Microchip said its gross profit for fiscal 2024 was $5.00 billion, or 65.4% of net sales, lower than the $5.70 billion, or 67.5%, in fiscal 2023. The company cited an unfavorable net impact from sales volume, product mix and average gross profit per unit as the main reason for the $545.3 million decrease.

1. 01

   Microchip said its gross profit for fiscal 2024 was $5.00 billion, or 65.4% of net sales, lower than the $5.70 billion, or 67.5%, in fiscal 2023. The company cited an unfavorable net impact from sales volume, product mix and average gross profit per unit as the main reason for the $545.3 million decrease.

2. 02

   Microchip said its mixed-signal microcontroller net sales fell about 10.2%, and analog product line sales fell about 15.2%, in fiscal 2024, while other product line sales rose about 3.0%. The company cited higher customer inventory levels from slowing economic activity as the reason for the declines, and strength in its FPGA product line as the reason for the increase.

3. 03

   Microchip said net cash provided by operating activities was $2.89 billion in fiscal 2024 ($3.62 billion in fiscal 2023), and net cash used in financing activities was $2.41 billion. Dividend payments were $911.5 million, share repurchases were $982.1 million, and cash and cash equivalents were $319.7 million as of March 31, 2024.

4. 04

   Microchip said the Malaysian Inland Revenue Board (IRB) fiscal 2020 income adjustment proposal could result in income tax and penalties of up to $410.0 million if upheld by Malaysia's highest court. The company also said it has halted most factory expansion and plans to invest about $175 million in equipment and facilities over the next 12 months.

Key figures

Fiscal year ended March 31, 2024

Revenue

$7.6B

Operating income

$2.6B

Net income

$1.9B

EPS

$3.48

Gross profit

$5.0B

Operating cash flow

$2.9B

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

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.