology Inc. reported record revenue for the year and quarter despite weak time for the semiconductor industry.

Microchip (Nasdaq: MCHP), a Chandler-based semiconductor manufacturer, reported its fourth quarter and fiscal year results today.

Microchip Technology Inc. of Chandler is riding high as chip sales reach record levels.

For fiscal 2016, which ended March 31, Microchip reported net income of $324 million, or $1.49 per share, on revenue of $2.17 billion. That was lower compared to net income of $369 million, or $1.65 per share, on revenue of $2.15 billion for fiscal year 2015.

For the quarter ended March 31, the company reported net income of $67.4 million, or 31 cents per share, on revenue of $557.6 million. This compares to net income of $99.4 million, or 45 cents per share, on revenue of $543 million for the same quarter a year ago.

Microchip Chairman and CEO Steve Sanghi said its latest quarterly results were “very strong” amidst a “weak semiconductor industry.”

Sanghi said earnings were up due to “improving sales, gross margin and operating expense leverage, which we believe clearly demonstrates that there is still operating leverage in our premium business model.”

“We entered the June quarter with a stronger backlog than we had going into the March quarter and the bookings and turns for the quarter so far have been strong,” Sanghi said in a statement. “In the June quarter our business is typically stronger in Asia with the Chinese new year behind us, but slower in Europe compared to the March quarter.”

All three of Microchip’s microcontroller product lines — 8-bit, 16-bit and 32-bit — saw higher revenue, with the 16-bit and 32-bit product lines rising in double digit percentages, said Microchip Chief Operating Officer and President Ganesh Moorthy.

Microcontrollers represented 59.9 percent of Microchip’s overall revenue in the most recent quarter, he said.

The company’s analog business was up 35 percent compared to a year ago.

“The strong growth and increase in market share in fiscal year 2016 was the result of our organic growth efforts as well as our Micrel acquisition,” Moorthy said. “Our analog business represented 30.2 percent of Microchip’s overall revenue in the March 2016 quarter.”

By: DocMemory
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