- I recently discovered a new definition for "SaaS": Silicon-as-a-Service. However, that could refer to wafers, so I prefer "semiconductors-as-a-service".
- Microchip, long admired as one of the best-run semi companies, appears to be the epitome of the new definition: it is as SaaSy as a semi company can be.
- Proof is in the recent quarterly report that saw a record GAAP gross margin of 62.6% and a record backlog.
- Non-GAAP EPS of $1.62 was at the high-end of guidance. Forward guidance was strong, and the company boosted the quarterly dividend by 5.8% to $0.39/share.
For further details see:
Microchip's SaaS-Based Model Yields Record Margins, Record Backlog, Strong Guidance, 5.8% Dividend Boost