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Jun 30, 2024
Microchip Q1 2025 Earnings Report
Reported financial results for the first quarter of fiscal year 2025.
Key Takeaways
Microchip Technology reported Q1 fiscal year 2025 results with net sales of $1.241 billion, a 45.8% decrease from the previous year. GAAP EPS was $0.24 per diluted share, while non-GAAP EPS was $0.53 per diluted share. The company returned $315.3 million to stockholders through dividends and stock repurchases and declared a record quarterly dividend for the September quarter.
Net sales were $1.241 billion, down 6.4% sequentially and 45.8% year-over-year.
GAAP EPS was $0.24 per diluted share, while non-GAAP EPS was $0.53 per diluted share.
Returned approximately $315.3 million to stockholders through dividends and stock repurchases.
Declared a record quarterly dividend of 45.4 cents per share for the September quarter, a 10.7% increase year-over-year.
Microchip
Microchip
Forward Guidance
Microchip anticipates net sales between $1.12 billion and $1.18 billion for the September quarter. The company is selectively adding capital equipment to support expected business growth.
Positive Outlook
- Strategic cost management actions have helped maintain financial resilience and operational efficiency.
- Expanded portfolio positions the company well for sustainable, above-market growth.
- Financial health maintained through proactive cost and balance sheet management.
- Inventory positions the company well to service customers with short lead times.
- Design-in pipeline and momentum remains strong across markets.
Challenges Ahead
- Macro environment continues to be weaker than expected, resulting in an extended inventory correction period.
- Uncertain market conditions add complexity to forecasting.
- In-quarter orders remain crucial for meeting guidance.
- Customers focusing on reducing their inventory positions based on short lead times.
- Green shoots observed last quarter have not developed as robustly as anticipated.