MCHP - Earnings call transcript Q3 2019 | Microchip Technology Incorporated

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Operator

Good day, everyone, and welcome to the Microchip's Third Quarter Fiscal 2019 Financial Results Conference Call.

As a reminder, today's call is being recorded. At this time, I would like to turn the call over to Microchip's Chief Financial Officer, Mr. Eric Bjornholt. Please go ahead, sir.

James Bjornholt

afternoon, good and you everyone. Thank

of of comments During such be Microchip's and In or business statements call, wish financial that and Microchip's results with performance performance and will on that our are are recent of and comment predictions Ganesh conference will our impact operations. Steve Chairman Sanghi, projections Moorthy, CEO; differ third I and the the that caution attendance and that financial Microchip's events quarter course making XXXX today future filings year the COO. other and SEC President we regarding me We results associated fiscal or guidance an important and this acquisition. forward-looking materially. the you company. the environment results, future to give to Ganesh risk you the may discuss then as activities business refer provide actual our Steve as and integration as release with press well events will as our on the identify well Microsemi factors our as may on their We of update current today with statements

you then information this I to analyst respond We want on available various are call in conference measures. we specific and to non-GAAP investor be will our to press in remind that including questions. release and GAAP

regarding recognition policy versus revenue XX, you adopted SEC which sold non-GAAP We believe by process non-GAAP quarter the such to through recognized new the and June are recently XXXX, Relations customer. time Investor want investors we our find comparing be on the deferred which comment reporting. at sold went our until recognition to to revenue GAAP a was reconciliation our distributors revenue during products We remind to our with have a www.microchip.com, distributors end to product we non-GAAP the were I GAAP transactions full revenue posted page an of useful a on the at historical ending where letter standard, results. requires website that GAAP will when

each we metric to to As process, this end-market a we'll this and our provide amount earnings our as distributors call a demand metric result buyer now we their other products, quarter. demand of customers net and in is the non-distributors release what customers. called End-market services revenue be of non-GAAP used and our to dollar will revenue licensing delivered to direct referring to

to based by of about end-market net information We us are distributors end-market that and calculated is inventory demand our holdings. value The to their product able their calculate shipments on of these the to shipments. our demand as customers distributors provide our value distributors from transaction of

our to demand. business We manage fulfilling based creating and on and end-market distributor will continue relationships

work a on along continue sell-in, end-market also we bonus our not end-market programs will sell All end-market our provide but based based on and non-GAAP results demand. with to will demand will distribution provide with out Therefore, P&L of Microchip's GAAP on based demand. on based distribution investors

purposes, transition compared using we historical are guidance non-GAAP our non-GAAP QX provide on our So practice for we provided forward, review today, XXXX, nomenclature. results X, our of even guidance though November changing our will going a to

will from in March billion, share-based our remarks of the go be above comment of letter which the end-market reflect through guidance, the End-market will a $X.X Steve the X.X% to $X.XXX comment $X.XXX the demand about compensation. acquisition activities was going XXXX operating non-GAAP end-market as quarter basis expenses. the midpoint his I of to quarter. guidance demand sequentially expenses on Our using results I outcome forward immediately billion net the gross some margin of on guidance now and was and also quarter. December our referring will these metric billion, including SEC our of demand during will results, preceding operating process, the prior and expenses in sales, which and effects down for

our acquisition refinement differences GAAP intangible of income settlements, X.X% special tax and share $XX includes other midpoint by $X.X million and adjustments. $X.XXX was our of rate demand. and of non-GAAP website to net diluted was $X.X in income summary product and share-based $X.X XX.X% were onetime was provision of gross $X.XX matters, releases inventory rate variety expenses billion, $XXX.X end-market million of was and demand net million of revenue basis, operating a net GAAP related our fiscal statute year geography income posted and expenses including end-market margins a earnings and tax for a similar transition The Non-GAAP income from reference. XXXX. demand. million million diluted a million cost expect and tax limitations non-GAAP acquisition-related and and we in All was net of on to $XX.X and margins a million of $XXX.X and tax amortization valuation of compensation, December reform due sales per record end-market The line of XX.X% $X.XXX. include GAAP expense for a XX.X% December the On have were quarter expiring, million. fiscal and of $X.XX $XXX.X and per XX.X%, audit costs in the $XX.X were $XX.X operating cash gross non-GAAP and the all were operating include of $XXX return impact of GAAP XXXX We million reserve tax basis, and tax your and impact were of compensation guidance of million, $X.XXX million, acquired the share GAAP was above share-based sales On million end-market to the $X.X demand tax or quarter

Microsemi transition exclusive Microchip the any and tax in global our years. tax and the the fiscal to for audit tax, the operations settlements related associated We or potential any be into 'XX of cash structure non-GAAP accrued taxes X% with prior expect rate 'XX tax fiscal restructuring of fiscal to less,

net as Microchip-Microsemi attributes deductions operating tax transition and be will keep losses over that U.S. well with and tax have We group eight $XXX believe cash payments tax years. we cash for the will The expected is credits combined associated tax and low. million our as be the interest payments tax many to about paid

Investor page We on have transition a Relations projected payments posted schedule our tax of our of website. the

significant variety earlier. quarter a GAAP benefit purposes, in reasons had For for discussed of we the tax current a

to the on Moving balance sheet.

