Microchip said net sales for the 3-month period ended December 31, 2023 declined from the prior-year period. The company cited adverse economic conditions, including slowing economic activity, increased business uncertainty, persistent inflation and higher interest rates, as factors.

1. 01

   Microchip said net sales for the 3-month period ended December 31, 2023 declined from the prior-year period. The company cited adverse economic conditions, including slowing economic activity, increased business uncertainty, persistent inflation and higher interest rates, as factors.

2. 02

   The company said gross profit for the 3-month period ended December 31, 2023 was $1.12 billion, or 63.4% of net sales, lower than $1.47 billion, or 67.8%, in the prior-year period. It cited the unfavorable net impact of sales volume, product mix and average gross profit per unit of $300.0 million as the primary reason for the decrease.

3. 03

   The company said net cash provided by operating activities was $2.46 billion for the 9-month period ended December 31, 2023. It said this reflected net income of $1.75 billion, adjusted for non-cash and non-operating items of $866.4 million, and a net cash outflow of $155.9 million from changes in operating assets and liabilities. As of December 31, 2023, cash and cash equivalents were $281.0 million.

4. 04

   The company said that on December 2023, it received a Notice of Assessment from the Malaysian Inland Revenue Board seeking an income adjustment related to fiscal 2020. The company said that if the highest court of jurisdiction upheld the adjustment, income tax, excluding interest and penalties, could reach up to $360.0 million. The company said it believes the assessment is without merit and plans to pursue available administrative and judicial remedies.

Key figures

Quarter ended December 31, 2023

Revenue

$1.8B

Operating income

$529M

Net income

$419M

EPS

$0.77

Gross profit

$1.1B

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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