- Net sales of $1.287 billion, down 3.8% sequentially and down 6.4% from the year ago quarter. The midpoint of our updated net sales guidance provided on January 6, 2020 was $1.285 billion.
- On a GAAP basis: gross margin of 61.0%; operating income of $131.2 million; net income of $311.1 million; and EPS of $1.20 per diluted share. Our guidance provided on December 3, 2019 was GAAP (loss) earnings per share of $(0.03) to $0.04 per diluted share.
- On a Non-GAAP basis: gross margin of 61.5%; operating income of $452.1 million and 35.1% of net sales; net income of $340.8 million and EPS of $1.32 per diluted share. Our guidance provided on December 3, 2019 was Non-GAAP EPS of $1.19 to $1.30 per diluted share.
- End-market demand of $1.324 billion was $36.1 million higher than net sales.
- Cash flow from operations of $395.5 million.
- Paid down $257.0 million of debt in the December 2019 quarter. Cumulatively paid down almost $2 billion of debt over the last six quarters.
- Record quarterly dividend declared of 36.70 cents per share.
CHANDLER, Ariz., Feb. 04, 2020 (GLOBE NEWSWIRE) -- (NASDAQ: MCHP) -- Microchip Technology Incorporated, a leading provider of smart, connected and secure embedded control solutions, today reported results for the three months ended December 31, 2019 as summarized in the following table:
| (in millions, except per share amounts and percentages) | Three Months Ended December 31, 2019 | |||||
| Net sales | $1,287.4 | |||||
| GAAP | % of Net Sales | Non-GAAP1 | % of Net Sales | |||
| Gross margin | $785.5 | 61.0% | $791.2 | 61.5% | ||
| Operating income | $131.2 | 10.2% | $452.1 | 35.1% | ||
| Other expense | $(120.6) | $(89.5) | ||||
| Income tax (benefit) provision | $(300.5) | $21.8 | ||||
| Net income | $311.1 | 24.2% | $340.8 | 26.5% | ||
| Net income per diluted share | $1.20 | $1.32 | ||||
| (1) | See the "Use of Non-GAAP Financial Measures" section of this release. |
GAAP net sales for the third quarter of fiscal 2020 were $1.287 billion, down 6.4% from net sales of $1.375 billion in the prior year's third fiscal quarter.
