Core Viewpoint - Microchip Technology Incorporated reported strong sequential revenue growth of 10.8% to approximately $1.0755 billion for the quarter ended June 30, 2025, indicating a positive trend as the company emerges from an industry downturn [2][4]. Financial Performance - Net sales for the quarter were $1.0755 billion, a 10.8% increase sequentially but a 13.4% decline year-over-year from $1.241 billion [4][6]. - On a GAAP basis, the gross profit was 53.6%, with an operating income of $32.1 million, representing 3.0% of net sales, and a net loss attributable to common stockholders of $46.4 million, or a loss of $0.09 per diluted share [4][7]. - Non-GAAP results showed a gross profit of 54.3%, operating income of $222.3 million (20.7% of net sales), and net income of $154.7 million, translating to an EPS of $0.27 per diluted share [4][8]. Inventory Management - The company achieved a significant inventory reduction of $124.4 million during the June quarter, with distribution inventory days decreasing by 4 days to 29 days and overall inventory days on the balance sheet declining to 214 days [2][4]. Strategic Initiatives - Microchip's Total System Solutions strategy is securing design wins with tier-one cloud providers for AI infrastructure and defense applications, aligning with global defense spending trends [2][4]. - The company anticipates September quarter net sales of approximately $1.130 billion, representing about 5.1% sequential growth at the midpoint, supported by a backlog running ahead of June quarter levels [2][4]. Dividend and Shareholder Returns - Approximately $245.5 million was returned to common stockholders through dividends in the June quarter, with a quarterly dividend of 45.5 cents per share declared for the September quarter [4][9]. Future Outlook - The company expects continued operational leverage to support sustained margin expansion and enhanced cash flow generation as demand conditions improve [2][4]. - Capital expenditures for the quarter ending September 30, 2025, are projected to be between $35 million and $40 million, with total capital expenditures for fiscal 2026 expected to be at or below $100 million [15].