Financial Performance - Net sales for the second quarter of fiscal 2025 were $1.164 billion, down 6.2% sequentially and down 48.4% from $2.254 billion in the prior year's second fiscal quarter[3][4]. - GAAP net income was $78.4 million, or $0.14 per diluted share, down from $666.6 million, or $1.21 per diluted share, in the prior year's second fiscal quarter[5]. - Non-GAAP net income was $250.2 million, or $0.46 per diluted share, down from $889.3 million, or $1.62 per diluted share, in the prior year's second fiscal quarter[6]. - Operating income for the three months ended September 30, 2024, was $146.6 million, significantly lower than $885.0 million in the same period of 2023[23][31]. - Reported net income for Q2 2025 was $78.4 million, down from $666.6 million in Q2 2024[35]. - Non-GAAP net income for Q2 2025 was $250.2 million, compared to $889.3 million in Q2 2024[35]. - GAAP cash flow from operations for Q2 2025 was $43.6 million, significantly lower than $616.2 million in Q2 2024[36]. - Free cash flow for Q2 2025 was $22.8 million, down from $541.8 million in Q2 2024[36]. Shareholder Returns - The company returned approximately $261.0 million to stockholders through dividends of $243.7 million and share repurchases of $17.3 million during the September quarter[3]. - A record quarterly dividend of 45.5 cents per share was declared, representing a 3.6% increase from the year ago quarter[7]. - The company has cumulatively repurchased $2.444 billion, or 31.4 million shares, over the last twelve quarters under its stock buyback program[3]. Sales and Revenue Outlook - For the December quarter, the company expects net sales between $1.025 billion and $1.095 billion, reflecting ongoing inventory destocking and macro uncertainties[9][11]. - The company expects net sales for the December quarter to be between $1.025 billion and $1.095 billion[39]. Profit Margins - The gross profit margin on a GAAP basis was 57.4%, while the non-GAAP gross profit margin was 59.5%[4]. - Gross profit for the three months ended September 30, 2024, was $668.5 million, resulting in a gross profit margin of 57.4%, compared to 67.8% in 2023[23][26]. - Non-GAAP gross profit for the three months ended September 30, 2024, was $692.9 million, with a non-GAAP gross profit margin of 59.5%[26]. Expenses and Costs - Research and development expenses for the three months ended September 30, 2024, were $240.7 million, representing 20.7% of net sales, up from 13.0% in 2023[27]. - GAAP income tax provision for Q2 2025 was $13.1 million, compared to $167.0 million in Q2 2024[34]. - Non-GAAP income tax provision for Q2 2025 was $37.3 million, down from $147.1 million in Q2 2024[34]. - GAAP other expense, net for Q2 2025 was $(55.1) million, compared to $(51.4) million in Q2 2024[32]. Debt and Assets - Total current assets as of September 30, 2024, were $2,905.5 million, a decrease from $3,013.0 million as of March 31, 2024[25]. - Long-term debt as of September 30, 2024, was $4,476.6 million, down from $5,000.4 million as of March 31, 2024[25]. Strategic Focus - The company is focusing on its Total System Solutions approach, which is driving adoption in AI-accelerated servers in data center markets[9]. - The company is maintaining strong cost discipline and operational readiness for anticipated market recovery[39]. Cybersecurity Incident - The company reported a cybersecurity incident expense of $20.1 million for the three months ended September 30, 2024[26][31].
Microchip Technology Incorporated(MCHPP) - 2025 Q2 - Quarterly Results