the fiscal of will and to the progress Thank the will Microsemi. update Today, results I third then afternoon, reflect of would you, second everyone. on on I guidance first fiscal provide of at Ganesh, I like then our quarter quarter XXXX. good XXXX. for provide
financial good. Our September were quarter results
our XXXX. in above Our just consolidated non-GAAP net we sales that issued came X, on of the August midpoint guidance
was non-GAAP gross near XX.X% consolidated at Microchip and margin operating including margin Consolidated was record. of of sales. non-GAAP Our non-GAAP operating strong the sales guidance. of classic, Microsemi was an high-end our all-time XX.X% profit,
profitable representative $X.XX is XXXth of consecutive the real for exceeded and EPS of guidance. all-time over basis, near record was Classic which quarter. $X.XX sell-through guidance was this a EPS of This the at was the distribution from September both, demand. Microsemi, Microchip on strong is non-GAAP quarter. contribution and and consolidated an our Our non-GAAP accretion original There high-end Microsemi our was based market On non-GAAP revenue on also from based
me we on made update progress have some Microsemi provide with the integration. you Now the let
we accomplished level end by the prior we line support is First to distribution level at demand X you the closing acquisition. inventory by a was distribution from one need distributors, had September distributors the reduction December. net combined believe and out, negative the completed we quarters, non-GAAP the for Microchip to classic in in and was sales in X.XX I'm sales will based of months distribution This the any and quarter. The last cooperation report quarter we from without distribution the September that a level pleased reduction two end inventory in distribution on inventory; market Microchip with that impact lot record. almost shipments This down the is told maintained with about inventory, Microsemi, and inventory months, to the teams all-time of direct an Microsemi with of on work sales distributors was to and of complete business. of out
subsidies of used we distribution were acquisition in to XX, discounts sales the manufacturers. termination terminated connection with that the and and is prior XXXX, on deals; deals, contract Second since into Microsemi closing May acquisition
of supply approximately million we into acquisition program. will We of Aero sell was distribution the example, there anymore can distribution won't At Aero in assurance $XX channel For assurance inventory the end-of-life we sales concerning that close, supply product. any take but program. under program inventory not ship under this back, into
them there to interest they the the subsidy distributors also inventory compensate to on some have. We canceled offered based was
We under additional had impact willingness manufacturers they this on contract also purchase has of the manufacturers no Cancellation product discount to need. a which take to there production canceled contract program the to offered was inventory. incentive negative program
customers there resulted in to lower a with Finally, that inventory distribution, distribution were number margin into and of for then Microsemi. transferred shipped this OEM the
of of million account we annualized of that many back direct revenue customers. for transferred today, to As have those customers about $XXX
So unit, are was inventory overall, end inventory pleased discrete some business to high it called of There reduce very to September, able months. products was At we we X.X of high business had the where brought very the rapidly. the distribution one Microsemi were at that the June X.X at end reliability down we months. unit,
We month. from in the by further. revenue The quite September inventory in In are now the only Microchip, of the business revenue sell-in prior four being to Microsemi of quarters were quarter, XX% the sell-in the third XXXX about last month this are for of were continuing in shipped acquired shipments XX% linear the Microsemi's unit reduce products shipped to quarterly quarter.
