Microchip Technology Inc (MCHP, Financial) announced its financial results for the second quarter of the fiscal year 2024 on November 2, 2023. The company reported net sales of $2.254 billion, a decrease of 1.5% sequentially but an increase of 8.7% from the year-ago quarter. The GAAP gross profit stood at 67.8%, with operating income of $885.0 million, constituting 39.3% of net sales. The company also reported a record net income of $666.6 million and record earnings per share (EPS) of $1.21 per diluted share.
Financial Highlights
On a non-GAAP basis, the gross profit was 68.1%, with operating income of $1.085 billion, making up 48.1% of net sales. The net income was $889.3 million, with EPS of $1.62 per diluted share. The company returned approximately $562.5 million to shareholders in the September quarter through dividends of $222.7 million and the repurchase of approximately $339.8 million, or 4.2 million shares of common stock, under its previously announced $4.0 billion stock buyback program.
Company's Performance and Future Outlook
Despite a turbulent macro environment, Microchip delivered fiscal second-quarter results that were in line with its guidance. However, the company anticipates net sales in the December quarter to be down 15% to 20% sequentially due to decelerating economic activity and escalating business ambiguity. Despite any near-term macro weakness, the company remains confident that semiconductors will continue to drive innovation for the applications and markets they serve.
Key Financial Tables
Microchip's GAAP net income for the second quarter of fiscal 2024 was $666.6 million, or $1.21 per diluted share, up from GAAP net income of $546.2 million, or $0.98 per diluted share, in the prior year's second fiscal quarter. Non-GAAP net income for the second quarter of fiscal 2024 was $889.3 million, or $1.62 per diluted share, up from non-GAAP net income of $814.4 million, or $1.46 per diluted share, in the prior year's second fiscal quarter.
Microchip's Board of Directors declared a record quarterly cash dividend on its common stock of 43.9 cents per share, up 33.8% from the year-ago quarter. The quarterly dividend is payable on December 6, 2023, to stockholders of record on November 22, 2023.
Explore the complete 8-K earnings release (here) from Microchip Technology Inc for further details.
