The company said gross profit for the 3-month period ended September 30, 2024 was $668.5 million, or 57.4% of net sales, lower than $1.53 billion, or 67.8%, in the same period a year earlier. It cited an unfavorable net impact from sales volume, product mix, geographic mix and average gross profit per unit as the main factors.

1. 01

   The company said gross profit for the 3-month period ended September 30, 2024 was $668.5 million, or 57.4% of net sales, lower than $1.53 billion, or 67.8%, in the same period a year earlier. It cited an unfavorable net impact from sales volume, product mix, geographic mix and average gross profit per unit as the main factors.

2. 02

   Microchip said net sales of its mixed-signal microcontroller products fell 53.6% in the 3-month period and 52.0% in the 6-month period, while analog product line sales fell 53.1% and 50.4%, respectively. The company attributed the declines to slowing economic activity, high interest rates and shorter product lead times, which left many customers with higher inventory levels.

3. 03

   The company said net cash provided by operating activities for the 6-month period ended September 30, 2024 was $420.7 million. The figure reflects net income of $207.7 million, plus non-cash and non-operating adjustments of $425.0 million, less a net cash outflow of $212.0 million from changes in operating assets and liabilities.

4. 04

   The company said capital expenditures for the 6-month period were $93.7 million, lower than $185.5 million in the same period a year earlier, and that it had halted most of its factory expansion activities. It said it plans to invest $125 million to $150 million in equipment and facilities over the next 12 months.

Key figures

Quarter ended September 30, 2024

Revenue

$1.2B

Operating income

$147M

Net income

$78M

EPS

$0.14

Gross profit

$668M

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.