$XXX.X inventory Our XX, million. at balance was XXXX December

through appropriate no our longer distributors from inventory quarter believe prior December an GAAP is at We are December reflected levels. for inventory end inventory markup required We million been in operating holding the had days to quarter, ending post-accounting the September. quarter's the demand. that was days in quarter. of the of December All distributors Microsemi up from sold from days support XX compared were balance. activities six to the of of flow Inventory the end-market The in our of has XXX end inventory now and days XX the level $XXX.X at cash at

on in balance consolidated line paid investment XX, the $X down $X.XXX grade the XX, We term $X.XXX debt the by December billion debt. position loan December debt outstanding million sheet At of the million. $XXX.X net and of billion total credit, debt billion bonds of December $XXX.X total reduced was B, quarter billion and and under cash convertible includes million. $XXX.X high on our our of borrowings $X.XXX of As of

was in XXXX net nature, is matures that Our X.X at very in long-dated our more and excluding debt-to-EBITDA, equity-like convertible December XX. debt

to continue continue reductions net Microsemi, and our which Our metrics to some than that leverage distribution due the in XXXX on a weak be to based are quarter. XXXX will economic less significantly significant provide these made the also end-market trailing activity the environment June during which negatively and The XX-month headwinds in impacted were do to quarter for so in caused quarter December EBITDA our demand March September inventory shipment has EBITDA periods. will

payments debt to reduce we the levels our our reduce substantially years. of several over our to are generation debt significantly excess all using beyond cash and We our expect committed levels dividend next to

were Our dividend December December was $XX.X Capital in in the $XX.X expenditures million. million quarter. payment the quarter

in capital March about million. year for about expenditures fiscal XXXX be expect the capital $XXX overall million in spending and $XX quarter to We

quarter We continue gross for production growth support of our in-house bring test to to assembly capabilities and on add activities. outsourced factories. we some to Microsemi turn activities it the was the technologies bringing of capital business, to will and the of manufacturing give into some in expense the operations particularly These business of and million. Microsemi December our us capital more currently provide and to Atmel will to Ganesh products outsourced. for to margin integration over improvement the Depreciation update Ganesh? bring are the our comments the are now our the and I quarter an new that that investments own $XX performance on December in

Ganesh Moorthy

you, Thank everyone. good and afternoon, Eric,

how like on based demand I started, an would which end-market Before the you are this line comparisons product measures sharing internally. clarify that be get performance Microchip to I with metric, I'd is

a taking by start Let's look closer at microcontrollers.

reflecting up XX.X% business XX.X% broad the compared the however, our macro sequentially the serve. represented microcontroller of were September in quarter. December quarter, weakness from revenue year-ago was markets to a down in we Our X.X% Microcontrollers, Microcontrollers the quarter.

family; ranging Network control Gartner our from that a prepared big. automotive that our address microcontroller to introduce very maXTouch this I at XX-bit remark be not April single-chip the like subsequent again. all microcontroller available Intelligent there and, see lowest as share you technology, networking our microcontroller microcontroller significant including we meetings, supports the video, we we business is inches to that In annualizing touchscreen the for $X.X in over audio, gap, billion years' last Ethernet with To the are the industry's up new seen quarter, Through LoRa steady billion last to in revenue. quarters, investor Controller industry's rankings screens XXXX business at innovative two end-market perception seemed share in our normally prior continue expect to $X results, we'd over Interface power from cable. most annualizing revenue. in to to the size; gains was efficient market have perception end-market System-in-Package in The During was over single XX business data of a microcontrollers, solution controllers quarter, my over that infotainment mentioned types, and stream XX-bit

We will next our these conference report on during call. results

moving analog. Now to

experienced. carbide September reflecting of the was broad XX.X% weakness quarter. to Our analog X.X% innovative steady sequentially the XX.X% diodes as quarter. during and temperature down quarter, business analog smallest up the the industry's represented introduce silicon December sensor industry's continued products the five multi-output revenue compared our MEMS clock quarter, in macro year-ago the generator, our a we channel in including the MOSFETs business stream the Analog And most to was the industry. microcontroller Analog, of well, however, and same robust from smallest

the Our after FPGA even going history all-time growth sequential revenue the September another X.X% to hit quarter. Actel with Microsemi and compared back to record

go demonstrate consistent market to Our the to low-power, family -- growth midrange environment. current even on garner PolarFire prior market acceptance, while continues continues the strong generations a in

system quarter. a on complete microprocessor We power the also first in X% industry's RISC-V revenue architecture. FPGA lowest the architecture, royalty-free FPGA our a the RISC-V midrange subsystem of FPGA based December combining open, industry's with on PolarFire the instruction unveiled set represented chip family

to X.X% our sequentially to quarter. up the business compared is September moving business. Next, This licensing as

of be a patent used Our can our quarter include reflect patents to license December in We of in type anticipate guidance. use. for of that another the this close license of the and specific in it results that fields sale noncompetitive set

rights We for continue retain that these field are use of to to interest patents of us. to the indefinite

quarter. monetize use in in not We patents license lumpy contribution cases, September the to We in the of acquisitions had we portfolio quarters. effort contribution that be rights patent substantial meaningful well. our as should to to portions from retain and is noncompetitive licensing strategy Investors fields do use. licensing patent meaningful patent we expect licensing in In our March this patent revenue products the quarter-to-quarter. by players will inherited of the patents through transactions in from Our the select expect all December these from future

progress. And quick Our down down sequentially Business to about finally, support are and the all quarter. September business other memory rapid September integration. XX% was units, quarter. as quarter business sequentially and the our A in compared groups December compared update the operations X% multimarket was Microsemi sales, to making the

in many take hand-in-hand continued Our are done systems thanks for and kudos go combined achieve working out results. employees company being and expect the Overall, gains will to the the which is us operations is What ahead come. are our to synergy accelerated business quarters to synergy integration, the phases. synergy of targets and we who longest

first X, of XXXX. business on units went the live phase is one The where November

business second planned phase The steady went phase X units, involved with February and more on and cadence. a more live three just are releases

overall about the operational XX integration XX to will expect to complete. and more We business take months

to pass it our business and going me now for Steve forward. comments Let some our Steve? guidance about

