About this content About Andrew Kessel Andrew is a financial journalist with experience covering public companies in a wide breadth of industries, including tech, medicine, cryptocurrency, mining and retail. In addition to Proactive, he has been published in a Financial Times-owned newsletter covering broker-dealer firms and in the Columbia Misourian newspaper as the lead reporter focused on higher education. He got his start with an internship at Rolling Stone magazine.  Read more About the publisher Pr ...

Microchip Technology MCHP, -2.30% is the second company to ink a preliminary memorandum of terms with the U.S. Commerce Department under the CHIPS & Science Act, according to a statement released by the White House attributed to National Economic Advisor Lael Brainard. Microchip Technology will receive $162 million. “The chips and microcontroller units (MCUs) that Microchip fabricates are essential components in a wide range of consumer and defense products that are critical to American manufacturing,” sai ...

Financial Data and Key Metrics - Net sales in the September quarter were $2.254 billion, down 1.5% sequentially [48] - Non-GAAP gross margins were 68.1%, operating expenses were at 20%, and operating income was a record 48.1% [49] - Non-GAAP net income was $889.3 million, and non-GAAP earnings per diluted share was $1.62 [49] - GAAP net income was a record $666.6 million, resulting in a record $1.21 in earnings per diluted share [49] - Inventory balance at September 30, 2023, was $1.331 billion, with 167 days of inventory, flat compared to the prior quarter [51] - Adjusted free cash flow was $454.3 million in the September quarter, with 77.5% or $352.1 million returned to shareholders [16][54] Business Line Data and Key Metrics - Mixed-signal microcontroller net sales were down 1.7% sequentially and up 8.5% year-over-year [60] - Analog product line net sales were down 1.7% sequentially and up 8.8% year-over-year [60] - Aerospace and defense end market showed reasonable resilience, while other end markets experienced broad-based weakness [89] Market Data and Key Metrics - Asia was down sequentially, Europe was flat, and the Americas were slightly up in terms of revenue [60] - China's market remained weak, with no significant improvement in distribution sell-through [15][127] - Short lead times were reduced from 52 weeks at the start of 2023 to 13 weeks by the end of the September quarter, with a target of less than 8 weeks by the end of 2023 [68] Company Strategy and Industry Competition - The company is focusing on total system solutions and key market megatrends to drive above-market long-term growth [72] - The PSP (Product Supply Program) was beneficial during periods of long lead times but has less value now due to reduced lead times [8][9] - The company is managing inventory levels carefully, with a target of 130 to 150 days, and is reducing capital investments in response to the challenging economic backdrop [77][102] Management Commentary on Operating Environment and Future Outlook - The company expects net sales for the December quarter to decline between 15% and 20% sequentially, with a year-over-year decline of 14.3% at the midpoint [71] - The March quarter is anticipated to see another sequential decline, although to a lesser extent than the December quarter [79] - The company remains confident in its long-term growth prospects, driven by strong design win momentum and focus on key market trends [72] Other Important Information - The company plans to increase free cash flow return to shareholders by 500 basis points every quarter until reaching 100% of adjusted free cash flow returned to shareholders, expected by the March quarter of 2025 [19] - The company reduced finished goods inventory last quarter and will continue to focus on inventory management [18] - The company expects non-GAAP gross margins to be between 64% and 65% for the December quarter, with non-GAAP operating expenses between 22.7% and 23.3% [78] Q&A Session Summary Question: How are bookings and pushouts affecting the business? - New bookings are in better shape due to more informed demand, while pushouts are mainly for backlog placed 9-12 months ago [4][5] - Customers are taking advantage of short lead times and readily available supply, leading to churn in backlog and pushout requests [6] Question: How is the PSP program evaluated in hindsight? - The PSP program was beneficial during periods of long lead times but has less value now due to reduced lead times [7][8] - The program helped manage backlog and make informed decisions on foundry orders and capital equipment [9] Question: What is the outlook for pricing and gross margins? - Pricing remains stable, with no significant erosion expected, as the company focuses on long design cycles and competitive pricing at the design stage [11] - Gross margins are expected to decline in the December quarter but remain strong, with potential adjustments based on the business environment [98][120] Question: How is inventory being managed? - The company is reducing finished goods inventory and working with distributors to balance inventory levels [18][22] - Inventory levels are above target but are being managed carefully, with adjustments based on the business environment [102][103] Question: What is the impact of short lead times on the business? - Short lead times are helping customers navigate the uncertain environment but are also resulting in lower bookings and reduced near-term visibility [69] - The company expects to continue reducing lead times to less than 8 weeks by the end of 2023 [68] Question: How is the company managing utilization rates? - Utilization rates have been reduced modestly, with no underutilization charges anticipated in the near term [82] - The company is balancing inventory build with the need to respond quickly to changes in the business environment [110][111]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 0-21184 MICROCHIP TECHNOLOGY INCORPORATED (Exact Name of Registrant as Specified in Its Charter) (State o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or Other Jurisdiction of Incorporation or Organization) Delaware 86-0629024 (IRS Employer Identification No.) For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File N ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended March 31, 2023 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________ to __________ Commission File Number 0-21184 MICROCHIP TECHNOLOGY INCORPORATED (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisd ...

Microchip Technology Inc. (NASDAQ:MCHP) Q3 2023 Earnings Conference Call February 2, 2023 5:00 PM ET Company Participants Ganesh Moorthy - President & Chief Executive Officer James Eric Bjornholt - Senior Vice President & Chief Financial Officer Stephen Sanghi - Executive Chair Sajid Daudi - Head Of Investor Relations Conference Call Participants Toshiya Hari - Goldman Sachs Vivek Arya - Bank of America Securities Gary Mobley - Wells Fargo Securities Joshua Buchalter - Cowen & Company Raji Gill - Needham & ...

Leading Total Systems Solutions Provider • Wireless and Wired Connectivity solutions • Clock and Timing solutions Durable end markets Durable End Markets Communication 129 Consecutive Quarters of Non-GAAP Profitability! 5 Sustained growth from organic efforts focused on TSS and Megatrends Synergistic product portfolio empowers disruptive growth trends 6 Record operating margin of 47.5%; increased 283 basis points YoY 7 Record revenue of $2.169 billion; grew 4.6% QoQ and 23.4% YoY ‒ 9 consecutive quarters of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) Commission File Number: 0-21184 MICROCHIP TECHNOLOGY INCORPORATED (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 Delaware 86-0629024 (IRS Employer Identification No.) OR ☐ TRANSITION REPORT PURSUANT TO SECTION ...

Microchip Technology Inc. (NASDAQ:MCHP) Q2 2023 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Ganesh Moorthy - President & Chief Executive Officer James Eric Bjornholt - Senior Vice President & Chief Financial Officer Stephen Sanghi - Executive Chair Conference Call Participants Ambrish Srivastava - BMO Vivek Arya - Bank of America Securities Christopher Rolland - Susquehanna Timothy Arcuri - UBS William Stein - Truist Securities Chris Danely - Citigroup Toshiya Hari - Goldman Sa ...