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CHANDLER, Ariz. - Microchip Technology Inc. (NASDAQ:MCHP), a prominent supplier in the aerospace and defense sectors with a market capitalization of $20.91 billion and impressive gross margins of 58%, announced today the launch of its BR235 and BR235D series power relays. According to InvestingPro analysis, the company is currently trading near its Fair Value, with strong financial metrics including a healthy current ratio of 2.25. These relays are designed to fulfill the stringent MIL-PRF-83536 specification and have achieved ISO-9001 certification, ensuring their suitability for critical aerospace, defense, and space applications.
The new series boasts a 25A 3PDT rating and is engineered to perform reliably in extreme conditions, withstanding temperatures ranging from -70°C to 125°C, and passing rigorous tests for 30G vibration and 200G mechanical shock. The relays are hermetically sealed and offer design flexibility through multiple variants, including options with suppressed or non-suppressed coils, various coil voltages, different mounting styles and orientations, as well as straight or J-Hook terminal pin types with tin or gold plating.
Leon Gross, corporate vice president of Microchip’s discrete product group, emphasized the company’s commitment to the aerospace and defense industry, stating, "Our BR235 and BR235D relays are engineered to meet the highest standards of reliability and performance for mission-critical applications." He assured customers of Microchip’s steady supply and support for these high-reliability relays. The company’s financial stability is evident in its 13-year streak of dividend increases, as reported by InvestingPro, which offers 12 additional valuable insights about MCHP’s performance and outlook.
Microchip has a longstanding history in the aerospace sector, offering a wide range of products such as microcontrollers (MCUs), microprocessors (MPUs), field-programmable gate arrays (FPGAs), power management, and timing solutions tailored to meet rigorous aviation, military, and space requirements.
The BR235 and BR235D power relays are currently available for order in production quantities. Customers can obtain additional information or make purchases through a Microchip sales representative, authorized global distributors, or Microchip’s Purchasing and Client Services website. For investors interested in deep-dive analysis of Microchip Technology and the aerospace/defense sector, comprehensive Pro Research Reports are available through InvestingPro, offering detailed insights into the company’s financial health, market position, and growth prospects.
This announcement is based on a press release statement from Microchip Technology Inc.
In other recent news, Microchip Technology Incorporated announced the pricing of a $1.35 billion public offering of depositary shares, each representing a 1/20th interest in a share of 7.50% Series A Mandatory Convertible Preferred Stock. The company plans to use the net proceeds, estimated at $1.32 billion, to fund capped call transactions and repay debt, including obligations under its commercial paper program. Concurrently, Moody’s Ratings downgraded Microchip Technology’s senior unsecured rating from Baa1 to Baa2, citing a weakened financial profile due to a significant decrease in earnings. Despite the downgrade, Moody’s changed the company’s outlook from negative to stable, noting potential improvements in revenue growth and operating margins by late 2025.
Additionally, Microchip Technology has decided to sell its Tempe, Arizona-based wafer fabrication facility, Fab 2, as part of its restructuring plan to enhance operational efficiency. Macquarie Group has been appointed to manage the sale process. The company is consolidating its manufacturing operations to facilities in Oregon and Colorado. Furthermore, Microchip Technology has entered into capped call transactions to reduce potential dilution to its common stock upon conversion of the preferred stock. These transactions are separate from the depositary shares offering and are intended to protect the company’s stock value.
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