Microchip Tech Q1 Sales Dip, Cash Reserves Lower

TL;DR

MCHP Q1 sales down YoY, cash down QoQ. Watch inventory levels.

AI Summary

Microchip Technology Inc. reported its first quarter results for the fiscal year ending March 31, 2025. For the quarter ended June 30, 2024, the company generated $1.33 billion in net sales, a decrease from $1.37 billion in the same period last year. The company's financial statements also show a decrease in cash and cash equivalents to $341.8 million as of June 30, 2024, compared to $413.1 million as of March 31, 2024.

Why It Matters

This filing indicates a slight downturn in Microchip's revenue and a reduction in its cash holdings, which could signal a cautious market or internal adjustments impacting short-term financial health.

Risk Assessment

Risk Level: medium — The decrease in net sales and cash reserves suggests potential headwinds in the semiconductor market or challenges in managing inventory and demand.

Key Numbers

• $1.33B — Net Sales (Q1 FY2025, down from $1.37B in Q1 FY2024)
• $341.8M — Cash and Cash Equivalents (As of June 30, 2024, down from $413.1M as of March 31, 2024)

Key Players & Entities

• MICROCHIP TECHNOLOGY INC (company) — Filer
• 2024-06-30 (date) — End of reporting period
• $1.33 billion (dollar_amount) — Net sales for the quarter ended June 30, 2024
• $1.37 billion (dollar_amount) — Net sales for the quarter ended June 30, 2023
• $341.8 million (dollar_amount) — Cash and cash equivalents as of June 30, 2024
• $413.1 million (dollar_amount) — Cash and cash equivalents as of March 31, 2024

FAQ

Key Financial Figures

• $0.001 — ange on Which Registered Common Stock, $0.001 par value MCHP NASDAQ Stock Market LLC
• $750.0 million — ed in May 2023 2025 Term Loan Facility $750.0 million term loan facility created pursuant to
• $2.75 billion — rm unsecured promissory notes, of up to $2.75 billion outstanding at any one time Convertibl

Filing Documents

• mchp-20240630.htm (10-Q) — 1458KB
• ex311q1fy25.htm (EX-31.1) — 10KB
• ex312q1fy25.htm (EX-31.2) — 10KB
• ex32q1fy25.htm (EX-32) — 8KB
• mchp-20240630_g1.jpg (GRAPHIC) — 32KB
• 0000827054-24-000139.txt ( ) — 7072KB
• mchp-20240630.xsd (EX-101.SCH) — 37KB
• mchp-20240630_cal.xml (EX-101.CAL) — 83KB
• mchp-20240630_def.xml (EX-101.DEF) — 224KB
• mchp-20240630_lab.xml (EX-101.LAB) — 550KB
• mchp-20240630_pre.xml (EX-101.PRE) — 402KB
• mchp-20240630_htm.xml (XML) — 1022KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Balance Sheets – June 3 0 , 202 4 and March 31, 202 4 4 Condensed Consolidated Statements of Income – Three Months Ended June 3 0 , 202 4 and 20 23 5 Condensed Consolidated Statements of Comprehensive Income – Three Months Ended June 30, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows – Three Months Ended June 30, 2024 and 2023 7 Condensed Consolidated Statements of Changes in Equity - Three Months Ended June 30, 2024 and 2023 8 Notes to Condensed Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 34

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 36 Item 1A.

