For the quarter ended
- Record net sales of
$2.233 billion , up 2.9% sequentially and up 21.1% from the year ago quarter. The midpoint of our guidance provided onFebruary 2, 2023 was net sales of $2.224 billion. - On a GAAP basis: record gross margin of 68.0%; record operating income of
$848.0 million and a record 38.0% of net sales; record net income of$604.0 million ; and record EPS of$1.09 per diluted share. Our guidance provided onFebruary 2, 2023 was for GAAP EPS of $1.07 to $1.09 per diluted share. - On a Non-GAAP basis: record gross margin of 68.3%; record operating income of
$1.064 billion and a record 47.6% of net sales; record net income of$907.8 million and record EPS of$1.64 per diluted share. Our guidance provided onFebruary 2, 2023 was for Non-GAAP EPS of $1.61 to $1.63 per diluted share. - Paid down
$153.0 million of debt in theMarch 2023 quarter. Cumulatively paid down$6.3 billion of debt over the last 19 quarters. Reduced net leverage to 1.45x. - Returned approximately
$469 .8 million to shareholders in the March quarter through dividends of$195.9 million and the repurchase of approximately$273 .9 million, or 3.3 million shares of our common stock, at an average price of$82.55 per share under our previously announced$4.0 billion stock buyback program. Cumulatively repurchased approximately$1 .371 billion, or 18.5 million shares, over the last six quarters. - Record quarterly dividend declared today for the June quarter of
38.3 cents per share, an increase of 38.8% from the year ago quarter.
For fiscal year 2023
- Record net sales of
$8.439 billion . - On a GAAP basis: record gross margins of 67.5%; record operating income of
$3.116 billion ; net income of$2.238 billion , adversely impacted by purchase accounting adjustments associated with our previous acquisitions and a$8.3 million loss on debt settlement associated with our debt refinancing activities; and record EPS of$4.02 per diluted share. - On a Non-GAAP basis: record gross margins of 67.8%; record operating income of
$3.960 billion and a record 46.9% of net sales; record net income of$3.353 billion and record EPS of$6.02 per diluted share. - Paid down
$1 .371 billion of total debt and returned$1 .641 billion to shareholders through dividends and share repurchases.
Three Months Ended | Twelve Months Ended | |||||||||||
Net sales | ||||||||||||
GAAP | % | Non-GAAP(2) | % | GAAP | % | Non-GAAP(2) | % | |||||
Gross margin | 68.0% | 68.3% | 67.5% | 67.8% | ||||||||
Operating income | 38.0% | 47.6% | 36.9% | 46.9% | ||||||||
Other expense | ||||||||||||
Income tax provision | ||||||||||||
Net income | 27.1% | 40.7% | 26.5% | 39.7% | ||||||||
Net income per diluted share |
(1) In millions, except per share amounts and percentages of net sales.
(2) See the "Use of Non-GAAP Financial Measures" section of this release.
Net sales for the fourth quarter of fiscal 2023 were a record
GAAP net income for the fourth quarter of fiscal 2023 was
Non-GAAP net income for the fourth quarter of fiscal 2023 was a record at
Net sales for the fiscal year ended
GAAP net income for the fiscal year ended
Non-GAAP net income for the fiscal year ended
Microchip announced today that its Board of Directors declared a record quarterly cash dividend on its common stock of
"We are very pleased with our strong financial and operational performance throughout fiscal 2023 as we continued to deliver on our Microchip 3.0 strategy," said
Microchip's Highlights for the Quarter Ended
- Announced an
$800 million , multi-year initiative aiming to triple semiconductor production at ourOregon facility. The increased staffing and capital equipment investments are on track to meet expanded production goals. - Revealed plans to invest
$880 million to expand our Silicon Carbide (SiC) and Silicon (Si) capacity in ourColorado facility. Ramping up production at theColorado Springs fabrication campus will enable us to respond to growing semiconductor demand across a wide swath of industries. - Introduced a new MPLAB® SiC power simulator that allows customers to test our SiC power solutions in their design phase. The PLECS-based tool quickly evaluates solutions across power-switching topologies before committing design to hardware.
