Core Insights - Microchip Technology reported disappointing third-quarter fiscal 2025 results, with non-GAAP earnings of 20 cents per share, missing the Zacks Consensus Estimate by 28.57% and down 81.5% year over year [1][2] - Net sales were $1.03 billion, a decrease of 42% year over year, also missing the Zacks Consensus Estimate by 2.02%, and a sequential decline of 11.8% [2] - Following the results, Microchip shares fell over 6% in after-hours trading, with a 37% decline over the past 12 months compared to a 22.8% growth in the Zacks Computer and Technology sector [2] Segmental Performance - Sales from Mixed-signal Microcontroller, Analog, and Other segments accounted for 52%, 26.6%, and 21.5% of net sales, respectively [3] - Direct sales made up 57% of total sales, while distribution accounted for 43% [3] - Geographically, revenues from the Americas, Europe, and Asia contributed 29%, 17.9%, and 53.1% to net sales, respectively [3] Operating Results - Non-GAAP gross margin contracted by 830 basis points year over year to 55.4% [4] - Non-GAAP research & development expenses increased by 750 basis points year over year to 21.2% of net sales [4] - Non-GAAP selling, general & administrative expenses rose by 490 basis points to 13.7% of net sales [4] - Non-GAAP operating margin declined to 20.5% from 41.2% in the year-ago quarter [5] Balance Sheet & Cash Flow - As of December 31, 2024, cash and short-term investments totaled $586 million, up from $286.1 million as of September 30, 2024 [6] - Total debt increased to $6.75 billion from $6.42 billion over the same period [6] - Inventory days rose to 266 from 247, exceeding the targeted range of 130-150 days [6] - Cash flow from operating activities remained stable at $43.6 million, while free cash flow dropped to $22.8 million from $304.2 million in the previous quarter [7] Shareholder Returns - Microchip returned approximately $244.6 million to shareholders through dividends in the fiscal third quarter, with a quarterly dividend of 45.5 cents per share, up 1.1% from the previous year [8] Guidance - For the fourth quarter of fiscal 2025, Microchip expects net sales between $920 million and $1 billion [9] - Non-GAAP earnings are anticipated to be between 5 cents and 15 cents per share, with a gross margin forecast of 52% to 54% [10] - Non-GAAP operating expenses are projected to be 37.7% to 40.5% of net sales, with an operating margin expected between 11.5% and 16.3% [10]

Financial Data and Key Metrics Changes - Net sales for the December quarter were $1.026 billion, down 11.8% sequentially and down 41.9% year-over-year [36] - Non-GAAP gross margins were 55.4%, including capacity underutilization charges of $42.7 million [20] - Non-GAAP net income was $107.3 million, with non-GAAP earnings per diluted share at $0.20 [21] - Inventory balance at December 31, 2024, was $1.356 billion, with 266 days of inventory, up 19 days from the previous quarter [24] - Adjusted EBITDA for the December quarter was $274.9 million, representing 26.8% of net sales [28] Business Line Data and Key Metrics Changes - Revenue from microcontroller, analog, FPGA, and other businesses all experienced sequential declines [36] - The company is focusing on reducing inventory, with a target to decrease inventory balance by approximately $250 million by the end of fiscal year 2026 [11][24] Market Data and Key Metrics Changes - The company reported broad-based weakness across all major geographies: America, Europe, and Asia [36] - Distribution inventory was at 37 days, down three days from the prior quarter, indicating a sell-through of $118 million higher than sell-in [25] Company Strategy and Development Direction - The company is implementing a nine-point plan to evaluate and improve its operations, including resizing manufacturing footprint and reducing inventory [6][10] - A focus on strengthening customer relationships, particularly with the top 1,000 customers, is a key part of the strategy [15] - The company aims to provide above-market growth as excess inventory is consumed [40] Management's Comments on Operating Environment and Future Outlook - Management noted that substantial inventory destocking has occurred, but visibility remains low, and bookings are still low [38] - The guidance for the March quarter is between $920 million and $1 billion in net sales, with non-GAAP