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Microchip Technology Incorporated(MCHPP) - 2025 Q3 - Quarterly Results
MCHPPMicrochip Technology Incorporated(MCHPP)2025-02-06 21:16

Financial Performance - Net sales for the third quarter of fiscal 2025 were 1.026billion,down41.91.026 billion, down 41.9% from 1.766 billion in the prior year's third quarter[4]. - GAAP net loss was 53.6million,or53.6 million, or 0.10 per diluted share, compared to a net income of 419.2million,or419.2 million, or 0.77 per diluted share, in the prior year[5]. - Non-GAAP net income was 107.3million,or107.3 million, or 0.20 per diluted share, down from 592.7million,or592.7 million, or 1.08 per diluted share, in the prior year[6]. - Net sales for the three months ended December 31, 2024, were 1,026.0million,adecreasefrom1,026.0 million, a decrease from 1,765.7 million in the same period of 2023, representing a decline of 42%[23]. - Operating income for the three months ended December 31, 2024, was 30.9million,significantlylowerthan30.9 million, significantly lower than 529.4 million in the same period of 2023, reflecting a decrease in operating income margin from 30.0% to 3.0%[31]. - Reported net loss for Q3 2025 was 53.6millioncomparedtoanetincomeof53.6 million compared to a net income of 419.2 million in Q3 2024[35]. - Non-GAAP net income for Q3 2025 was 107.3million,downfrom107.3 million, down from 592.7 million in Q3 2024[35]. Dividends and Shareholder Returns - The company returned approximately 244.6milliontostockholdersthroughdividendsintheDecemberquarter[3].−Aquarterlydividendof45.5centspersharewasdeclared,representinga1.1244.6 million to stockholders through dividends in the December quarter[3]. - A quarterly dividend of 45.5 cents per share was declared, representing a 1.1% increase from the year ago quarter[7]. Inventory and Operational Adjustments - Inventory levels reached 266 days, prompting decisive steps to realign the business[8]. - Company emphasizes focus on inventory management and shareholder returns amidst market uncertainties[39]. Future Guidance - The company expects net sales guidance for the March quarter to be between 920.0 million and 1.000billion[11].−NetsalesguidanceforQ42025isprojectedbetween1.000 billion[11]. - Net sales guidance for Q4 2025 is projected between 920.0 million and 1.000billion[39].−GrossprofitmarginfortheMarchquarterisexpectedtobebetween51.21.000 billion[39]. - Gross profit margin for the March quarter is expected to be between 51.2% and 53.1%[11]. - Operating income for the March quarter is projected to be between (128.5) million and (79.4)milliononaGAAPbasis[11].ResearchandDevelopment−ResearchanddevelopmentexpensesforthethreemonthsendedDecember31,2024,were(79.4) million on a GAAP basis[11]. Research and Development - Research and development expenses for the three months ended December 31, 2024, were 246.2 million, which is 24.0% of net sales, compared to 266.0millionor15.1266.0 million or 15.1% of net sales in 2023[27]. - Non-GAAP research and development expenses for the three months ended December 31, 2024, were 217.4 million, representing 21.2% of net sales, compared to 241.5millionor13.7241.5 million or 13.7% of net sales in 2023[27]. - Company plans to selectively expand production capacity and invest in research and development equipment[39]. Cash Flow and Debt - GAAP cash flow from operations for Q3 2025 was 271.5 million, a decrease from 853.3millioninQ32024[36].−FreecashflowforQ32025was853.3 million in Q3 2024[36]. - Free cash flow for Q3 2025 was 253.4 million, compared to 793.8millioninQ32024[36].−Long−termdebtincreasedto793.8 million in Q3 2024[36]. - Long-term debt increased to 6,749.5 million as of December 31, 2024, compared to $5,000.4 million as of March 31, 2024[25].