On Oct. 25, Microchip Technology (NASDAQ:MCHP) released second-quarter earnings for the period ended Sept. 30.

  • Revenues rose by 17.9% to $268 million, driven by strong performance in both the flash microcontrollers and 16-bit microcontroller segments (which experienced 42.3% growth and 210% growth year over year, respectively).
  • Microchip Technology increased its dividend to $0.25 per share.
  • The company's board has authorized a stock repurchase program of up to 10 million shares.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$269

$267.93

$227.30

17.9%

Net Profit

--

$79.48

$65.65

21.1%

EPS

$0.36

$0.36

$0.31

16.1%

Diluted Shares

--

220

215

2.5%



Get back to basics with a look at the income statement.

Margin Checkup

Q2 2006

Q2 2005

Change*

Gross Margin

60.45%

59.20%

1.25

Operating Margin

34.10%

34.89%

(0.79)

Net Margin

29.66%

28.88%

0.78

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash + ST Invest.

$612.02

$902.49

(32.2%)

Accounts Rec.

$123.11

$120.50

2.2%

Inventory

$117.58

$110.23

6.7%


Liabilities

Q2 2006

Q2 2005

Change

Accounts Payable

$246.70

$32.63

656.1%



Learn the ways of the balance sheet.

Cash Flow Highlights

Where's the money? They didn't show us.

Find out why Fools always follow the money.

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