gross margin expected between 54% and 55% [39] - Management expressed confidence in the long-term business model and operating margins, but acknowledged the need to navigate through the current inventory correction [55][56] Other Important Information - The company retired $665.5 million in convertible bonds and issued $1 billion in investment-grade bonds during the December quarter [26] - The next debt maturity is a $1.2 billion bond maturing in September 2025 [27] Q&A Session Summary Question: Where are the hotspots for inventory by end market or product? - Management indicated that inventory is high across the board, with distribution inventory getting closer to historical levels, while direct customer inventory remains elevated [47][48] Question: What is the earnings power for Microchip Technology Incorporated over the next year? - Management refrained from providing specific earnings guidance but emphasized the focus on cash flow and operational efficiency [51][54] Question: Can you walk us through the gross margin and its expected recovery? - Management stated that gross margins are expected to improve as inventory levels decrease and operational efficiencies are realized [60][63] Question: What is the company's commitment to the dividend amid cash flow challenges? - Management confirmed a commitment to maintaining the current dividend level, viewing cash flow issues as short-term [152]

Microchip Technology (MCHP) reported $1.03 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 41.9%. EPS of $0.20 for the same period compares to $1.08 a year ago.The reported revenue represents a surprise of -2.02% over the Zacks Consensus Estimate of $1.05 billion. With the consensus EPS estimate being $0.28, the EPS surprise was -28.57%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...

Microchip Technology (MCHP) came out with quarterly earnings of $0.20 per share, missing the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -28.57%. A quarter ago, it was expected that this chipmaker would post earnings of $0.43 per share when it actually produced earnings of $0.46, delivering a surprise of 6.98%.Over the last four quarters, the c ...

Investor Presentation Fiscal Third Quarter 2025 A Leading Provider of Smart, Connected and Secure Embedded Solutions SAFE HARBOR Forward Looking Statement Safe Harbor: During the course of this presentation, we will make projections or other forward-looking statements regarding the future financial performance of the company (including our guidance) or future events, including our strategy, growth drivers, industry trends, end markets, our long-term profitability, inventory management, manufacturing cost sa ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for the period ended December 31, 2024, reflect a significant decline in financial performance, including a net loss and decreased operating cash flow [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2024, total assets slightly decreased, while total liabilities increased due to higher long-term debt, and stockholders' equity declined Condensed Consolidated Balance Sheet Highlights (in millions) | Balance Sheet Item | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $2,995.8 | $3,013.0 | | **Total Assets** | $15,632.2 | $15,873.2 | | **Total Current Liabilities** | $1,330.3 | $2,519.4 | | **Long-term Debt** | $6,749.5 | $5,000.4 | | **Total Liabilities** | $9,600.7 | $9,215.4 | | **Total Stockholders' Equity** | $6,031.5 | $6,657.8 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended December 31, 2024, the company reported a net loss of $53.6 million, a stark contrast to prior-year net income, driven by a 41.9% decrease in net sales Key Performance Indicators - Three Months Ended Dec 31 (in millions, except per share data) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Sales | $1,026.0 | $1,765.7 | | Gross Profit | $561.4 | $1,120.0 | | Operating Income | $30.9 | $529.4 | | Net (Loss) Income | $(53.6) | $419.2 | | Diluted EPS | $(0.10) | $0.77 | Key Performance Indicators - Nine Months Ended Dec 31 (in millions, except per share data) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Sales | $3,431.1 | $6,308.6 | | Gross Profit | $1,966.8 | $4,205.8 | | Operating Income | $396.6 | $2,317.5 | | Net Income | $154.1 | $1,752.2 | | Diluted EPS | $0.28 | $3.19 