Stephen Sanghi

reflect fourth you, Today, fiscal and everyone. quarter of will Ganesh, then first like on will results to on of then quarter Thank the good third XXXX. guidance provide I afternoon, of XXXX. Microsemi. would progress at our for fiscal I the provide update I

margin percentage Our on end-market non-GAAP sales, and financial quarter December -- per guidance net operating demand based our earnings share. for gross margin results operating exceeded percentage, profit

our XX.X% about points. sales of guidance of consolidated reached exceeded Our midpoint gross non-GAAP by at all-time record basis the net XXX and margin an

were at sales XXX margins XX.X% of points. of operating exceeded guidance non-GAAP about and consolidated strong by midpoint basis Our the

non-GAAP per guidance exceeded midpoint EPS by consolidated share. Our our of the $X.XXX

are the higher with We of and absorption business our interest a the rates despite with under very results pleased unfavorable slowdown financial factories. from automotive European some issues, China, environment the charges in tariffs,

also record. a touch of performance non-GAAP Microsemi. Microsemi's me Let reached profit operating the on

including are time to are all guided consecutive improving rate $X.XX At financial I from ahead of On thank our seven nearly Microsemi's the Microchip, significant run accretion and this had the we quarter. accretion their well $X.XX after our also was non-GAAP systematically acquisitions, performance contribution. After for of months, run acquisition, our Microsemi basis, realizing of employees announcement for the We employees year. to Microsemi. from rate synergies. want first we XXXth of profitable

made integration. the Now, some have let update with me further provide the we you Microsemi on progress

the After inventory distribution the remained the support call, that and levels, internal inventory inventory. to last had still discussed being We maintain lower in internal stable until Microsemi in transferred believe inventory We well at the distribution inventory during to back comes we to inventory. demand. end-market current December inventories Microsemi's moving X.X to First, in line. months is conference in Microsemi several internal at the quarter's earnings quarter. Microsemi high customers that as continue distribution December directly as as channel needs distribution amount quarter, of the In reducing quarter. the distribution. this transition Microsemi serviced subcontractors the loadings Microsemi's factories it holding we completed are September

engineering for from sticky there we teams we Microsemi beginning, end-market are products. very The the combined pockets As very very and good said customers' has good opportunities company. and are the believe continue to good

the Our to and turn into businesses decade strategy for likes in buy of part performers the world-class them of this Microchip. better has been

we targets Microchip's distributor excellent about With and approach, gross started Microsemi. reduced we products, our with operating expense and margins engineering manufacturing attrition contract Here, from excellent teams. and with excellent are inventories long-term optimistic achieving for

ahead are we far, our So target. of original

a our on continuing received and of track the the with financial continued Exchange reporting GAAP guidance adoption revenue very we sales. the the had information to recognition, of revenue to response and recognition ASC in and been comments as guidance changing are discussions revenue to sell-side Now, and guidance results sales. use feedback the revenue with positive in net refer and change on forward. XXX, Securities non-GAAP staff as mentioned, the in investors sell-through sell-through included this we regarding Commission. After our sell-through quarter, After March going based analysts the of Beginning provide to from sell-in recognition standard Eric of non-GAAP net we our

appropriate continue is use will to Microchip. have business way We as sell-through demand our our sales. to Therefore, run our non-GAAP to believe a on strongly continue preferred to end-market the we that basis managing

we receiving letter under GAAP to with after SEC recognition discussing based sales comment However, the sales, on guidance net and an SEC, have the revenue decided standard. provide new sell-in

use but results, end-market revenue our We we use demand guidance we P&L. provide end-market but margin GAAP non-GAAP not per the will of operating so will gross non-GAAP our and for for profit days calculation we understand marketplace, these product investors When demand to share, on of for can the consumption in report operating we also continue earnings will will that percentage calculations. provide the information percentage, percentage, expense the sell-in

the our we Now, harbinger The September for quarter. provide reflected guidance for quarters, caution to I weakness. broader on and was guidance you out be the industry conditions, and March spot on will which turned provided for December business a in retrospect

see lingering slow issues, effect to further the for quarter. U.S. cautious up China, all very down recognition we European rates interest any for be to net down, quarter shutdown. to this potentially government continue We uncertain We environment outlook business March sales for GDP potential sequentially. automotive X% GAAP our causing revenue With commentary, about with the sell-in slowdown higher tariffs, a total government to of expect on U.S. shutdown be X% and U.S. based March in

margin be XX.X% our expect to and We between of sales. non-GAAP XX.X% gross

expect XX.X% expenses of to and sales. XX.X% non-GAAP be between We operating

percentage We and to non-GAAP operating be between of XX.X% profit sales. expect XX%

on non-GAAP expect share per share. $X.XX and $X.XX earnings these for to ranges be profit our per revenue earnings sell-in per percentage all We percentage, percentage, expense operating share revenue between based operating recognition. per GAAP to and are non-GAAP gross Again, share margin

the of investors We March analysts the sense a to quarter. Microchip see want and the how give business also we past

development negative U.S. some is will We that will any out. but extended no of bottom two say material XXXX of yet XXXX for the cannot be, Chinese and X, cycle What know, kick see see into mark this of V-shaped, you U.S. do That for likely As $XXX Microchip. for date will pending the the depend China, progress, quarter a of trade outcome L-shaped. the cycle March the between on mark the or We whether from be when, billion it the March would Microchip. will a we what if would a the be bottom substantial data there's we in March the the to trade somewhat governments shipped March forming is XXXX tariff for think on bottom talks. U-shaped goods that there the make Barring settlement recovery X, XX% about front, the the believe of quarter that shape and recovery further

write-up for be continue net the its will for the that except basis, will to prior on sales, on provide of for GAAP our restructuring questions? charges more track to the Microchip that provide analysts amortization on report and basis. We results first of accounting meaningful complications all will inventory operator, continue guidance non-GAAP you poll acquisitions, please request acquisitions, Given and believe call. which intangibles, this, results With comparison we non-GAAP estimates the including and to to non-GAAP quarters

Operator

We'll [Operator Craig Hettenbach Instructions]. with to now Morgan Stanley. go

Craig Hettenbach

I appreciate about tariffs the color things you're around kind thinking how of kind of post-March. and

you're looking of that the kind Just of rate customers? at kind the business in of Just inventory the quarter? run you're whether March of overall terms how bottom kind seeing it's any of beyond signals business, calling or here, distribution

Stephen Sanghi

of factors, Well, really variety are in very customer vast the delivery Whether including including that of pull-ins. trade uncertain range we telling we our activity, with push-outs XXX,XXX indicators get and pull-ins, is we these end variety the driven markets discussion our customers business. and sell-through is we plus distribution Today, billings environment activity, that factors, us customers, in broad that a situation. a bookings cancellations, by of very perspective a at look customer of still distribution service believe and what happening applications, direct and a

get, the vast worse formation for the framework the the front. getting that this we something see quarter. However, for on more occurs things this of negative of point in at we're releasing bottom cycle trade March amount data a a we unless on Based don't

