CHANDLER, Ariz. - Microchip Technology Inc . (NASDAQ:MCHP), a prominent provider of embedded control solutions, has announced the release of its 101765 family of Voltage-Controlled SAW Oscillators (VCSOs). These new components, designed for the aerospace and defense markets, offer ultra-low phase noise at frequencies of 320 MHz and 400 MHz, which is essential for applications such as radar and test and measurement.
The 101765-320-A VCSO, one of the models in this family, boasts a phase noise performance of -166 dBc at a 10 kHz offset and a -182 dBc noise floor. This level of performance is critical for enhancing the lower limit of detection in radar and other sensing applications, where signal clarity and stability are paramount.
These VCSOs are available in a compact, 1-inch square hermetic Kovar package, addressing the industry's need for components that conform to the Size, Weight, Power, and Cost (SWaP-C) considerations. They offer supply voltages ranging from 4.75 to 15.75V and a supply current of 111 mA, providing a power-efficient solution for high-fidelity phase-locked loop timing applications, such as Active Electronically Scanned Array (AESA) systems.
Leon Gross, corporate vice president of Microchip’s discrete products group, highlighted the company's commitment to delivering high-performance timing products that meet customer needs at competitive price points. He emphasized the ability for customers to integrate these VCSOs with other Microchip components, such as FPGAs, MPUs, MCUs, and connectivity solutions, for a comprehensive system design.
For aerospace and defense customers who demand higher reliability, the 101765 VCSOs are available with MIL-PRF-38534 screening, ensuring that only the most reliable components are used in mission-critical applications where failure is not an option.
The new VCSO family extends Microchip's range of SAW products for aerospace and defense, which are engineered to provide high reliability in robust environments. These products support a center frequency range from 30 MHz to 2.7 GHz and can meet ITAR, EAR, and classified specifications for hardware security requirements.
Microchip also provides development tools, including test boards for the 101765-320-A and 101765-400-B models, to facilitate customer testing during the design phase.
The VCSO 101765-320-A and 101765-400-B models are currently available for purchase through Microchip sales representatives or authorized distributors. This announcement is based on a press release statement from Microchip Technology Inc.
In other recent news, Microchip Technology's financial performance showed a decrease in net sales for the first quarter of fiscal year 2025, totaling $1.241 billion, a 6.4% drop from the previous quarter. However, non-GAAP net income remained healthy at $289.9 million, with earnings per diluted share of $0.53. Truist Securities recently downgraded Microchip Technology's stock from Buy to Hold, adjusting the price target to $80 from the previous $89. This decision was based on a broader reassessment of the semiconductor industry and a cautious outlook for the company.
Microchip Technology has also been navigating a cyber incident that disrupted operations. Despite this setback, Citi maintains its Buy rating on the company, viewing the incident as temporary. Piper Sandler upgraded the company's stock from Neutral to Overweight, while Rosenblatt Securities adjusted the stock price target to $90, maintaining a Buy rating.
In terms of other recent developments, Microchip Technology, in collaboration with Acacia Communications (NASDAQ:ACIA), demonstrated a significant advancement in data center interconnectivity. The company also released its Flashtec NVMe 5016 controller to enhance the performance and efficiency of data centers, and announced its entry into the 64-bit embedded microprocessor market. These are among the recent developments that have been shaping the trajectory of Microchip Technology.
InvestingPro Insights
Microchip Technology Inc. (NASDAQ:MCHP) continues to innovate in the semiconductor space, most recently with its release of the 101765 family of Voltage-Controlled SAW Oscillators (VCSOs) for the aerospace and defense markets. As a prominent player in the Semiconductors & Semiconductor Equipment industry, Microchip's new product line underscores its commitment to high-performance and reliability in critical applications.
InvestingPro data shows that Microchip holds a market capitalization of $41.32 billion, reflecting its substantial presence in the market. The company's Price/Earnings (P/E) ratio stands at 30.04, indicating investors' valuation of its earnings potential. Despite a challenging environment with a revenue decline of 24.84% over the last twelve months as of Q1 2025, Microchip maintains a Gross Profit Margin of 63.37%, demonstrating the company's ability to retain a significant portion of its sales as gross profit.
From the perspective of shareholder returns, Microchip has been consistent in rewarding its investors, raising its dividend for 12 consecutive years and maintaining dividend payments for 23 consecutive years. This is further evidenced by a dividend yield of 2.36% as of the last dividend ex-date on August 22, 2024. For those interested in the company's stock performance and future outlook, Microchip is trading at a high Price/Book multiple of 6.45, which suggests that the market attributes a high value to the company's net assets.
InvestingPro Tips reveal that while analysts have revised their earnings expectations downwards for the upcoming period, and anticipate a sales decline in the current year, Microchip's liquid assets exceed its short-term obligations, indicating a healthy liquidity position. Moreover, there are additional insights to be gained; there are 12 more InvestingPro Tips available for Microchip, including predictions about profitability and stock price volatility, which can provide a deeper understanding of the company's financial health and market performance.
For those seeking comprehensive analysis and strategic insights, these additional InvestingPro Tips can be found at: https://www.investing.com/pro/MCHP, offering valuable guidance for investors and industry watchers alike.
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