•
Mar 31, 2022

Microchip Q4 2022 Earnings Report

Reported record financial results for the fourth quarter and fiscal year 2022.

Key Takeaways

Microchip Technology reported record net sales of $1.844 billion for the quarter ended March 31, 2022, up 25.7% from the year-ago quarter. GAAP EPS was $0.77 per diluted share, while non-GAAP EPS was a record $1.35 per diluted share. The company declared a record quarterly dividend of 27.6 cents per share, up 33.7% from the year-ago quarter.

Record net sales of $1.844 billion, up 25.7% from the year-ago quarter.

GAAP EPS of $0.77 per diluted share.

Non-GAAP EPS was a record $1.35 per diluted share.

Declared a record quarterly dividend of 27.6 cents per share, up 33.7% from the year-ago quarter.

Total Revenue
$1.84B
Previous year: $1.47B
+25.7%
EPS
$1.35
Previous year: $0.93
+45.2%
Gross Margin
66.2%
Previous year: 64.1%
+3.3%
Operating Margin
29.8%
Previous year: 40.7%
-26.8%
Quarterly Dividend
$0.276
Previous year: $0.413
-33.2%
Gross Profit
$1.22B
Previous year: $927M
+31.7%
Cash and Equivalents
$319M
Previous year: $282M
+13.3%
Free Cash Flow
$633M
Previous year: $394M
+60.8%
Total Assets
$16.2B
Previous year: $16.5B
-1.7%

Microchip

Microchip

Forward Guidance

Microchip expects net sales in the June quarter to be up between 4% and 8% sequentially. At the mid-point of guidance, net sales will be 24.6% higher than the year-ago quarter.

Positive Outlook

  • Net sales are expected to be $1.918 to $1.992 billion.
  • GAAP gross margin is expected to be 66.4% to 66.8%.
  • Non-GAAP gross margin is expected to be 66.8% to 67.2%.
  • GAAP earnings per diluted share are expected to be $0.85 to $0.86.
  • Non-GAAP earnings per diluted share are expected to be $1.32 to $1.36.

Challenges Ahead

  • GAAP operating expenses are expected to be 32.6% to 33.2% of net sales.
  • GAAP other expense, net, is expected to be $49.8 to $52.2 million.
  • GAAP income tax provision is expected to be $108.7 to $147.9 million.
  • Capital expenditures for the quarter are expected to be between $120 million and $140 million.
  • The forecast for GAAP tax expense excludes any unexpected tax events that may occur during the quarter.