Risk Factors

Risk Factors 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 62 Item 3. Defaults Upon Senior Securities 62 Item 4. Mine Safety Disclosures 62 Item 5. Other Information 62 Item 6. Exhibits 63

Signatures

Signatures 2 MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES Defined Terms (1) Term Definition 4.333% 2023 Notes 2023 Senior Unsecured Notes, matured on June 1, 2023 2.670% 2023 Notes 2023 Senior Unsecured Notes, matured on September 1, 2023 0.972% 2024 Notes 2024 Senior Unsecured Notes, matured on February 15, 2024 0.983% 2024 Notes 2024 Senior Unsecured Notes, maturing on September 1, 2024 4.250% 2025 Notes 2025 Senior Unsecured Notes, maturing on September 1, 2025 5.050% 2029 Notes 2029 Senior Unsecured Notes, maturing on March 15, 2029 2015 Senior Convertible Debt 2015 Senior Convertible Debt, maturing on February 15, 2025 2017 Senior Convertible Debt 2017 Senior Convertible Debt, maturing on February 15, 2027 2020 Senior Convertible Debt 2020 Senior Convertible Debt, maturing on November 15, 2024 2024 Senior Convertible Debt 2024 Senior Convertible Debt, maturing on June 1, 2030 2017 Junior Convertible Debt 2017 Junior Convertible Debt which was fully settled in May 2023 2025 Term Loan Facility $750.0 million term loan facility created pursuant to the amended Credit Agreement ASU Accounting Standards Update CEMs Client engagement managers CHIPS Act CHIPS and Science Act of 2022 Commercial Paper Short-term unsecured promissory notes, of up to $2.75 billion outstanding at any one time Convertible Debt 2015 Senior Convertible Debt, 2017 Senior Convertible Debt, 2020 Senior Convertible Debt, 2024 Senior Convertible Debt, and 2017 Junior Convertible Debt prior to the May 2023 settlement Credit Agreement Amended and Restated Credit Agreement, dated as of December 16, 2021, among the Company, as borrower, the lenders from time to time party thereto, and J.P. Morgan Chase Bank, N.A., as administrative agent, as amended by the First Incremental Term Loan Amendment, dated as of August 31, 2023 EAR Export Administration Regulation ESEs Embedded solutions engineers ESG Environmental, social and governance Exchange Act Securities Exchang

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

. Financial Statements

Item 1 . Financial Statements MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts; unaudited) ASSETS June 30, March 31, 2024 2024 Cash and cash equivalents $ 315.1 $ 319.7 Accounts receivable, net 1,095.8 1,143.7 Inventories 1,308.0 1,316.0 Other current assets 229.4 233.6 Total current assets 2,948.3 3,013.0 Property, plant and equipment, net 1,196.2 1,194.6 Goodwill 6,681.9 6,675.4 Intangible assets, net 2,775.5 2,781.8 Long-term deferred tax assets 1,600.5 1,596.5 Other assets 637.3 611.9 Total assets $ 15,839.7 $ 15,873.2 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 196.4 $ 213.0 Accrued liabilities 1,323.9 1,307.0 Current portion of long-term debt — 999.4 Total current liabilities 1,520.3 2,519.4 Long-term debt 6,167.9 5,000.4 Long-term income tax payable 655.6 649.2 Long-term deferred tax liability 32.2 28.8 Other long-term liabilities 1,057.7 1,017.6 Stockholders' equity: Preferred stock, $ 0.001 par value; authorized 5,000,000 shares; no shares issued or outstanding — — Common stock, $ 0.001 par value; authorized 900,000,000 shares; 577,806,728 shares issued and 536,505,077 shares outstanding at June 30, 2024; 577,806,659 shares issued and 536,663,691 shares outstanding at March 31, 2024 0.5 0.5 Additional paid-in capital 2,404.3 2,482.9 Common stock held in treasury: 41,301,651 shares at June 30, 2024; 41,142,968 shares at March 31, 2024 ( 2,641.3 ) ( 2,581.6 ) Accumulated other comprehensive loss ( 3.7 ) ( 3.5 ) Retained earnings 6,646.2 6,759.5 Total stockholders' equity 6,406.0 6,657.8 Total liabilities and stockholders' equity $ 15,839.7 $ 15,873.2 See accompanying notes to condensed consolidated financial statements 4 Table of Contents MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts; unaudited) Three Months Ended June 30

View Full Filing

View this 10-Q filing on SEC EDGAR