Summary by Moomoo AI
Microchip Technology reported Q1 FY25 net sales of $1.241 billion, down 45.8% YoY and 6.4% QoQ. GAAP net income was $129.3 million ($0.24 per share), while non-GAAP net income reached $289.9 million ($0.53 per share). The company declared a record quarterly dividend of 45.4 cents per share, up 10.7% YoY.The company announced that Executive Chair Steve Sanghi will retire as an officer and employee effective August 20, 2024, while continuing to serve as board chair. Management noted that while "green shoots" continue, they haven't developed as robustly as anticipated, with macro environment remaining weak particularly in industrial and automotive markets.Looking ahead, Microchip expects Q2 FY25 net sales between $1.12-1.18 billion. Despite near-term inventory and macro challenges, the company maintains strong design-in momentum across markets. The company returned $315.3 million to stockholders through dividends ($242.6 million) and share repurchases ($72.7 million) during the quarter.
