Microchip Technology(US:MCHP)2025-05-08 20:17Financial Performance - Net sales for the fourth quarter of fiscal 2025 were $970.5 million, a decline of 26.8% from $1.326 billion in the prior year's fourth quarter[8] - On a GAAP basis, the net loss attributable to common stockholders for the fourth quarter was $156.8 million, or $0.29 per diluted share, compared to a net income of $154.7 million, or $0.28 per diluted share, in the prior year[9] - Non-GAAP net income for the fourth quarter was $61.4 million, or $0.11 per diluted share, down from $310.3 million, or $0.57 per diluted share, in the prior year's fourth quarter[10] - For the fiscal year ended March 31, 2025, net sales were $4.402 billion, a decrease of 42.3% from $7.634 billion in the prior fiscal year[11] - Non-GAAP net income for the fiscal year was $708.8 million, a decrease of 73.7% from $2.698 billion in the prior fiscal year[13] Dividends and Shareholder Returns - The company returned approximately $244.8 million to stockholders in the March quarter through dividends[5] - The company plans to pay a quarterly dividend of 45.5 cents per share on June 5, 2025[14] - The company is committed to maintaining its dividend while returning to growth[1] Future Expectations - The company expects net sales for the June 2025 quarter to be between $1.02 billion and $1.07 billion[7] - Microchip expects net sales for the June 2025 quarter to be between $1.020 billion and $1.070 billion[1] - The company expects diluted common shares outstanding to average between 538.2 million and 544.8 million in the June 2025 quarter[24] Operational Performance - The company achieved its first positive book-to-bill ratio in nearly three years during the March 2025 quarter[7] - Cash and short-term investments increased to $771.7 million as of March 31, 2025, up from $319.7 million a year earlier[29] - Total assets decreased to $15,374.6 million as of March 31, 2025, down from $15,873.2 million in the previous year[29] - Long-term debt increased to $5,630.4 million as of March 31, 2025, compared to $5,000.4 million in the previous year[29] Cost Management and Expenses - Gross profit for Q4 2025 was $501.1 million, down 36.6% from $789.9 million in Q4 2024, resulting in a GAAP gross profit percentage of 51.6%[30] - Research and development expenses for Q4 2025 were $255.2 million, an increase of 6.5% from $240.3 million in Q4 2024, representing 26.3% of net sales[31] - Operating loss for Q4 2025 was $100.3 million, compared to an operating income of $253.5 million in Q4 2024[27] - Total operating expenses as a percentage of net sales for Q1 2025 were 62.0%, up from 40.5% in Q1 2024, indicating increased cost pressures[34] - Reported operating expenses for Q1 2025 were $601.4 million, up from $536.4 million in Q1 2024, while total operating expenses for the twelve months ended March 31, 2025, were $2,171.6 million, down from $2,424.7 million in the previous year[34] Strategic Initiatives - The company plans to continue focusing on new product development and market expansion strategies to drive future growth[43] - The company is focused on enhancing operational capabilities through efficient manufacturing and improved inventory management[1] - Microchip is well-positioned to capitalize on growth opportunities in automotive, industrial, and e-mobility markets[1] - The company plans to selectively expand production capacity and add research and development equipment[1] - Microchip's strategic initiatives continue to deliver value across markets[1] - The company emphasizes the importance of its long-term supply assurance program[1] - Microchip is monitoring the impact of the CHIPS Act on increasing manufacturing capacity in the industry[1] Conference and Communication - A conference call was held on May 8, 2025, to discuss the financial results, with a replay available until June 6, 2025[44] - Strategic financial moves and disciplined cost management are aimed at navigating current market challenges[1] - Microchip serves approximately 109,000 customers across various markets including industrial, automotive, and consumer[1]