and had and so test foundries all small was facilities impact the We XX% actions couple grow of these aggressively a substantially be locations inventory. that I inventory -- quite of of did Now, did, underloadings at Microsemi We that Microsemi a a implemented targets. over factory plant It and them Microsemi, for was reduce at fabs starts let at we amount as foundries But bit temporary have margin and shutdowns days the some that discounts. small. cutting results production to by the fortunately, unless We to production gross subcontractors of the of believe large somewhat assembly inventory the end assembly control as Microsemi. very Microsemi the obvious as XX%. several we and of we cut inventories next percentage was before, test the end factories discontinuance assembly in and down the would from done factories a is wafer said Microsemi distribution We are including at many quarter. wafer Microsemi the the quarters. At And the XXX not internal internal margin of these business substantially, corrective produce high what subcontractors. XXX days, from we two took September, workers maintained as that in gross for of got loadings Microchip, cut subcontractors. is noisy overall June by inventory. of site; much loadings the overall Microsemi is owned temporary their has fairly counterbalanced go by inventory, the going days in
controlling internal So job we did a in inventories. great
up. same easy fact, that but that distribution our the And Now, after at this went amount reducing into balloon inventory all inventory. may does time, the ensuring work not a there was seem internal focus tremendous and the of too
and factory reduction foundry test and from controlling focused focused starts Microchip on internal managing and loadings. of joint assembly inventory reduction, distribution others wafer and some others multiple have Microsemi, We production teams on
on including Microsemi some revenue, I'm revenue while distribution market that not has which inventory record manufacturers, achieved sell-through provided non-GAAP contract demand. is sales affected. end pleased on selling has on non-GAAP addressing sales the based for a to business been distribution, net GAAP So based headwind driven the the
expense The this aggressively we implement extravagance. been culture. second issue moving In Microchip's highlighted have quarter last to we frugal was area,
substantially the of the many racing or Microsemi canceled sold boxes, sponsorships building, memberships. pruned headquarter many the sport's shutdown auto floor canceled at golf account, and sky private executive have jet the and We terminated
company. has are opportunities and our and the good narrative products. reduced that are has from to continued Microsemi customers we sockets good has inventory This was The end well. Microsemi sticky As for there market do and business engineering the teams combined very spending, beginning very good
them Our part the and into buy Microchip. performers likes of strategy for the has been this decade in better of world-class to businesses turn
engineering excellent with we Here, excellent excellent are starting margins teams. gross products, and
about distributor the reduced contract for With approach, achieving and optimistic and Microsemi. with operating targets Microchip's long-term expense attrition from manufacturing inventory we our are
though, business, the the to EBITDA the also Microchip debt provide leverage debt far, quarter, business. that in targets. quarter, guidance our you also we our are because accomplished of has around done the all down last Classic moved, quarter, paid true. four has into on want of out the cash and our want of the original GAAP provide September revenue law. debt. not pay primarily have I the came some ahead softness built In essentially not could to XXX I nearly So the more in figure. world. issues I lower the subsidiaries dropped, one concerns. described new $XXX had all we without Microsemi was We squeezing was our by Microchip of by This tax that I million it of Despite you the September driven highlighted classic update also large
some the tariffs. passive expected, components. lead as times of not from long Number customers This two, we issue whole since did for kit. the the sales complete affect First, could
there despite tenants destruction to impact some saw to attention bookings. four, of our investor three, number were impact demand an of weakening we industry. at that We able customer ZTE. the ship quarter of one And ZTE. will the a Bitcoin. be believe a from some war, release Justice quarter and related been during and due Microsemi, from ZTE issue the risk we While the both significant significant tariffs being trade saw analyst concerns issue. on We business the not Department, customer tariffs concerns for for the and about We saw this to has during first to our highlight the and to continue and whole Microchip Number fully
it bitcoin business, Our business has about our as supplies, power the Ethernet as was for essentially of microcontrollers management power and well supplying X% controllers. products evaporated,
guidance on turned will you the caution in December quarter. Now, to conditions for for September spot we harbinger reflected business for on guidance our broader and a provided out provide the which retrospect weakness. I quarter, be industry The was
We the and continue to negatively industrial impacted conditions well weak as quarter. for industrial, cautious We markets. by China. for weakness be testing The outlook about the December two is largest as market our automotive negatively in by see tariffs. business Europe emission Automotive bottlenecks business in impacted is
commentary, On expect center to seeing sequentially. businesses X% the and non-GAAP defense XX% and to net other With hand, this communication, are sales total aerospace all be strength. our data we down
sales. non-GAAP margin XX.X% be between XX% our gross expect of We to and
of between We between non-GAAP non-GAAP expect operating XX.X% percentage XX.X% And profit XX.X% $X.XX and be expect sales. expenses be of and expect be earnings to XX.X% we between to $X.XX we per non-GAAP sales operating to share. and and share the per
complications a We'll hear first results all Rolland their non-GAAP quarters call. continue Susquehanna. write-up non-GAAP you from meaningful accounting will non-GAAP acquisitions Christopher Given comparison request today [Operator believe guidance the Instructions] more provide and to analysts that operator, With estimates of and continue this first report results to the please basis, changes acquisitions inventory, to poll provide that in on for prior Microchip including of its with we questions? restructuring intangibles, we for and inventory track on charges, to amortization the will distribution
