| Microchip Consolidated Guidance | |||
| Net Sales | $1.225 to $1.425 billion | ||
| GAAP | Non-GAAP Adjustments | Non-GAAP(1) | |
| Gross Profit | 58.5% to 61.1% | $5.9 to $6.9 million | 59.0% to 61.6 % |
| Operating Expenses(2) | 41.1% to 46.9 % | $198.7 to $202.7 million | 26.9% to 30.7% |
| Operating Income | 11.6% to 20.0% | $204.6 to $209.6 million | 28.3% to 34.7% |
| Other Expense, net | $55.3 to $57.7 million | ($0.2) to $0.2 million | $55.5 to $57.5 million |
| Income Tax Provision | $17.4 to $52.3 million(3) | $8.9 to $23.4 million | $40.8 to $61.2 million(4) |
| Net Income | $69.4 to $174.9 million | $181.0 to $200.9 million | $250.4 to $375.8 million |
| Diluted Common Shares Outstanding | Approximately 545.5 to 546.5 million shares | Approximately 545.5 to 546.5 million shares | |
| Earnings per Diluted Share | $0.13 to $0.32 | $0.33 to $0.36 | $0.46 to $0.68 |
(1) See the "Use of Non-GAAP Financial Measures" section of this release for information regarding our non-GAAP guidance.
(2) We are not able to estimate the amount of certain Special Charges and Other, net that may be incurred during the quarter ending March 31, 2024. Therefore, our estimate of GAAP operating expenses excludes certain amounts that may be recognized as Special Charges and Other, net in the quarter ending March 31, 2024.
(3) The forecast for GAAP tax expense excludes any unexpected tax events that may occur during the quarter, as these amounts cannot be forecasted.
(4) Represents the expected cash tax rate for fiscal 2024, excluding any transition tax payments associated with the Tax Cuts and Jobs Act.
- Capital expenditures for the quarter ending March 31, 2024 are expected to be between $50 million and $60 million. Capital expenditures for all of fiscal 2024 are expected to be between $300 million and $310 million. We are selectively adding capital equipment to maintain, grow and operate our internal manufacturing capabilities to support the expected growth of our business.
Under the GAAP revenue recognition standard, which we adopted on April 1, 2018, we are required to recognize revenue when control of the product changes from us to a customer or distributor. We focus our sales and marketing efforts on creating demand for our products in the end markets we serve and not on moving inventory into our distribution network. We also manage our manufacturing and supply chain operations, including our distributor relationships, towards the goal of having our products available at the time and location the end customer desires.
