Summary by Moomoo AI
Microchip Technology reported Q2 FY2025 net sales of $1.164 billion, down 48.4% YoY and 6.2% QoQ. GAAP net income decreased to $78.4 million ($0.14 per share) from $666.6 million ($1.21 per share) YoY. Non-GAAP net income was $250.2 million ($0.46 per share). The quarter's results were positively impacted by a $13.3 million legal settlement.The company returned $261 million to stockholders through dividends of $243.7 million and share repurchases of $17.3 million. A record quarterly dividend of 45.5 cents per share was declared, up 3.6% YoY. Management noted continued customer destocking efforts and sluggish end-market demand, particularly in European industrial and automotive segments.For Q3 FY2025, Microchip expects net sales between $1.025-1.095 billion, citing ongoing inventory correction and macro uncertainties in their seasonally weakest quarter. The company maintains strong cost discipline while preparing for anticipated market recovery, with growing adoption in AI-accelerated server markets through their Total System Solutions approach.