- Announced an all-in-one hybrid power drive module designed for electric aviation applications to reduce development time and weight. The highly integrated and configurable three-phase power module is the first variant of the new family and can be customized using silicon carbide or silicon, reducing power solution size and weight for electric aircraft.
- Expanded our secure authentication IC portfolio with six new security-focused products for accessories and disposables aimed to optimize and scale embedded security across a wide range of industries including IoT, consumer, industrial and automotive.
- Announced an integrated development kit to speed up design of FPGA-based satellite systems. Developers can prototype with the same low-power, high-throughput Radiation-Tolerant (RT) FPGA that will be used in spaceflight.
- Released a radiation-tolerant power management device targeting Low-Earth Orbit (LEO) space applications. Space system developers can quickly develop prototypes and final designs for their power management system with a radiation-tolerant device based on a familiar plastic commercial-off-the-shelf (COTS) device.
- Launched Single Pair Ethernet (SPE) 10BASE-T1S and 100BASE-T1 devices to transform IIoT at the edge and in higher-speed applications. This SPE offering can reduce cost and complexity of IIoT edge devices while supporting higher-speed Ethernet-everywhere architectures and applications.
- Introduced a Power over Ethernet (PoE) switch that adds advanced network and security features for outdoor applications. The PDS-204GCO is the next-generation solution of the popular PDS-104GO and also offers easy installation and environmental protection.
- Partnered with the
University of New Hampshire InterOperability Laboratory (UNH-IOL) to expand 1000BASE-T1 PCS and PHY-C automotive compliance testing. We created a development test platform that is compatible with OPEN Alliance Test Plans for 1000BASE-T1 conformance testing to move the automotive industry closer to having complete compliance for chip manufacturers. UNH-IOL is an independent provider of broad-based testing and standards conformance services for the networking industry.
First Quarter Fiscal Year 2024 Outlook:
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
Microchip Consolidated Guidance | |||
GAAP | Non-GAAP Adjustments | Non-GAAP(1) | |
Gross Margin | 68.0% to 68.2% | 68.3% to 68.5% | |
Operating Expenses(2) | 28.8% to 29.3% | 20.1% to 20.5% | |
Operating Income | 38.7% to 39.4% | 47.8% to 48.4% | |
Other Expense, net | ( | ||
Income Tax Provision | |||
Net Income | |||
Diluted Common Shares Outstanding | Approximately 551.8 to 552.2 million shares | Approximately 551.8 to 552.2 million shares | |
Earnings per Diluted Share |
(1) See the "Use of Non-GAAP Financial Measures" section of this release for information regarding our non-GAAP guidance.
(2) We are not able to estimate the amount of certain Special Charges and Other, net that may be incurred during the quarter ending
(3) The forecast for GAAP tax expense excludes any unexpected tax events that may occur during the quarter, as these amounts cannot be forecasted.
(4) Represents the expected cash tax rate for fiscal 2024, excluding any transition tax payments associated with the Tax Cuts and Jobs Act.
- Microchip's inventory days in the
June 2023 quarter are expected to be in the range of 159 to 164 days, compared to 169 days onMarch 31, 2023 . Our actual inventory level will depend on the inventory that our distributors decide to hold to support their customers, overall demand for our products, and our production levels. - Capital expenditures for the quarter ending
June 30, 2023 are expected to be between$100 million and$120 million . Capital expenditures for all of fiscal 2024 are expected to be between$300 million and$400 million . We continue to add capital equipment to maintain, grow and operate our internal manufacturing capabilities to support the expected growth of our business.
Under the GAAP revenue recognition standard, which we adopted on
Use of Non-GAAP Financial Measures: Our non-GAAP adjustments, where applicable, include the effect of share-based compensation, expenses related to our acquisition activities (including intangible asset amortization, severance, and other restructuring costs, and legal and other general and administrative expenses associated with acquisitions including legal fees and expenses for litigation and investigations related to our
We are required to estimate the cost of certain forms of share-based compensation, including employee stock options, restricted stock units, and our employee stock purchase plan, and to record a commensurate expense in our income statement. Share-based compensation expense is a non-cash expense that varies in amount from period to period and is affected by the price of our stock at the date of grant. The price of our stock is affected by market forces that are difficult to predict and are not within the control of management. Our other non-GAAP adjustments are either non-cash expenses, unusual or infrequent items, or other expenses related to transactions. Management excludes all of these items from its internal operating forecasts and models.
