Analyst Conference Summary

semiconductors

conference date: May 6, 2024 @ 2:00 PM Pacific Time
for quarter ending: March 31, 2024 (Q4, fourth fiscal quarter 2024)

Forward-looking statements

Overview: Sales fell substantially and missed guidance. Still increased the dividend.

Basic data (GAAP):

Revenue was $ billion, down % sequentially from $1.77 billion, and down % from $ billion in the year-earlier quarter.

Net income was $ million, down % sequentially from $419 million, and down % from $ million in the year-earlier quarter.

EPS (diluted earnings per share) were $, down % sequentially from $0.77, and down % from $ year-earlier.

Guidance:

Conference Highlights:

CEO Ganesh Moorthy said ""

In 2025 hopes to be able to return all free cash flow to shareholders.

Revenue by end markets was: % industrial, % data center or computing, % automotive, % communications, % consumer appliances. By product line: MCUs %, analog %, other %. By geography: Asia %, Americas %, Europe %.

Discontinued PSP (guaraneed buying from customers) program in February 2024.

days of inventory at end of quarter, up sequentially. Some customers pushed out orders. Lead times have become shorter.

As usual, many new products were added in the quarter. Microchip conserving capital but supporting new, fast-growing products.

The dividend was to $, to stockholders of record on 23, 2024, payable on 8. Plans to continue to increase dividends until they reach about 50% of cash flow.

Non-GAAP numbers: Net income was $ million, down % sequentially from $593 million and down % from $ million year-earlier. EPS was $, down % sequentially from $1.08 and down % from $ year-earlier.

Cash and investments ended at $ million, up sequentially from $281 million. Cash flow from operations was $ million. $ million capital spend in quarter. $ million free cash flow. Long term debt was about $ billion down sequentially from $ billion; reduced net leverage to 1.27x. $ million returned to shareholders: $ million used for dividends. $ million used for stock repurchases.

GAAP cost of goods sold was $ million, leaving gross profit of $ billion. Operating expenses of $ million consisted of: research and development $ million; selling, general and administrative $ million; amortization $ million; and special expense $ million. Leaving operating income of $ million. Other expense $ million. Income tax $ million.

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