MCHP - Microchip Technology Incorporated. (MCHP) Q4 2024 Earnings Call Transcript
2024-05-06 21:24:09 ET
Microchip Technology Incorporated. (MCHP)
Q4 2024 Earnings Conference Call
May 06, 2024 05:00 PM ET
Company Participants
Eric Bjornholt - CFO
Ganesh Moorthy - President and CEO
Steve Sanghi - Executive Chair
Conference Call Participants
Vivek Arya - Bank of America
Chris Caso - Wolfe Research
Harlan Sur - JPMorgan
Gary Mobley - Wells Fargo
Timothy Arcuri - UBS
Tore Svanberg - Stifel
Toshiya Hari - Goldman Sachs
Joshua Buchalter - TD Cowen
Chris Danely - Citi
Vijay Rakesh - Mizuho
William Stein - Truist
David O'Connor - Exane BNP Paribas
Mark Lipacis - Evercore ISI
Joe Moore - Morgan Stanley
Christopher Rolland - Susquehanna
Presentation
Operator
Greetings and welcome to the Microchip Q4 of Fiscal Year 2024 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Eric Bjornholt, Senior Vice President and CFO. Thank you, Eric. You may begin.
Eric Bjornholt
Thank you and good afternoon everyone. During the course of this conference call, we will be making projections and other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are predictions and that actual events and results may differ materially. We refer you to our press release as of today, as well as our recent filings with the SEC, that identify important risk factors that may impact Microchip's business and results of operations.
In attendance with me today are Ganesh Moorthy, Microchip’s President and CEO; Steve Sanghi, Microchip’s Executive Chair; Rich Simoncic, Microchip’s COO, and Sajid Daudi, Microchip’s Head of Investor Relations.
I will comment on our fourth quarter and full fiscal year 2024 financial performance. Ganesh will then provide commentary on our results and discuss the current business environment as well as our guidance and Steve will provide an update on our cash return strategy. We will then be available to respond to specific investor and analyst questions. We are including information in our press release in this conference call on various GAAP and non-GAAP measures. We have posted a full GAAP to non-GAAP reconciliation on the investor relations page of our website at www.microchip.com and included reconciliation information in our earnings press release, which we believe you will find useful when comparing our GAAP and non-GAAP results. We have also posted a summary of our outstanding debt and our leverage metrics on our website.
I will now go through some of the operating results including net sales, gross margin, and operating expenses. Other than net sales, I will be referring to these results on a non-GAAP basis which is based on expenses, prior to the effects of our acquisition activities, share-based compensation, and certain other adjustments as described in our earnings press release and in the reconciliations on our website.
Net sales in the March quarter were $1.326 billion, which was down 24.9% sequentially. We have posted a summary of our net sales by product line and geography on our website for your reference. On a non-GAAP basis, gross margins were 60.3%, including capacity under utilization charges of $32 million. Operating expenses were at 27.4%, and operating income was 32.9%. Although our operating income was better than the midpoint of our guidance, our cash taxes came in higher than forecasted. Non-GAAP net income was $310.3 million and non-GAAP earnings per diluted share was $0.57 and at the midpoint of our guidance....
Microchip Technology Incorporated. (MCHP) Q4 2024 Earnings Call Transcript