Microchip Technology Inc. Q1 FY2025 results: revenue $1.2 billion, down 45.8% on the year

Microchip Technology Inc. (MCHP) reported revenue of $1.2 billion for Q1 FY2025, the quarter ended 30 June 2024, down 45.8% on the same quarter a year earlier. Net income was $129 million, down 80.6% on the year, and diluted earnings per share $0.24. The figures are the company's own, from the 10-Q it filed with the SEC on 1 August 2024.

Revenue$1.2 billiondown 45.8%

Net income$129 milliondown 80.6%

Diluted EPS$0.24

QuarterQ1 FY2025ended 30 June 2024

The quarter, against the one before and a year earlier

Line	Q1 FY2025	Q4 FY2024	A year earlier	Change on the year
Revenue	1,241	1,326	n/a	n/a
Cost of revenue	504	536	n/a	n/a
Gross profit	737	790	n/a	n/a
Gross margin	59.4%	59.6%	n/a
Research and development	242	240	n/a	n/a
Selling, general and administrative	150	162	n/a	n/a
Operating income	219	254	n/a	n/a
Operating margin	17.7%	19.1%	n/a
Interest expense	61.8	55.1	n/a	n/a
Pre-tax income	162	200	n/a	n/a
Income tax	32.5	45.0	n/a	n/a
Effective tax rate	20.1%	22.5%	n/a
Net income	129	155	n/a	n/a
Net margin	10.4%	11.7%	n/a
Diluted EPS	$0.24	$0.29	n/a	n/a

$ million except per share. Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q1 FY2025	Q4 FY2024	A year earlier	Change on the year
Operating cash flow	377	430	n/a	n/a
Capital expenditure	72.9	40.1	n/a	n/a
Free cash flow	304	390	n/a	n/a
Free cash flow margin	24.5%	29.4%	n/a
Depreciation and amortisation	189	218	n/a	n/a
Share-based compensation	44.0	42.8	n/a	n/a
Buybacks	72.7	387	n/a	n/a
Dividends paid	243	n/a	n/a	n/a
Dividend per share	$0.45	n/a	n/a	n/a
Diluted shares, weighted	543m	548m	n/a	n/a
Shares outstanding at period end	537m	537m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2025	Q4 FY2024	A year earlier	Change on the year
Total assets	15,840	15,873	n/a	n/a
Cash and equivalents	315	320	n/a	n/a
Receivables	1,096	1,144	n/a	n/a
Inventory	1,308	1,316	n/a	n/a
Goodwill	6,682	6,675	n/a	n/a
Long-term debt	6,168	6,000	n/a	n/a
Borrowings, as the company tags them	6,198	6,019	n/a	n/a
Operating lease liabilities	n/a	129	n/a	n/a
Shareholders' equity	6,406	6,658	n/a	n/a

Quarterly results, the last 12 quarters

	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027
Revenue	2,254	1,766	1,326	1,241	1,164	1,026	970	1,076	1,140	1,186	1,311	1,485
Cost of revenue	727	646	536	504	495	465	469	499	502	479	512	546
Gross profit	1,527	1,120	790	737	668	561	501	577	638	707	800	939
Gross margin	68%	63%	60%	59%	57%	55%	52%	54%	56%	60%	61%	63%
R&D	293	266	240	242	241	246	255	256	262	274	294	309
SG&A	197	172	162	150	157	158	152	159	172	168	174	184
Operating income	885	529	254	219	147	30.9	-100	32.1	88.9	152	217	337
Operating margin	39%	30%	19%	18%	13%	3%	-10%	3%	8%	13%	17%	23%
Interest expense	46.8	49.2	55.1	61.8	59.1	68.7	69.6	57.4	56.3	55.9	51.7	48.8
Pre-tax income	834	484	200	162	91.5	-46.1	-168	-15.8	31.8	93.6	164	290
Tax rate	20%	13%	23%	20%	14%	n/a	n/a	n/a	-31%	33%	12%	21%
Net income	667	419	155	129	78.4	-53.6	-155	-18.6	41.7	62.7	144	230
Net margin	30%	24%	12%	10%	7%	-5%	-16%	-2%	4%	5%	11%	15%
Diluted EPS	$1.21	$0.77	$0.29	$0.24	$0.14	-$0.10	-$0.29	-$0.09	$0.03	$0.06	$0.22	$0.37
Operating cash flow	616	853	430	377	43.6	272	206	276	88.1	341	257	512
Capital expenditure	74.4	59.5	40.1	72.9	20.8	18.1	14.2	17.9	36.5	22.5	14.2	13.9
Free cash flow	542	794	390	304	22.8	253	192	258	51.6	319	243	498
Buybacks	340	115	387	72.7	17.3	6.5	0.0	0.0	0.0	0.0	0.0	n/a
Dividends paid	n/a	n/a	n/a	243	244	245	245	246	246	246	247	247
Shares outstanding	541m	540m	537m	537m	537m	538m	539m	540m	540m	541m	542m	543m
Filing	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 June 2024, filed 1 August 2024, accession 0000827054-24-000139: the filing on EDGAR. All of Microchip Technology Inc.'s filings: EDGAR company page.

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