Microchip Q1 2025 Earnings Report
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.