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Sep 30, 2022
Microchip Q2 2023 Earnings Report
Reported record financial results, driven by broad-based strength and disciplined execution.
Key Takeaways
Microchip Technology Incorporated announced record financial results for the second quarter of fiscal year 2023. Record net sales were $2.073 billion, up 5.6% sequentially and up 25.7% from the year ago quarter. On a GAAP basis, the company reported record gross margin, operating income, net income, and EPS. The company also declared a record quarterly dividend of 32.8 cents per share.
Record net sales of $2.073 billion, up 5.6% sequentially and up 25.7% from the year ago quarter.
Record GAAP gross margin of 67.4%, operating income of $755.1 million, net income of $546.2 million, and EPS of $0.98 per diluted share.
Record Non-GAAP gross margin of 67.7%, operating income of $971.4 million, net income of $814.4 million and EPS of $1.46 per diluted share.
Record quarterly dividend declared of 32.8 cents per share, an increase of 9.0% sequentially and 41.4% from the year ago quarter.
Microchip
Microchip
Forward Guidance
Microchip expects net sales in the December quarter to be up between 3% and 5% sequentially and expects to grow sequentially again in the March quarter. At the mid-point of our guidance for the December quarter, net sales would be 22.7% higher than the year-ago quarter.
Positive Outlook
- Net sales are expected to be between $2.135 billion and $2.177 billion.
- GAAP gross margin is expected to be between 67.5% and 67.7%.
- Non-GAAP gross margin is expected to be between 67.8% and 68.0%.
- GAAP earnings per diluted share is expected to be between $1.03 and $1.07.
- Non-GAAP earnings per diluted share is expected to be between $1.54 and $1.56.
Challenges Ahead
- GAAP operating expenses are expected to be between 30.7% and 30.9% of net sales.
- GAAP other expense, net is expected to be between $52.9 million and $55.3 million.
- GAAP income tax provision is expected to be between $134.7 million and $176.0 million.
- Microchip's inventory days in the December 2022 quarter are expected to be in the range of 143 to 147 days.
- Capital expenditures for the quarter ending December 31, 2022 are expected to be between $105 million and $125 million.