Analyst Conference Summary

semiconductors

conference date: August 7, 2025 @ 2:00 PM Pacific Time
for quarter ending: June 30, 2025 (Q1, first fiscal quarter 2026)

Forward-looking statements

Overview:

Basic data (GAAP):

Revenue was $ billion, down % sequentially from $0.97 billion, and down % from $ billion in the year-earlier quarter.

Net income was negative $ million, down sequentially from negative $157 million, and down from $ million in the year-earlier quarter.

EPS (diluted earnings per share) were negative $, down sequentially from negative $0.29, and down from $8 year-earlier.

Guidance:

Conference Highlights:

CEO Steve Sanghi said ""

Declared a 45.5 cent dividend for shareholders of record on September 1, payable September 15, 2025.

Revenue was % from mixed signal MCUs; % analog; % other.

Microchip closed Fab 2 in mid-May. It is on rotating schedules at Fabs 4 and 5. CHIPS Act activity has been paused. Reduced workforce by 10%, but revenue to expense ratio still high.

days of inventory at end of quarter, down sequentially from 251 days. Targetting 130 to 150 days. Lead times are very short. Inventories at Microchip ended the quarter at $ billion.

As usual, many new products were added in the quarter, including 64-bit controllers and high speed peripherals. Microchip conserving capital but supporting new, fast-growing products.

Non-GAAP numbers: Net income was $ million, down % sequentially from $61 million and down 80% from $ million year-earlier. EPS was $, down % sequentially from $0.11 and down % from $ year-earlier.

Cash and investments ended at $ million, up sequentially from $772 million. Cash flow from operations was $ million. $ million capital spend in quarter. $ million free cash flow. Long term debt was about $ billion; $ million used for dividends. $0 million used for stock repurchases.

GAAP cost of goods sold was $ million, leaving gross profit of $ million. Operating expenses of $ million consisted of: research and development $255 million; selling, general and administrative $ million; amortization $ million; and special charges $ million. Leaving operating income of negative $ million. Other expense $ million. Income tax benefit $ million.

Q&A selective summary:

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