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Microchip Technology Incorporated(MCHPP) - 2025 Q4 - Annual Results

Financial Performance - Net sales for the fourth quarter of fiscal 2025 were 970.5million,adecreaseof26.8970.5 million, a decrease of 26.8% from 1.326 billion in the prior year's fourth quarter[8]. - On a GAAP basis, the net loss attributable to common stockholders for the fourth quarter was 156.8million,or156.8 million, or 0.29 per diluted share, compared to a net income of 154.7million,or154.7 million, or 0.28 per diluted share in the prior year[9]. - Non-GAAP net income for the fourth quarter was 61.4million,or61.4 million, or 0.11 per diluted share, down from 310.3million,or310.3 million, or 0.57 per diluted share in the prior year[10]. - For the fiscal year ended March 31, 2025, net sales were 4.402billion,adecreaseof42.34.402 billion, a decrease of 42.3% from 7.634 billion in the prior fiscal year[11]. - Non-GAAP net income for the fiscal year was 708.8million,adecreaseof73.7708.8 million, a decrease of 73.7% from 2.698 billion in the prior fiscal year[13]. - Net sales for Q4 2025 were 970.5million,adecreaseof26.8970.5 million, a decrease of 26.8% compared to 1,325.8 million in Q4 2024[27]. - Gross profit for Q4 2025 was 501.1million,down36.6501.1 million, down 36.6% from 789.9 million in Q4 2024, resulting in a GAAP gross profit margin of 51.6%[30]. - Operating loss for Q4 2025 was 100.3million,comparedtoanoperatingincomeof100.3 million, compared to an operating income of 253.5 million in Q4 2024[27]. - Non-GAAP gross profit for Q4 2025 was 504.6million,withanonGAAPgrossprofitmarginof52.0504.6 million, with a non-GAAP gross profit margin of 52.0%[30]. - GAAP operating loss for Q1 2025 was (100.3) million, compared to a profit of 253.5millioninQ12024,indicatingasignificantdecline[36].NonGAAPoperatingincomeforQ12025was253.5 million in Q1 2024, indicating a significant decline[36]. - Non-GAAP operating income for Q1 2025 was 136.0 million, down from 436.0millioninQ12024,adecreaseof68.8436.0 million in Q1 2024, a decrease of 68.8%[36]. - Net loss attributable to common stockholders for Q1 2025 was (156.8) million, compared to a profit of 154.7millioninQ12024[40].NonGAAPnetincomeforQ12025was154.7 million in Q1 2024[40]. - Non-GAAP net income for Q1 2025 was 61.4 million, down from 310.3millioninQ12024,adeclineof80.2310.3 million in Q1 2024, a decline of 80.2%[40]. - GAAP cash flow from operations for Q1 2025 was 205.9 million, down from 430.0millioninQ12024,adecreaseof52.1430.0 million in Q1 2024, a decrease of 52.1%[42]. - Free cash flow for Q1 2025 was 191.7 million, compared to 389.9millioninQ12024,adeclineof50.8389.9 million in Q1 2024, a decline of 50.8%[42]. - GAAP net loss income as a percentage of net sales for Q1 2025 was (16.2)%, compared to 11.7% in Q1 2024[40]. - Non-GAAP diluted net income per common share for Q1 2025 was 0.11, down from 0.57inQ12024[40].ShareholderReturnsThecompanyreturnedapproximately0.57 in Q1 2024[40]. Shareholder Returns - The company returned approximately 244.8 million to stockholders in the March quarter through dividends[5]. - The company plans to pay a quarterly cash dividend of 45.5 cents per share on June 5, 2025[14]. Future Outlook - The company expects net sales for the June 2025 quarter to be between 1.02billionand1.02 billion and 1.07 billion[7]. - Microchip expects net sales for the June 2025 quarter to be between 1.020billionand1.020 billion and 1.070 billion[1]. Operational Strategy - The company is focused on enhancing operational capabilities through efficient manufacturing and improved inventory management[1]. - Strategic financial moves and disciplined cost management are aimed at navigating current market challenges[1]. - Microchip is well-positioned to capitalize on growth opportunities in automotive, industrial, and e-mobility markets[1]. - The company plans to selectively expand production capacity and add research and development equipment[1]. - Microchip's strategic initiatives continue to deliver value across markets[1]. - The company emphasizes the importance of its long-term supply assurance program[1]. - Microchip is monitoring the impact of the CHIPS Act on manufacturing capacity in the industry[1]. Customer Base - Microchip serves approximately 109,000 customers across various markets including industrial, automotive, and consumer[1]. Debt Management - The company reduced total net debt by roughly $1.30 billion through a mandatory convertible preferred offering[7].