We are using non-GAAP operating expenses in dollars, including non-GAAP research and development expenses and non-GAAP selling, general and administrative expenses, non-GAAP other expense, net, and non-GAAP income tax rate, which exclude the items noted above, as applicable, to permit additional analysis of our performance.
Management believes these non-GAAP measures are useful to investors because they enhance the understanding of our historical financial performance and comparability between periods. Many of our investors have requested that we disclose this non-GAAP information because they believe it is useful in understanding our performance as it excludes non-cash and other charges that many investors feel may obscure our underlying operating results. Management uses non-GAAP measures to manage and assess the profitability of our business and for compensation purposes. We also use our non-GAAP results when developing and monitoring our budgets and spending. Our determination of these non-GAAP measures might not be the same as similarly titled measures used by other companies, and it should not be construed as a substitute for amounts determined in accordance with GAAP. There are limitations associated with using these non-GAAP measures, including that they exclude financial information that some may consider important in evaluating our performance. Management compensates for this by presenting information on both a GAAP and non-GAAP basis for investors and providing reconciliations of the GAAP and non-GAAP results.
Generally, gross margin fluctuates over time, driven primarily by the mix of products sold and licensing revenue; variances in manufacturing yields; fixed cost absorption; wafer fab loading levels; costs of wafers from foundries; inventory reserves; pricing pressures in our non-proprietary product lines; and competitive and economic conditions. Operating expenses fluctuate over time, primarily due to net sales and profit levels.
Diluted Common Shares Outstanding can vary for, among other things, the trading price of our common stock, the exercise of options or vesting of restricted stock units, the potential for incremental dilutive shares from our convertible debentures (additional information regarding our share count is available in the investor relations section of our website under the heading "Supplemental Financial Information"), and repurchases or issuances of shares of our common stock. The diluted common shares outstanding presented in the guidance table above assumes an average Microchip stock price in the
MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net sales | $ | 2,232.7 | $ | 1,844.2 | $ | 8,438.7 | $ | 6,820.9 | |||||||
Cost of sales | 713.4 | 623.8 | 2,740.8 | 2,371.3 | |||||||||||
Gross profit | 1,519.3 | 1,220.4 | 5,697.9 | 4,449.6 | |||||||||||
Research and development | 298.3 | 259.1 | 1,118.3 | 989.1 | |||||||||||
Selling, general and administrative | 203.5 | 187.2 | 797.7 | 718.9 | |||||||||||
Amortization of acquired intangible assets | 167.4 | 215.5 | 669.9 | 862.5 | |||||||||||
Special charges (income) and other, net | 2.1 | 9.1 | (4.0 | ) | 29.5 | ||||||||||
Operating expenses | 671.3 | 670.9 | 2,581.9 | 2,600.0 | |||||||||||
Operating income | 848.0 | 549.5 | 3,116.0 | 1,849.6 | |||||||||||
Other expense, net | (46.2 | ) | (70.3 | ) | (206.3 | ) | (367.1 | ) | |||||||
Income before income taxes | 801.8 | 479.2 | 2,909.7 | 1,482.5 | |||||||||||
Income tax provision | 197.8 | 41.3 | 672.0 | 197.0 | |||||||||||
Net income | $ | 604.0 | $ | 437.9 | $ | 2,237.7 | $ | 1,285.5 | |||||||
Basic net income per common share | $ | 1.10 | $ | 0.79 | $ | 4.07 | $ | 2.33 | |||||||
