Microchip Technology(US:MCHP) Globenewswire·2025-05-08 20:15Core Insights - Microchip Technology reported a revenue of $970.5 million for the quarter ended March 31, 2025, which is a decline of 5.4% sequentially and 26.8% year-over-year, but exceeded the midpoint of their guidance [3][4][6] - The company has implemented a nine-point plan to enhance operational capabilities, improve inventory management, and focus strategically on growth opportunities as market conditions evolve [3][4] - The fiscal year 2025 net sales totaled $4.402 billion, representing a decrease of 42.3% from the previous fiscal year [4][9] Financial Performance - On a GAAP basis, the gross profit margin was 51.6% for the quarter, with a net loss attributable to common stockholders of $156.8 million, equating to a loss of $0.29 per diluted share [4][7] - Non-GAAP results showed a gross profit margin of 52.0%, with net income of $61.4 million, or $0.11 per diluted share [4][8] - For the fiscal year, GAAP net loss was $2.7 million, while non-GAAP net income was $708.8 million, a decrease of 73.7% from the prior year [9][11] Strategic Initiatives - The company has successfully reduced inventory by $62.8 million, with distribution inventory days decreasing by 4 days to 33 days [3][4] - Microchip's strategic initiatives include the introduction of new products such as Switchtec PCIe switches and advanced touchscreen controllers, aimed at addressing emerging opportunities in automotive and industrial markets [3][4] Future Outlook - The company anticipates net sales for the June 2025 quarter to be between $1.02 billion and $1.07 billion, indicating a potential recovery from the current down cycle [5][14] - Capital expenditures for the quarter ending June 30, 2025, are expected to be between $20 million and $25 million, with a focus on selective expansion and research and development [16]