Craig Hettenbach

this of a how far Got it. you and as just seeing And type follow-up, has talk been? the quarter kind January you're then to-date, can of about, February, so business what to linearity

Stephen Sanghi

we tracking providing. business the to well is are guidance So

-- I say that. making long a bookings would not the and enough seen to somewhat enough calls based have indicator a duration really increase recently, We and short for on very really but time stabilize be it's it's even very

Operator

Mark next go We'll Goldman to Delaney Sachs. with

Mark Delaney

you similar could for? first, Steve, hoping, above about below sell-through the I was a that will or if sense, revenue us be March quarter, to you you about give the as think if you're guidance sell-in think giving or

James Bjornholt

Yes.

good and how are inventory going really distribution process we forecasting run change we why is in that's our said consumption business is. that, we or That's the So information -- feel, distribution end-market remarks, We do in what not historically. not to for in you sell-through historically, a be. consumption a the our support is used prepared really good that we have to what kind to as we've position inventory of demand given end-market know

So that's in sell-in long pretty of for in going quarter what a that you've the I think the broadest so be. we've down time X X, from unpredictability plus at guidance of of a range time, range the this to versus guidance probably of Microchip sell-through is the seen point given broad some is to of and

Mark Delaney

question on revenue just Can a then And above helpful. company guidance. exceed follow-up guidance your those the what enabled my on gross for better its and were financial margins us sense the completed you metrics? to That's give quarter,

Stephen Sanghi

that, Well, do want to take you Eric?

James Bjornholt

Sure.

than I in puts side, revenue had came quarter, think margin above then a that's that and X% was just in So, in roughly And good little we mix we the favorable our better gross -- more than product saw that was. very midpoint. on it a the takes mean, quarter. of we but guidance And the the I was X% kind the

really to of on focus cost reductions areas. our continue manufacturing We

distributors sales contract gross You of margin seeing to terms any given portion business, in really reflect benefit a discounts itself changes know Microsemi previously the quite and of we're of manufacturers, bit made in or the for on that the today. were that we the

Operator

Bank from a take question Montreal. now Ambrish from of Srivastava We'll

Ambrish Srivastava

to margin side. take just stick Maybe the gross

coming that's just much the have Could margins in on Your help a guidance what delta, us modeled expecting your you of Q-over-Q, not understand would the especially in light down than follow-up. a are And a pretty quick a it. is, big came two I you're yet stronger have the in I guided quarter. your inventory I'm well? inventory quarters, then as And in building but there dynamics

Stephen Sanghi

Is gross margins much? are down, that not the your question are coming but the margins operating as

Ambrish Srivastava

coming shortfall revenues is question -- your what gross margin gross street the are I expecting. in modeled in than margin given stronger versus My what have the No. would was is

Stephen Sanghi

Well, think strong reason margins same this I the quarter. gross why the were

getting are back a lot Microsemi of of uplift hit. We was an were others. have business, to contract take we from that a that to channel the distribution and, lot conversion discounts distribution And and and moved the the manufacturers therefore, distribution given completed the to business of out that margin direct from the you

our having all and So is margins. ASPs effect a positive that on

to of in. which We all Atmel it coming products, to in. more was still are a There starting of our is quarter, some outside. There factories. continuing cost is bring Microsemi is of in lot more we're and product Every reduce also

from synergies. overhead out expenses taken manufacturing in the been Some of have the

of lot the parts a and is have healthy. we mix So very moving product

Ambrish Srivastava

What's time that some quick then ramping? in you $XXX buy, quickly. posted last my memory on? And things wins follow-up, going me a run of piece your million the $XXX And and annual, Steve, correct, not hopefully small was if there, million, FPGA, Is are Good. rate million usually $XXX business. a quarter. Okay. serves it around of that my it's kind but design don't turn

Ganesh Moorthy

good be and needs on products, it's that products. Quarter-to-quarter, can have on we annualized FPGA, fifth how good some of driving has markets budget and on. revenue. of the new zone feed solid if are us. to look that Yes. There There and which see some There's quarters revenue, fourth our the in the overall, continued of FPGA been built changes, many like exposed path for a generation last business are at but the no some nice many, be for buys we many FPGA a to small that is stable, to for growth that have they defense aerospace, you time But be quarter-ending it's spent. characteristics may

Operator

take Arya Vivek We'll America. Bank our question from with of next

Vivek Arya

it's So what end communications, Steve, industrial than can us seeing perhaps give by or outlook trends the or better of color where or autos midpoint whether consumer you are some would you suggest? market, worse your March or

Stephen Sanghi

Ganesh?

Ganesh Moorthy

Rather industrial for consumer addition I in we this look the have Yes. with Especially previously market, center appliance communication quarter, some the we're that, last guidance home were quarter. we that to going and started in seeing that also the at this the think indicated weaker it. than softening markets to have segment-by-segment, the data automotive, markets goes the as have

So the is the main at to time, them any is reason this pick this point I or one can't of say why strength in weakness coming the is coming.

this Defense what we're that less have, guidance into It to may at government point. that's think time. aerospace stronger point which but some quarter impacts built seeing shutdown this even and a this and all broad-based were the weakness some has are impact in at and I from last quarter strong continued be our strong. could have

Stephen Sanghi

December business. shutdown is other. a we I -- it from get its space export impact did doesn't market really see and its think it. what or out use large aerospace to lose processed and impact a some but usual programs and to a in budget where that of and all budget up these impact going in lot September the quarters a flush it spend government they help and have of of and really any quarter. own We and were where licenses government the the different some it industrial, very customers, own. of happens in and kind in consumer It's there's they is not It's There need budgets flush expect certain defense significant Otherwise, quarter the they in square some couldn't we released, it. follow

quarter in down sequentially is flush. the budget because And so segment of that March

Vivek Arya

going there next my should right be have the Steve, forward? potential we any think you say, inventory you it. let's weeks, an quarters a for not is we, Got better in industry a to now, for And is Or refill? if than consumption few trade so modeling resolution shipping follow-up, the seasonal do do do think

Stephen Sanghi

speak would of don't is so know settlement the be Microchip I rather I just how industry. about will A than doing, a bonanza. trade else everybody for

and distributors is They're the customers. Our would they be settled There on building happens. are to a trade depending prior with customers bare low backlog are for their what the need from bones big what anything so visibility. cautious. X, If to talks this wants March bonanza. get stuck Nobody

James Bjornholt

to of revenue than that higher as don't from although where just was distribution different, sell-in quarters customer that. two add data real get can the think probably the what bleed-down was, actual tell you end-market results on any our Yes. and there's the we we Vivek, inventory don't to last our points end of a is that, definitely demand

Stephen Sanghi

Yes.