Diluted net income per common share | $ | 1.09 | $ | 0.77 | $ | 4.02 | $ | 2.27 | |||||||
Basic common shares outstanding | 546.9 | 555.5 | 550.4 | 552.3 | |||||||||||
Diluted common shares outstanding | 553.9 | 565.1 | 557.3 | 565.9 | |||||||||||
MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES | |||||
CONSOLIDATED BALANCE SHEETS | |||||
(in millions) | |||||
ASSETS | |||||
2023 | 2022 | ||||
Cash and short-term investments | $ | 234.0 | $ | 319.4 | |
Accounts receivable, net | 1,305.3 | 1,072.6 | |||
Inventories | 1,324.9 | 854.4 | |||
Other current assets | 205.1 | 206.2 | |||
Total current assets | 3,069.3 | 2,452.6 | |||
Property, plant and equipment, net | 1,177.9 | 967.9 | |||
Other assets | 12,123.1 | 12,779.0 | |||
Total assets | $ | 16,370.3 | $ | 16,199.5 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Accounts payable and accrued liabilities | $ | 1,720.4 | $ | 1,399.0 | |
Current portion of long-term debt | 1,398.2 | — | |||
Total current liabilities | 3,118.6 | 1,399.0 | |||
Long-term debt | 5,041.7 | 7,687.4 | |||
Long-term income tax payable | 705.7 | 704.6 | |||
Long-term deferred tax liability | 42.7 | 39.8 | |||
Other long-term liabilities | 948.0 | 473.9 | |||
Stockholders' equity | 6,513.6 | 5,894.8 | |||
Total liabilities and stockholders' equity | $ | 16,370.3 | $ | 16,199.5 | |
MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(in millions, except per share amounts and percentages; unaudited)
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT
Three Months Ended | Twelve Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Gross profit, as reported | $ | 1,519.3 | $ | 1,220.4 | $ | 5,697.9 | $ | 4,449.6 | |||||||
Share-based compensation expense | 6.1 | 8.0 | 27.2 | 34.3 | |||||||||||
Non-GAAP gross profit | $ | 1,525.4 | $ | 1,228.4 | $ | 5,725.1 | $ | 4,483.9 | |||||||
GAAP gross profit percentage | 68.0 | % | 66.2 | % | 67.5 | % | 65.2 | % | |||||||
Non-GAAP gross profit percentage | 68.3 | % | 66.6 | % | 67.8 | % | 65.7 | % | |||||||
RECONCILIATION OF GAAP RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES
Three Months Ended | Twelve Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Research and development expenses, as reported | $ | 298.3 | $ | 259.1 | $ | 1,118.3 | $ | 989.1 | |||||||
Share-based compensation expense | (22.0 | ) | (21.8 | ) | (83.1 | ) | (97.9 | ) | |||||||
Acquisition-related | (0.2 | ) | (0.2 | ) | (0.8 | ) | (0.8 | ) | |||||||
Non-GAAP research and development expenses | $ | 276.1 | $ | 237.1 | $ | 1,034.4 | $ | 890.4 | |||||||
GAAP research and development expenses as a percentage of net sales | 13.4 | % | 14.0 | % | 13.3 | % | 14.5 | % | |||||||
Non-GAAP research and development expenses as a percentage of net sales | 12.4 | % | 12.9 | % | 12.3 | % | 13.1 | % | |||||||
RECONCILIATION OF GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSES TO NON-GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Three Months Ended | Twelve Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Selling, general and administrative expenses, as reported | $ | 203.5 | $ | 187.2 | $ | 797.7 | $ | 718.9 | |||||||
Share-based compensation expense | (15.8 | ) | (17.2 | ) | (60.1 | ) | (78.0 | ) | |||||||
Acquisition-related | (0.6 | ) | (0.8 | ) | (2.0 | ) | (4.1 | ) | |||||||
Professional services associated with certain legal matters | (1.5 | ) | (2.8 | ) | (4.7 | ) | (8.4 | ) | |||||||
IT security remediation | — | — | — | (0.2 | ) | ||||||||||
Non-GAAP selling, general and administrative expenses | $ | 185.6 | $ | 166.4 | $ | 730.9 | $ | 628.2 | |||||||
GAAP selling, general and administrative expenses as a percentage of net sales | 9.1 | % | 10.2 | % | 9.5 | % | 10.5 | % | |||||||