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended December 31, 2024, net cash from operating activities significantly decreased to $692.2 million, with cash used in investing and financing activities Cash Flow Summary - Nine Months Ended Dec 31 (in millions) | Cash Flow Category | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $692.2 | $2,462.7 | | Net cash used in investing activities | $(231.8) | $(320.9) | | Net cash used in financing activities | $(194.1) | $(2,094.8) | | **Net increase in cash and cash equivalents** | **$266.3** | **$47.0** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail segment performance declines, broad sales weakness, changes in debt structure, ongoing tax disputes, and continued capital return programs - Net sales for the Semiconductor products segment decreased to **$995.0 million** for the three months ended Dec 31, 2024, from **$1,741.5 million** in the prior year period[32](index=32&type=chunk) - As of December 31, 2024, the company had approximately **$806.1 million** of deferred revenue, primarily from Long-Term Supply Agreements (LTSAs), with remaining performance obligations of approximately **$2.90 billion**[37](index=37&type=chunk)[38](index=38&type=chunk) - The company is challenging a Statutory Notice of Deficiency from the IRS for fiscal years 2007-2012 and 2014-2015, and a Notice of Assessment from the Malaysian Inland Revenue Board which could result in up to **$410.0 million** in taxes and penalties[84](index=84&type=chunk)[85](index=85&type=chunk)[88](index=88&type=chunk) - During the nine months ended December 31, 2024, the company repurchased approximately **1.0 million shares** for **$90.0 million**, with **$1.56 billion** remaining available under the repurchase program[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the significant decline in revenue and profitability to a weak macroeconomic environment, leading to broad sales declines, impacted gross margins, and reduced operating cash flow [Business and Macroeconomic Environment](index=27&type=section&id=Business%20and%20Macroeconomic%20Environment) The company faced adverse macroeconomic conditions, leading to customer backlog adjustments and the decision to close its Tempe, Arizona wafer fabrication facility for cost savings - The company is experiencing a weak macroeconomic environment, leading to customer requests to push out or cancel backlog to reduce inventory[101](index=101&type=chunk) - Announced the decision to close the Tempe, Arizona wafer fabrication facility (Fab 2), expecting annual cash savings of approximately **$90 million** once completed in the September 2025 quarter[101](index=101&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Net sales for Q3 FY25 decreased 41.9% to $1.03 billion due to broad weakness, leading to a decline in gross margin and a sharp drop in operating income Net Sales by Product Line - Q3 FY25 vs Q3 FY24 (in millions) | Product Line | Q3 FY25 | Q3 FY24 | % Change | | :--- | :--- | :--- | :--- | | Mixed-signal Microcontrollers | $533.2 | $995.2 | (46.4)% | | Analog | $272.7 | $430.6 | (36.7)% | | Other | $220.1 | $339.9 | (35.2)% | | **Total Net Sales** | **$1,026.0** | **$1,765.7** | **(41.9)%** | - Gross profit decreased primarily due to unfavorable sales volume and mix, an adverse impact of **$24.4 million** from inventory reserves, and an adverse impact of **$34.1 million** from unabsorbed capacity charges in Q3 FY25[131](index=131&type=chunk) - R&D and SG&A expenses decreased in absolute terms due to lower employee compensation costs, but increased as a percentage of net sales due to the significant revenue decline[139](index=139&type=chunk)[142](index=142&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2024, the company held $586.0 million in cash, with net cash from operations significantly decreasing, capital expenditures reduced, and capital returned to shareholders - Net cash provided by operating activities decreased significantly to **$692.2 million** for the nine months ended Dec 31, 2024, from **$2.46 billion** in the prior year period[161](index=161&type=chunk) - Capital expenditures were reduced to **$111.8 million** in the first nine months of fiscal 2025, down from **$245.0 million** in the same period last year, as most factory expansion plans are paused[164](index=164&type=chunk) - In the first nine months of fiscal 