So not as shipping to you are well below said. shipping we consumption consumption. We're

Operator

from next take Credit with We'll Pitzer our Suisse. question John

John Pitzer

you're guess, just the prepared Eric, made what March the Can said uncertain your for understand, of just reflection of because right us this quarter to that comments, now is to just you future environment range this or is sort on revenue? help a you a guidance quarters, is And as just guide give of wider a to around is comment normal. guide me the wider revenue the you I extent the we how sell-in of and to midpoint is in about going that uncertainty? what that extent is having think the than reflection this now of

James Bjornholt

given based combination guidance believe is the sell-ins. mean, both, of I historically we on I right? it haven't

have we to if or don't a increase a way good is period. new is feel going to to we this So distribution in decrease that Microchip understand inventory and

is is very a but factor, that the uncertain. So environment obviously

pretty this can't in it range I is what So guidance... I percentage each, -- terms a is of but of parse broad just out

Stephen Sanghi

Yes.

little neck think just over will guidance think out we a narrower. have my learn say, that to maybe bit, the would time, I I So I sticking --

distribution. very have we in We to XX large which distributors, the not distributors as distributors large do you in a X is around catalog have or with over distributors. nearly have world, semiconductor do we that houses with case we business China largely other We broad We, global we call distributors, alone. the XXX X have players know past, many business which XXX with the and

really to profits about the going buys. care everybody we processes what We out that. not buy, in And distributor worked is past. and really take network distribution don't is what figure our broad. care our of distributor sells that to out So those the what care very, are on very We

at rapidly. years. get get it environment the saying narrow. think also. I We're better other it will more Once and at impact better it saying So gets We'll very guidance uncertain we'll we environment. the not the narrow quarters. certain, is will We're And

James Bjornholt

the short and another So factor is today, lead are great. is very right? think not contributor times that visibility backlog very, I Yes,

John Pitzer

utilization to done you to? and do that about the comes of how for I relative maybe adjustments also right it In sort increasing of that through back to just some higher? working XX% now? at long-term you're business in-sourcing just you other what's kind were kind doing, the about margin to conjunction industry be we really were needed it. the you level, curious, slowdown some with all should excesses of environment. when could had Have we too target my talked importantly, not rather the of that gross you more margin? kind of lackluster margin, about and I Then guess, demand And or how think benefit far about, Is be more curious, think the mentioned the Microsemi you're utilization I'm from Because bought I'm thinking to XX% in you today. guys. you That's away a of Steve, back questions wanted around a given follow-up, that, undershipping activities business go you've gross business the you're helpful. just couple as utilization that. asked

Stephen Sanghi

Good question, always. as

we the were Microsemi because inventories higher, of corrected from a and Microchip. Right to are then think we than further, first we the get keep inherited internal are we as then inventories that lot and establish the especially underloaded mind, I assess will factories question back as your distribution XX%, internal higher of that the Just the really inventory, much further. now, at inventory level significantly on Microsemi we

higher running So than a them XX% running we have something capacity, a are number that. number factories of at of

of is internal comes the last this quarter, from is of -- done So made XX% the to about foundries. low. factories, I overall But, very I that XX% only in Microsemi utilization XX% business point think

internal carried Microsemi to the get utilization bring And were from below we are So back, have X% of only really rapidly improvement when the the XX% the we there business test some of starts capacity. only probably we and have factories total, cut comes at that running but from from factories business, they're Microchip. our foundries, assembly business, and loading and aggressively down Internal, subcontractors.

careful. be just So

Operator

Jaffray. We'll Kumar question with Harsh our from next Piper take

Harsh Kumar

of have about the Eric. bottom ask marking usually that make they But and kind -- comment are Ganesh, worse getting sort in some response your the you some also of wanted companies Steve for statement, March, said, still also to to thing. about other talking one that in of, or when backlog monitoring. One the are a watch Steve, of the I about question stabilization hearing said markets. and sort some of a I'm couple are same they broad in I'm metric in either things for

of have tangible feel do follow-up flushed at terms to shipping and or could curious and sort I'm reason data think China time And better in something is of got Eric. the that's to. you So the in point true you of if I've we're you else kind And basically why undershipping industry or orders either backlog this any then about maybe for that's a point you it? demand or

Stephen Sanghi

about, March center they're bottom, in which the confidence you're September mark gives the because the down talking some is question? what that and weaker quarters think is, would data other seasonally really But shipments compared market March to also the December seasonally and say I they're quarter business question Well, and somewhat of us the will year-end you're weaker is happen. I the asking that

Harsh Kumar

yes. Yes,

Stephen Sanghi

Okay.

So New I look June flat you Christmas for that to really X, Thanksgiving, quarter. current X, we no the had say you in the enough have Chinese quarter holidays, But can't March you holidays and we June quarter. going okay? So flat. and data November may then convince on a with quarter then you to the try. November for What There that present for bunch backlog is is think we look to Year major of would are I March had after at not about backlog our can tell we we're

all a Harsh, the this stronger make, why quarters quarter barring on for But the with the don't and time point So backlog say but followed we I and developments the the long of and calls any sequentially negative will holidays, there that others are the is, be lot we starting analysts that have we're the there should investors, are June us second confident who strengthen don't. a that's significantly the say, mean believe flat not it down without would trade going or and into again. them all for of negotiations I with believe lots that for we the China,

last call, gets even the everybody Then first made down. and the goes say then the not it have of years not in environment recovery a confirmed numerous a is business calls turn negative or to negative either. it for we We make X months When and comes to times. few turn X ridiculed positive. XX Then we first so it's believed, is what call, later, believed part the

question, confidence, over the either. not the on go you and over we and we road it. is we get the over As believed gives That what and answer

been to calling past your wrong been same what performance we in frame the not years have confidence. results. of wrong So recollection, no my gives we the the XX-plus guarantee saying us future the in is calling in have That's and Like not business, upturn. the downturn, you time

don't we guarantee anything. So

but So narrative to of number some of confidence subject course, the risks, our like that's think I'd is to explain. I

Harsh Kumar

to we very and number that's of be expect get if March? if kind base debt what in you're better expect cash forward payment for then get by so be macro you actually. of And much do of kind nothing we for question helpful the flow No, able Eric an to can available business to do going to idea And how going that's was, free level your hopefully calculation changes?