Non-GAAP selling, general and administrative expenses as a percentage of net sales | 8.3 | % | 9.0 | % | 8.7 | % | 9.2 | % | |||||||
RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
Three Months Ended | Twelve Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Operating expenses, as reported | $ | 671.3 | $ | 670.9 | $ | 2,581.9 | $ | 2,600.0 | |||||||
Share-based compensation expense | (37.8 | ) | (39.0 | ) | (143.2 | ) | (175.9 | ) | |||||||
Acquisition-related | (0.8 | ) | (1.0 | ) | (2.8 | ) | (4.9 | ) | |||||||
Professional services associated with certain legal matters | (1.5 | ) | (2.8 | ) | (4.7 | ) | (8.4 | ) | |||||||
IT security remediation | — | — | — | (0.2 | ) | ||||||||||
Amortization of acquired intangible assets | (167.4 | ) | (215.5 | ) | (669.9 | ) | (862.5 | ) | |||||||
Special charges (income) and other, net | (2.1 | ) | (9.1 | ) | 4.0 | (29.5 | ) | ||||||||
Non-GAAP operating expenses | $ | 461.7 | $ | 403.5 | $ | 1,765.3 | $ | 1,518.6 | |||||||
GAAP operating expenses as a percentage of net sales | 30.1 | % | 36.4 | % | 30.6 | % | 38.1 | % | |||||||
Non-GAAP operating expenses as a percentage of net sales | 20.7 | % | 21.9 | % | 20.9 | % | 22.3 | % | |||||||
RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP OPERATING INCOME
Three Months Ended | Twelve Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Operating income, as reported | $ | 848.0 | $ | 549.5 | $ | 3,116.0 | $ | 1,849.6 | |||||||
Share-based compensation expense | 43.9 | 47.0 | 170.4 | 210.2 | |||||||||||
Acquisition-related | 0.8 | 1.0 | 2.8 | 4.9 | |||||||||||
Professional services associated with certain legal matters | 1.5 | 2.8 | 4.7 | 8.4 | |||||||||||
IT security remediation | — | — | — | 0.2 | |||||||||||
Amortization of acquired intangible assets | 167.4 | 215.5 | 669.9 | 862.5 | |||||||||||
Special charges (income) and other, net | 2.1 | 9.1 | (4.0 | ) | 29.5 | ||||||||||
Non-GAAP operating income | $ | 1,063.7 | $ | 824.9 | $ | 3,959.8 | $ | 2,965.3 | |||||||
GAAP operating income as a percentage of net sales | 38.0 | % | 29.8 | % | 36.9 | % | 27.1 | % | |||||||
Non-GAAP operating income as a percentage of net sales | 47.6 | % | 44.7 | % | 46.9 | % | 43.5 | % | |||||||
RECONCILIATION OF GAAP OTHER EXPENSE, NET TO NON-GAAP OTHER EXPENSE, NET
Three Months Ended | Twelve Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Other expense, net, as reported | $ | (46.2 | ) | $ | (70.3 | ) | $ | (206.3 | ) | $ | (367.1 | ) | |||
Loss on settlement of debt | — | 11.8 | 8.3 | 113.4 | |||||||||||
Non-cash other expense, net | — | 8.4 | 0.1 | 38.6 | |||||||||||
Gains on equity investments | — | — | — | (5.5 | ) | ||||||||||
Non-GAAP other expense, net | $ | (46.2 | ) | $ | (50.1 | ) | $ | (197.9 | ) | $ | (220.6 | ) | |||
GAAP other expense, net, as a percentage of net sales | (2.1) % | (3.8) % | (2.4) % | (5.4) % | |||||||||||
Non-GAAP other expense, net, as a percentage of net sales | (2.1) % | (2.7) % | (2.3) % | (3.2) % | |||||||||||
RECONCILIATION OF GAAP INCOME TAX PROVISION TO NON-GAAP INCOME TAX PROVISION
Three Months Ended | Twelve Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Income tax provision as reported | $ | 197.8 | $ | 41.3 | $ | 672.0 | $ | 197.0 | |||||||
Income tax rate, as reported | 24.7 | % | 8.6 | % | 23.1 | % | 13.3 | % | |||||||
Other non-GAAP tax adjustment | (88.1 | ) | (31.1 | ) | (263.2 | ) | (63.1 | ) | |||||||
Non-GAAP income tax provision | $ | 109.7 | $ | 10.2 | $ | 408.8 | $ | 133.9 | |||||||
Non-GAAP income tax rate | 10.8 | % | 1.3 | % | 10.9 | % | 4.9 | % | |||||||
RECONCILIATION OF GAAP NET INCOME AND GAAP DILUTED NET INCOME PER COMMON SHARE TO NON-GAAP NET INCOME AND NON-GAAP DILUTED NET INCOME PER COMMON SHARE
