•
Mar 31, 2023

Microchip Q4 2023 Earnings Report

Reported record financial results for the fourth quarter and fiscal year 2023.

Key Takeaways

Microchip Technology Incorporated reported record net sales of $2.233 billion for the quarter ended March 31, 2023, up 21.1% from the year-ago quarter. On a non-GAAP basis, record EPS was $1.64 per diluted share. The company paid down $153.0 million of debt and returned approximately $469.8 million to shareholders through dividends and share repurchases.

Record net sales of $2.233 billion, up 2.9% sequentially and up 21.1% from the year ago quarter.

Record GAAP EPS of $1.09 per diluted share and record Non-GAAP EPS of $1.64 per diluted share.

Paid down $153.0 million of debt in the March 2023 quarter, cumulatively paying down $6.3 billion of debt over the last 19 quarters.

Declared a record quarterly dividend of 38.3 cents per share for the June quarter, an increase of 38.8% from the year ago quarter.

Total Revenue
$2.23B
Previous year: $1.84B
+21.1%
EPS
$1.64
Previous year: $1.35
+21.5%
Gross Margin
68%
Previous year: 66.2%
+2.7%
Operating Margin
38%
Previous year: 29.8%
+27.5%
Quarterly Dividend
$0.383
Previous year: $0.276
+38.8%
Gross Profit
$1.52B
Previous year: $1.22B
+24.5%
Cash and Equivalents
$234M
Previous year: $319M
-26.7%
Free Cash Flow
$597M
Previous year: $633M
-5.7%
Total Assets
$16.4B
Previous year: $16.2B
+1.1%

Microchip

Microchip

Forward Guidance

Microchip expects net sales in the June quarter to be up between 1% and 4% sequentially. At the mid-point of our guidance for the June quarter, net sales would be 16.5% higher than the year-ago quarter.

Positive Outlook

  • Net Sales $2.255 to $2.322 billion
  • GAAP Gross Margin 68.0% to 68.2%
  • Non-GAAP Gross Margin 68.3% to 68.5%
  • GAAP Operating Income 38.7% to 39.4%
  • Non-GAAP Operating Income 47.8% to 48.4%

Challenges Ahead

  • GAAP Operating Expenses 28.8% to 29.3%
  • Non-GAAP Operating Expenses 20.1% to 20.5%
  • GAAP Other Expense, net $46.8 to $49.2 million
  • Non-GAAP Other Expense, net $47.0 to $49.0 million
  • GAAP Income Tax Provision $190.0 to $224.8 million