James Bjornholt

Sure.

off have of the terms don't really some help very We from December in compared than good guidance our a really and to levers $XXX we obviously negotiating making those and two the that. are in in of last of coming expect down some quarters was terms where significant would our quarter, our and but pay the what to that, is down pull of customers some quarter. progress payment vendors significantly we receivable in debt The current had were and somewhere quarter-over-quarter. accounts million quarter. that I current higher say million $XXX between We

kind expect don't we'll to do but that really down I debt. use dividend focus this significantly So ongoing all We I'd $XXX run get point paying on as will that an $XXX million think forward, our outside of cash of it generation million from of rate. excess the better continue

Operator

next to go with our question. We'll William Stein SunTrust for

William Stein

perspective call turns sense Steve, the have a that? want from sounds do implies this of sort to but question. why that approach I what's and demand to resolved correct, take guidance, to then quarter to March I'd the constructively. like and us this a to recovery that giving -- understand confidence early the you've with and some gets And just I tended different over providing you maybe it us, deadline not these like just of you're trade, cycle some, Acknowledging feel wondering of have X confident you hanging please. I'm post-March follow-up, And we

Stephen Sanghi

White there positive signals I to I the House. that's developments month don't I'm in said X, governments know also think was Actually, with I very I what progress, of barring any that I that if making the negative that are to I'm think are coming saying said. saying. what caveat significant clearly out was And March a front, the the trade what from go

out You good. week And a sudden, later signals recall a negatively one all then of out during of think. regarding how came all conferences, Canada coming were the it I

had in and strategy Trump China. coming about negative a then used -- signals it's way that So those not

it's think remains. saying, further. must work environment settlement likely positive but done. seeing And most the to the announcement but it's I'm settlement simply good, the I actual So be gets of a that get out further, pushed we're pushed some out gets The progress there's lot

current that continues, June is quarter. if And March continuing. environment than environment still current fairly a then quarter better assumes guidance Our

William Stein

they margin -- never have all with view had businesses their met business a acquired that adjustments you not the a that their or made? if in we adjustments, before wondering Okay. don't One growth great profile are portfolio was on maybe demand some any -- other can reported so acquired right any know Microchip's, think the a there of inventory might about portfolio company, of integration. if and when things different that know, Vectron, made in. closed and I'm were other I you've the that you've I to a be quarter a normalizes they question lower-margin whole that Microsemi business And recall asset. I profile

Stephen Sanghi

We have not.

any other closed the sold have We running business. businesses, Vectron of not any the the we not have factories. of We're

that at using business is correct techniques. usual You a are gross We're our lower the margin.

the margins. -- and improve have asked to they we Microsemi some. had gross trying are expenses, management, also some We the to We cut cut

if But only originally. actually is that, margin, EBITDA it the are So much lower. really higher focus than the gross margins on contribution was to what gross you the then

lower the corporate margins our We have Microchip are margin. than where businesses gross at other

are XXs. that and the higher, XXs in have We also businesses many

day, the of the a end mix. So at it's

Ganesh Moorthy

are for question terms conference excellent needed every part calls, your also the those we're while improvement. of have goes level our we've that overall of businesses, And two have us as there some In be beyond many, as of in many there last businesses in Vectron. to result better single integration effort, mentioned we made If reviewed making adjustments investment we well. And were business.

and all towards what we that. improving we're Steve us. other mentioned, on Vectron significant At the behind on this but making -- So working point, that's inherited progress and businesses, largely as all

Stephen Sanghi

substantial better. much back these when going see come as will that through we business excess inventories, factories, utilization And in numbers take out full Vectron reduction to production, to higher start their cost looking factories are the

Operator

Caso from James. Chris Raymond We'll a with question take now

Christopher Caso

you're as March anticipate you geographically. ask results to talked And also. specific that in that It in before. question geographically Can wanted you Just about the we probably a quarter? the about anything you've liked Europe seen of you about saw talk that if I the you revenue that? downtick anticipating guess from there's Asia some that look a weakness into And go

James Bjornholt

can I that. take

we're the mean, We So this on in website. I our all geographies, posted down.

is current the in, and So It for typically, But we weakness terms was see in all the quarter period it's quarter. at issue, all Year of December or of all it's the be in down the just the leading product line China holidays. kind strength our by don't unusual the New from in not And across next XX-Q be current spread geography. quarter Chinese were Europe forecast quarter I forecast the just think out geographies the This not Americas for to to see weak. globe. really were that and for just geographies we're And all in we everybody or time down. the But break the prior in because will in available filing. to of Asia that

Stephen Sanghi

our But U.S. normal business because weak also the in normal. here, and European business we're I Year, quarter, kind usually, time, even our is think Chinese dealing trade a business March of strong, is of New China directionally, is with

directionally, think that. have I it So can

Christopher Caso

revenue guess, of see then New how Chinese And month middle? again question's in I March the of as the on first Okay. the expectations linearity holiday through March the towards you uptick, the quarter. in And go of the saw you and that quarter slight kind for last quarter Year just follow-up And quarter in as quarter. follow-up, as end consideration well. downtick mentioned I of the a a you linearity the presume through taking typically that the do

Stephen Sanghi

so we bookings uptick basically hold. talked November call the did not in I about in think Well,

the But normalized you've our from take I That's And to making it the December said to in think fairly short-term very decisions data. that heard not some always that I'm everybody strength. problem yet, the have we lately, was bank very taking have on I weak. earlier seen based even it don't bank. that -- bookings

from at This the trade X.X% of about improvement today, the any include down that. dramatic or improvement have midpoint revenue. like does We made not call of GAAP-to-GAAP sequentially anything bookings or

stays the think in the I just market assumes it that doldrum.