Three Months Ended | Twelve Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net income, as reported | $ | 604.0 | $ | 437.9 | $ | 2,237.7 | $ | 1,285.5 | |||||||
Share-based compensation expense | 43.9 | 47.0 | 170.4 | 210.2 | |||||||||||
Acquisition-related | 0.8 | 1.0 | 2.8 | 4.9 | |||||||||||
Professional services associated with certain legal matters | 1.5 | 2.8 | 4.7 | 8.4 | |||||||||||
IT security remediation | — | — | — | 0.2 | |||||||||||
Amortization of acquired intangible assets | 167.4 | 215.5 | 669.9 | 862.5 | |||||||||||
Special charges (income) and other, net | 2.1 | 9.1 | (4.0 | ) | 29.5 | ||||||||||
Loss on settlement of debt | — | 11.8 | 8.3 | 113.4 | |||||||||||
Non-cash other expense, net | — | 8.4 | 0.1 | 38.6 | |||||||||||
Gains on equity investments | — | — | — | (5.5 | ) | ||||||||||
Other non-GAAP tax adjustment | 88.1 | 31.1 | 263.2 | 63.1 | |||||||||||
Non-GAAP net income | $ | 907.8 | $ | 764.6 | $ | 3,353.1 | $ | 2,610.8 | |||||||
GAAP net income as a percentage of net sales | 27.1 | % | 23.7 | % | 26.5 | % | 18.8 | % | |||||||
Non-GAAP net income as a percentage of net sales | 40.7 | % | 41.5 | % | 39.7 | % | 38.3 | % | |||||||
Diluted net income per common share, as reported | $ | 1.09 | $ | 0.77 | $ | 4.02 | $ | 2.27 | |||||||
Non-GAAP diluted net income per common share | $ | 1.64 | $ | 1.35 | $ | 6.02 | $ | 4.61 | |||||||
Diluted common shares outstanding, as reported | 553.9 | 565.1 | 557.3 | 565.9 | |||||||||||
Diluted common shares outstanding non-GAAP | 553.9 | 565.1 | 557.3 | 565.9 | |||||||||||
RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH FLOW
Three Months Ended | Twelve Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
GAAP cash flow from operations, as reported | $ | 709.5 | $ | 747.7 | $ | 3,621.0 | $ | 2,842.7 | |||||||
Capital expenditures | (112.7 | ) | (114.6 | ) | (486.2 | ) | (370.1 | ) | |||||||
Free cash flow | $ | 596.8 | $ | 633.1 | $ | 3,134.8 | $ | 2,472.6 | |||||||
GAAP cash flow from operations as a percentage of net sales | 31.8 | % | 40.5 | % | 42.9 | % | 41.7 | % | |||||||
Free cash flow as a percentage of net sales | 26.7 | % | 34.3 | % | 37.1 | % | 36.3 | % | |||||||
Microchip will host a conference call today,
A telephonic replay of the conference call will be available at approximately
Cautionary Statement:
The statements in this release relating to positioning ourselves for a soft landing as lead times continue to improve for many of our products, helping customers with their inventory positions, that we see very little obsolescence risk with the higher inventory balances, that we believe we are well-positioned to respond to growth when the macro environment strengthens, that our total systems solutions strategy combined with our focus on key market megatrends is driving a robust pipeline of new-design opportunities, that we plan to introduce an exciting lineup of innovative new products throughout fiscal 2024 to address the growing demand for our solutions, actively managing the working capital requirements for the business, actions in motion to reduce inventory on our balance sheet by 5 to 10 days in the June quarter, with further reductions planned in fiscal 2024, that our operating model has been, and remains, a strong cash generator and continues to demonstrate significant operating leverage as we execute on our Microchip 3.0 strategy, targeting to return
For a detailed discussion of these and other risk factors, please refer to Microchip's filings on Forms 10-K and 10-
Stockholders of Microchip are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this
About Microchip:
Note: The Microchip name and logo, the Microchip logo, and MPLAB are registered trademarks of
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