2025, the company paid **$730.9 million** in dividends and repurchased **$96.5 million** of common stock[166](index=166&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rates and inflation, with fixed-rate debt mitigating immediate interest rate exposure - As of December 31, 2024, the company's **$6.79 billion** in debt was fixed rate, limiting exposure to interest rate fluctuations[177](index=177&type=chunk) - Inflation has not had a material adverse impact on operating results in recent periods[178](index=178&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) As of December 31, 2024, the CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes in internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[179](index=179&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[180](index=180&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions, with management believing their resolution, excluding certain tax disputes, will not materially affect financial position - The company's estimate of the aggregate potential liability for legal matters that is possible but not probable is approximately **$25.0 million** in excess of amounts accrued as of December 31, 2024[80](index=80&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) The company faces numerous risks, including adverse global economic conditions, intense competition, dependence on foreign sales, cybersecurity threats, ongoing tax disputes, and substantial debt management challenges - Operating results are impacted by global economic conditions, which can reduce net sales and profitability[191](index=191&type=chunk) - The company is highly dependent on foreign sales, which accounted for approximately **75%** of net sales in the first nine months of fiscal 2025, exposing it to foreign political and economic risks[209](index=209&type=chunk) - The company continues to be a target of IT system attacks and experienced an incident in August 2024 where an unauthorized party disrupted certain servers and business operations[260](index=260&type=chunk)[261](index=261&type=chunk) - The company faces risks from ongoing tax disputes with the IRS and the Malaysian Inland Revenue Board (IRB), with the latter potentially resulting in income taxes and penalties up to **$410.0 million**[303](index=303&type=chunk)[304](index=304&type=chunk)[305](index=305&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the reporting period - None[342](index=342&type=chunk) [Other Information](index=64&type=section&id=Item%205.%20Other%20Information) During the last fiscal quarter, no officers or directors adopted, modified, or terminated a Rule 10b5-1 trading arrangement - No officers or directors adopted, modified, or terminated a Rule 10b5-1 trading plan during the last fiscal quarter[345](index=345&type=chunk) [Exhibits](index=65&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including amendments to debt agreements, certifications, and XBRL data files

[Financial Results for Third Quarter of Fiscal Year 2025](index=1&type=section&id=Financial%20Results%20for%20Third%20Quarter%20of%20Fiscal%20Year%202025) [Q3 FY2025 Financial Highlights](index=1&type=section&id=Q3%20FY2025%20Financial%20Highlights) Microchip reported a significant downturn in Q3 FY2025 with net sales of $1.026 billion and a GAAP net loss of $53.6 million Q3 FY2025 Key Financial Metrics | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Net Sales | $1,026.0 M | $1,026.0 M | | Gross Profit | $561.4 M (54.7%) | $568.8 M (55.4%) | | Operating Income | $30.9 M (3.0%) | $210.7 M (20.5%) | | Net (Loss) Income | $(53.6) M | $107.3 M | | Diluted (Loss) EPS | $(0.10) | $0.20 | - Net sales of **$1.026 billion** were down **11.8% sequentially** and **41.9%** from the $1.766 billion reported in the year-ago quarter[3](index=3&type=chunk)[4](index=4&type=chunk) - GAAP results were adversely impacted by the amortization of acquired intangible assets, while Non-GAAP results exclude this and other items[5](index=5&type=chunk)[6](index=6&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management acknowledged a challenging quarter, initiating actions to restructure manufacturing and adjust channel strategy amid an ongoing inventory correction - CEO Steve Sanghi highlighted the need for decisive actions due to revenue declining to **$1.026 billion** and inventory levels reaching **266 