Operator

Our with Sur next from JPMorgan. Harlan comes question

Harlan Sur

quarter of Is on the New weeks, In upon outlook, with get much and post-Chinese do executing on these after Year? the maybe quarter And two typically rates qualitative more a providing three confidence weeks guide June replenishment terms New the signals? hinges when bit the kind Year? it of how March team historically, Chinese

Stephen Sanghi

Chinese up Earlier usually the the charged ramp sometimes New So that then lands factories. the very lands come than customers and see on New and March Year, Chinese much that better can because March depending up Chinese they lunar and slow they quarter Year up go where all based quarter falls back being up before their on calendar.

be is So consider we earlier week, February, early happening fairly late late. Chinese because is be even of early it been But Year it in which sometime this really it January. kind even will has But late New can this to can mid.

we after will So and this see is sign, Chinese happens good what New Year.

Harlan Sur

data are MCU know Okay. the segment was the for recent looking QX No, a fair about just insights data, waiting I appreciate data, down so X% the for at there. but I comparison? about in Gartner down Is guys was the which Any you versus look reason business, at well. big the it sell-in not MCBU X% SIA as sell-through know guys this sequentially delta? you sequentially. versus your I

Ganesh Moorthy

XXXX these basis, noisy. quarter, that's a the at on going to look that in see we'll to easier expect data when think I you're data. rolling quarter more what find we and is given any It's the four

doubt So numbers our can mind noisy. no more be But there quarter-to-quarter, we're share. gaining is market in the

Operator

with from Alexandre question Our will Gil next Darphil. come

Gilbert Alexandre

that for XXX good looking number is all say, synergies From 'XX. pretty or your it seems 'XX that fiscal

Stephen Sanghi

to today. target So the would ahead we of that say what are accretion I is

cases, better in term we had of we gone the some it in the integration Just of number. final pulled haven't but revised some synergies have in,

If It then and change don't built a stays slower for in number, shape nobody doldrums business into I the cycles, have through lot that it's recovery for some But depend total with uncomfortable in a the the forecast, to had we then. we schedule. major back we that are fast year, then L-shaped adjusted. anticipated kind happened back it recovery, we're not happened is prior on the is achieving like think that the other If the it of going is of the may will The that schedule that on environment that recession it recovery. accretion. the has recovery get have be

Gilbert Alexandre

really or it in or that earnings you fiscal get $X non-GAAP could? 'XX means 'XX, So you

Stephen Sanghi

you're shape But words mouth. then. in Well, on of the And depending putting that was again, is my our our the that forecast recovery, still target.

Gilbert Alexandre

in long-term your And XXXX? stays same Okay. targets model you as March the made of

Stephen Sanghi

Correct.

everybody? for I state think again them

James Bjornholt

is XX% operating margin, gross on expenses it and non-GAAP margin basis. operating XX.X% a So XX.X%

Stephen Sanghi

Yes, thank you.

Gilbert Alexandre

need concerned represent autos I be your to that do XX% of mix? And

Stephen Sanghi

been has shouldn't business you good a very concerned. and be Autos

a We vehicles that, just automotive for the design funnel into have the the vehicles around of world entry all world. various tremendous and electric around future in autonomous significant wins and

notice, of they September diesel knew going the the their vehicle X. market came starting there for So one is, Europe two. effect and a all there's in a just year kind X, that switch. really new year no September standard implemented have reason sleep time, the issue One And concerned. on a XXXX. was to ahead agencies be to The XXXX, new been felt standard was emission emission capacity. automotive People on of September no X, had

the there road airport emission on taking don't because they millions away lots be standard. were pass can't cars So that of parking

a car more market, So time through it's dislocation it, working to work the that. significant that created will European in take all through

China. and issue. is than and market and larger has the the own U.S. wealth Europe. largest is through one been the now second China was was issues crash its China larger people's than issue that going So affected. And some the in slowdown stock slowdown of automotive of market, And

that automotive come China back. all will So market, the

Ganesh Moorthy

point. I up And Gil, after cars of The one year can more consumption to if go year continues into add electronics after year. going

that consumption offsets years, many reduction production well. electronics as in of going any in up and -- So

And and so the been long-term remain trend that's so.

Operator

from next with Cassidy Stifel. We'll Kevin question take our

Kevin Cassidy

your markets end that end XX-bit plays just you it. -- what traction you the it which is? into you're micro Can But Maybe the traction? you're can on maybe say automotive, say around gaining that markets discussion seeing. just Maybe

Ganesh Moorthy

in any standard are microcontroller in necessarily market. represented has we represented XX-bit going coming we the a And segments broadly all we've markets, been all a We're of them it's the the up the that as to product. that, products But being there. -- ubiquitous different one coming pick off it play broadly I one of The rapidly do come can't in in. the lower that's We're rankings. from a rankings. the end that's

Kevin Cassidy

customers thing great. Okay, an as XX-bit there Is -- your X the a going XX? helping is from Maybe upgrade your that traction? to and such

Ganesh Moorthy

at not all. No,

XX-bit, I think, for well. was results do segments the continuing X And and in that you'll XXXX, annual XX are when as see to all bits you well. the it again, doing prior three are The get years acquisitions. years to see come well as number of in organically both as perhaps more we few us a couldn't incremental It's play capabilities we markets allowing through have the a ago. that to that have

we XX-bit was providing think so for and very perhaps of I just color in and there were small point XXs. sense X a was still some of us the And was playing

a pretty based of microcontroller annualized for $X billion-plus billion $X.X us. significant over at portion two quarters, XX-bit, is market last on the annualized Now a

Operator

to next go We'll Susquehanna. Chris Rolland with

Christopher Rolland

opinion, Microsemi, for positive what the been and the Steve, a that a products since into of biggest standard quarters of in question, and regardless for we're positively sell-through, you this products so worth. terms has in of for you what now you the that those traction be supports guys demand should close? surprise But it's analyst few terms SEC's

