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Sep 30, 2021
Microchip Q2 2022 Earnings Report
Reported record financial results due to strong revenue growth and margin expansion.
Key Takeaways
Microchip Technology reported record financial results for the second quarter of fiscal year 2022. Net sales reached a record $1.650 billion, up 26.0% year-over-year. Non-GAAP EPS also hit a record of $1.07 per diluted share.
Record net sales of $1.650 billion, up 26.0% from the year ago quarter.
GAAP EPS was $0.43 per diluted share.
Non-GAAP EPS was a record $1.07 per diluted share.
Record quarterly dividend declared of 23.2 cents per share, an increase of 6.2% sequentially and 25.9% from the year ago quarter.
Microchip
Microchip
Forward Guidance
For the third quarter of fiscal year 2022, Microchip expects net sales to be up between 4% and 8% sequentially.
Positive Outlook
- Net sales are expected to be between $1.716 billion and $1.782 billion.
- Gross margin is expected to be between 65.3% and 65.7% on a GAAP basis and 65.8% and 66.2% on a non-GAAP basis.
- Operating income is expected to be between 26.7% and 27.9% on a GAAP basis and 43.1% to 43.9% on a non-GAAP basis.
- Earnings per diluted share are expected to be $0.58 to $0.60 on a GAAP basis and $1.14 to $1.20 on a non-GAAP basis.
- Inventory days in the December 2021 quarter are expected to be in the range of 112 to 118 days.
Challenges Ahead
- GAAP Operating Expenses 37.8% to 38.6%
- Other Expense, net $63.4 to $65.8 million
- Income Tax Provision $67.2 to $90.5 million
- Capital expenditures for the quarter ending December 31, 2021 are expected to be between $70 million and $90 million.
- The forecast for GAAP tax expense excludes any unexpected tax events that may occur during the quarter, as these amounts cannot be forecasted.