days**[8](index=8&type=chunk) - Key actions initiated include restructuring the manufacturing footprint, adjusting channel strategy, and intensifying customer engagement to strengthen the company's competitive position[8](index=8&type=chunk) - Management believes the **inventory destocking cycle is not yet complete**, and while March quarter bookings are running higher than December, overall levels remain low[9](index=9&type=chunk) - COO Rich Simoncic noted strong momentum for new RISC-V processors and connectivity solutions in industrial, automotive, and aerospace applications[9](index=9&type=chunk) [Business Outlook for Q4 FY2025](index=4&type=section&id=Business%20Outlook%20for%20Q4%20FY2025) The company forecasts Q4 FY2025 net sales between $920.0 million and $1.000 billion and is reducing capital expenditures Q4 FY2025 Guidance | Metric | GAAP Guidance | Non-GAAP Guidance | | :--- | :--- | :--- | | Net Sales | $920.0 M - $1.000 B | $920.0 M - $1.000 B | | Gross Profit % | 51.2% - 53.1% | 52.0% - 54.0% | | Operating Income % | (8.9)% - (2.9)% | 11.5% - 16.3% | | EPS | $(0.24) - $(0.14) | $0.05 - $0.15 | - Capital expenditures for Q4 FY2025 are expected to be approximately **$23 million**, with the full-year forecast at about **$135 million**[11](index=11&type=chunk) - The company has **paused most factory expansion actions** and reduced planned capital investments through fiscal 2026 due to the slowing macroeconomic environment[11](index=11&type=chunk) [Shareholder Returns](index=1&type=section&id=Shareholder%20Returns) Microchip continued its commitment to shareholders, distributing approximately $244.6 million through dividends in the third quarter - The company returned approximately **$244.6 million** to stockholders in the December quarter via dividends[3](index=3&type=chunk) - A quarterly dividend of **45.5 cents per share** was declared for the March quarter, an increase of **1.1%** from the year-ago quarter[3](index=3&type=chunk)[7](index=7&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The income statement reveals a sharp decline in performance, with net sales falling to $1.026 billion and a net loss of $53.6 million Statement of Operations Summary (Three Months Ended Dec 31) | (in millions) | 2024 | 2023 | | :--- | :--- | :--- | | Net sales | $1,026.0 | $1,765.7 | | Gross profit | $561.4 | $1,120.0 | | Operating income | $30.9 | $529.4 | | Net (loss) income | $(53.6) | $419.2 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets of $15.63 billion, with increased inventories and long-term debt Balance Sheet Summary (in millions) | Account | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | | Cash and short-term investments | $586.0 | $319.7 | | Inventories | $1,356.3 | $1,316.0 | | Total assets | $15,632.2 | $15,873.2 | | Long-term debt | $6,749.5 | $5,000.4 | | Stockholders' equity | $6,031.5 | $6,657.8 | [Reconciliation of GAAP to Non-GAAP Measures](index=4&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) [Explanation of Non-GAAP Measures](index=4&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures, excluding items like share-based compensation, to provide a clearer view of core operational performance - Non-GAAP adjustments primarily exclude the effects of share-based compensation, acquisition-related expenses (including intangible asset amortization, severance, and restructuring costs), and losses on debt settlement[13](index=13&type=chunk)[14](index=14&type=chunk) - Management believes these non-GAAP measures are useful to investors as they enhance the understanding of historical financial performance and comparability between periods by excluding charges that may obscure underlying operating results[17](index=17&type=chunk) [Reconciliation Tables](index=9&type=section&id=Reconciliation%20Tables) This section provides detailed reconciliations from GAAP to Non-GAAP for key financial metrics, quantifying various adjustments [Gross Profit Reconciliation](index=9&type=section&id=Gross%20Profit%20Reconciliation) Q3 FY2025 GAAP gross profit of $561.4 million was adjusted to a Non-GAAP gross profit of $568.8 million Q3 FY2025 Gross Profit Reconciliation (in millions) | Description | Amount | | :--- | :--- | | GAAP Gross Profit | $561.4 | | Share-based compensation | $7.4 | | **Non-GAAP Gross Profit** | **$568.8** | [Operating Income