Financial Performance - Net sales for the third quarter of fiscal 2025 were $1.026 billion, down 41.9% from $1.766 billion in the prior year's third quarter[4]. - GAAP net loss was $53.6 million, or $0.10 per diluted share, compared to a net income of $419.2 million, or $0.77 per diluted share, in the prior year[5]. - Non-GAAP net income was $107.3 million, or $0.20 per diluted share, down from $592.7 million, or $1.08 per diluted share, in the prior year[6]. - Net sales for the three months ended December 31, 2024, were $1,026.0 million, a decrease from $1,765.7 million in the same period of 2023, representing a decline of 42%[23]. - Operating income for the three months ended December 31, 2024, was $30.9 million, significantly lower than $529.4 million in the same period of 2023, reflecting a decrease in operating income margin from 30.0% to 3.0%[31]. - Reported net loss for Q3 2025 was $53.6 million compared to a net income of $419.2 million in Q3 2024[35]. - Non-GAAP net income for Q3 2025 was $107.3 million, down from $592.7 million in Q3 2024[35]. Dividends and Shareholder Returns - The company returned approximately $244.6 million to stockholders through dividends in the December quarter[3]. - A quarterly dividend of 45.5 cents per share was declared, representing a 1.1% increase from the year ago quarter[7]. Inventory and Operational Adjustments - Inventory levels reached 266 days, prompting decisive steps to realign the business[8]. - Company emphasizes focus on inventory management and shareholder returns amidst market uncertainties[39]. Future Guidance - The company expects net sales guidance for the March quarter to be between $920.0 million and $1.000 billion[11]. - Net sales guidance for Q4 2025 is projected between $920.0 million and $1.000 billion[39]. - Gross profit margin for the March quarter is expected to be between 51.2% and 53.1%[11]. - Operating income for the March quarter is projected to be between $(128.5) million and $(79.4) million on a GAAP basis[11]. Research and Development - Research and development expenses for the three months ended December 31, 2024, were $246.2 million, which is 24.0% of net sales, compared to $266.0 million or 15.1% of net sales in 2023[27]. - Non-GAAP research and development expenses for the three months ended December 31, 2024, were $217.4 million, representing 21.2% of net sales, compared to $241.5 million or 13.7% of net sales in 2023[27]. - Company plans to selectively expand production capacity and invest in research and development equipment[39]. Cash Flow and Debt - GAAP cash flow from operations for Q3 2025 was $271.5 million, a decrease from $853.3 million in Q3 2024[36]. - Free cash flow for Q3 2025 was $253.4 million, compared to $793.8 million in Q3 2024[36]. - Long-term debt increased to $6,749.5 million as of December 31, 2024, compared to $5,000.4 million as of March 31, 2024[25].
Microchip Technology Incorporated(MCHPP) - 2025 Q3 - Quarterly Results