Reconciliation](index=11&type=section&id=Operating%20Income%20Reconciliation) GAAP operating income of $30.9 million was adjusted to a Non-GAAP figure of $210.7 million, mainly by adding back amortization Q3 FY2025 Operating Income Reconciliation (in millions) | Description | Amount | | :--- | :--- | | GAAP Operating Income | $30.9 | | Amortization of acquired intangible assets | $122.6 | | Share-based compensation expense | $49.4 | | Other adjustments | $7.8 | | **Non-GAAP Operating Income** | **$210.7** | [Net Income and EPS Reconciliation](index=13&type=section&id=Net%20Income%20and%20EPS%20Reconciliation) A GAAP net loss of $53.6 million was reconciled to a Non-GAAP net income of $107.3 million, driven by significant add-backs Q3 FY2025 Net (Loss) Income Reconciliation (in millions) | Description | Amount | | :--- | :--- | | GAAP Net (Loss) Income | $(53.6) | | Amortization of acquired intangible assets | $122.6 | | Share-based compensation expense | $49.4 | | Other non-GAAP tax adjustment | $(19.2) | | Other adjustments | $7.1 | | **Non-GAAP Net Income** | **$107.3** | [Cash Flow Reconciliation](index=13&type=section&id=Cash%20Flow%20Reconciliation) The company generated $253.4 million in free cash flow, representing 24.7% of net sales for the quarter Q3 FY2025 Free Cash Flow Calculation (in millions) | Description | Amount | | :--- | :--- | | GAAP cash flow from operations | $271.5 | | Capital expenditures | $(18.1) | | **Free cash flow** | **$253.4** | [Supplementary Information](index=15&type=section&id=Supplementary%20Information) [Conference Call Information](index=15&type=section&id=Conference%20Call%20Information) A conference call was scheduled for February 6, 2025, to discuss financial results, with a replay available - A conference call to discuss the earnings release was scheduled for **February 6, 2025**, at 5:00 p.m. ET[38](index=38&type=chunk) [Cautionary Statement on Forward-Looking Statements](index=15&type=section&id=Cautionary%20Statement%20on%20Forward-Looking%20Statements) This section contains a safe harbor statement warning that forward-looking statements involve numerous risks and uncertainties - The release contains forward-looking statements regarding business strategy, financial guidance, and operational plans, which are subject to risks and uncertainties[40](index=40&type=chunk) - Key risk factors include economic uncertainty, changes in customer demand, inventory management, competitive pricing pressure, supply chain constraints, and the impact of geopolitical conflicts[40](index=40&type=chunk)[41](index=41&type=chunk) [About Microchip](index=17&type=section&id=About%20Microchip) Microchip Technology is a leading provider of smart, connected, and secure embedded control solutions serving diverse markets - Microchip is a leading provider of smart, connected, and secure embedded control solutions, serving approximately **112,000 customers** across diverse markets[45](index=45&type=chunk)

Net sales of $1.026 billion, down 11.8% sequentially and down 41.9% from the year ago quarter. Our updated guidance provided on December 2, 2024 was net sales of $1.025 billion.On a GAAP basis: gross profit of 54.7%; operating income of $30.9 million and 3.0% of net sales; net loss of $53.6 million; and loss of $0.10 per diluted share. Our guidance provided on November 5, 2024 was for GAAP earnings (loss) per share of $(0.04) to $0.03 per diluted share. On a Non-GAAP basis: gross profit of 55.4%; operatin ...

CHANDLER, Ariz., Feb. 06, 2025 (GLOBE NEWSWIRE) -- (NASDAQ: MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today announced that its Board of Directors declared a quarterly cash dividend on its common stock of 45.5 cents per share. The dividend is payable on March 7, 2025, to stockholders of record on February 24, 2025. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its ...

CHANDLER, Ariz., Feb. 04, 2025 (GLOBE NEWSWIRE) -- Microchip Technology Incorporated, a leading provider of smart, connected and secure embedded control solutions, today announced that Victor Peng, former President of Advanced Micro Devices, Inc. (AMD), will join the Board of Directors of Microchip effective February10, 2024. Regarding Mr. Peng's appointment to the board, Microchip's President and CEO, Steve Sanghi, said, "Victor most recently served as the President of AMD, a publicly held company that des ...