Stephen Sanghi

a we simple But here, on very get don't very management's lot in in because have as say have company, they're discrete those fully acquisition. positives after known positive and as confirmation. positives We been a or and a And side, out, the that you explained may hidden discrete seen. got sockets, usually We have may confirm very we complex their surprises so we don't not confirmation, sticky analog negatives good, that's we get lot are really positives. products, selling not been some sockets, products sockets or very usually good said, the we business of well businesses, sockets, good close the we very timing businesses. I military So as positive the as in are good the data of are sticky not find not fully but in They're products new they're customer center may very new they're always, the understood product. have that usually FPGA I would find

very, teams, And of good fits think and Microchip. So good it has very very products with about good said done. engineering very, we we a have Business feel range it. very very that I work continuously well

gross of right the all working We methodology have levels. inventory, of truly by the a inventories ASPs discontinuing enhanced that. and Internal we're the through. discounts the the margins We some still and brought -- to

some we positive revamp the more they As have effect. factories, I think will

So all is that very good.

we think good are. I we feel about where

Christopher Rolland

the whether seen and digestion out Great. have then storage And broadly, we've guys? that have data PMCS guys you storage there optical of at And a on then or well-known slowdown slowdown any some into more out trends talking the center seen or of products, it's optical storage, seen all? hyperscale some there, this play that about for of kind or you either you given

Ganesh Moorthy

well. into our not segments. some about this for communications others as Microsemi in and center. that built that two are products think, what quarter, seeing I into been mentioned from the weakness it those And talking segments have guidance play there that I different in as earlier, is in reflect does data those we It's

Stephen Sanghi

digestion market of were a think we term. communication But going through digestion The Any I anybody cycles. the center or inventory is to questions I as segment longer data question don't and go good market direct think And strength Microsemi a coming cycle a factor quarter is hyperscale Is was, in? dealing Is will business? with the not or having two good short-term it really our some into for acquisition? right decision.

this good term. a business long think I will be very

Operator

will question next Needham Rajvindra come Company. from Our and with Gill

Rajvindra Gill

settlement between deceleration economy. versus me happening this but distinction joining in a the if trade the question asked any potential Chinese trade Forgive because you if was make or can was wondering late, that's agreement actual I'm I

dramatically down if that economy is just of but would impact off changing taking if wondering the nothing it have risk trade -- meaning, maybe sort Or in Just agreement reality there and trade but you could is the settlement, would business in just is you actual really -- some you a what that sentiment slowing more So the table the have that. could of or business? one improvement terms is really on environment? if maybe if elaborate the

Stephen Sanghi

more assessment is expensive expensive, been getting Chinese and the these why to go our in, more think tariff, is $XX I Chinese is China economy XX% much. threaten goods center a for weakening trade that's that problem billion has of goods tax. $XXX billion so the became came world. Raji, So as And the Chinese trades production with

take the out product moved are to them works. of the have of running to one outside. lots the there is they But outside of But capacity was could, that extend companies all to outside. in enough two factories was in China production and China So different extent not there just

the Chinese taken buy run market consumers cash With use and major stock And stocks. the and Chinese cars a to has machine market as the their tariffs, stock businesses hit. buy

issue away trade So the you Chinese economy. from take think cannot I the

or that there that what will Is can't risk? If think barrier talk a where then happens sides, issue trade there the there. of taking people the have barriers, future will stop the China need. on effort the factories of If settlement outside that boost there's is do trade the continue. the complete outside. factories the nobody's both And happen I work removal that think stops. the want settle, then move to significant to then economy would all to I they is would all is Chinese about As trade will settled, do know

Rajvindra Gill

of there's government? to fiscal coming the along And stimulus do helpful. a those there you Chinese of same lines, the think fiscal sort stimulus in will agreement but That's be a addition some -- trade if out

Stephen Sanghi

I thought one. was there already

Ganesh Moorthy

knowledge of been done. small have But There have that any we are don't ones inside some them.

Rajvindra Gill

Post New Year? New Year? Post-Chinese

Stephen Sanghi

a post-Chinese done, I been Year, But economy the know, Chinese what don't happen. to various I think line predictable. for think trade weak, And settlement stimulus think, don't small there is in yes, they whenever but done. what has That's that's things. there largely one really I that's have Premier, have was would a New would I one I if

Operator

next from our Janet We'll take Capital. Quadra Ramkissoon

Janet Ramkissoon

Just business Did Huawei? a you exposure you quarter? recovery have in the you again. could with comment about Have do you on China ZTE see specifically a there? -- question to And any the

Stephen Sanghi

and So ZTE no had the was business restrictions normal. in our quarter

did quarter, time, competitor business I been impact design certain And up. there kind They has was of The no normal. not. think is But of detained the it There been with business normal. business and Huawei Canada. lost a we their There is some any during U.S. picked we where about cases, a has the in a in and indictment yet. said we ZTE in in is lot of CFO Huawei talk product. on competitor also; of build prior designs ZTE cases, demand some distraction got that certain the the couldn't

Operator

Riley Craig from next with will Our Ellis come question B. FBR.

Craig Ellis

Steve, target issue with changing point. of qualitatively to approach but integration Microsemi the you're to back at this not any understanding quantitatively than I wanted go that it more

similar. touch manufacturing on of top milestones are, just operating XXXX, tackle because items income we want lower hit what we areas channel those management? And some would I'll the on you as well? this what are, in then and If now right the at sales year issues the it's just at X, be the follow-up, look as statement looked calendar or key and can expenses, objectives you'd it X to key for integration So

Stephen Sanghi

to then Microsemi, moving Microsemi somewhat going and go are brought companies our years. system to we we we we conglomerate. down bought, I With have business so years When enterprise Microsemi, they but we're single systems. a ran their have by systems, said, go wide forward to We to love a results for work business enterprise beachfront, unit, one, was compiled, on the on very, different ERP bought and -- a much. compiled one. system would into We're unit pick XX too the all very have just two down and them like

into and three two. one go progress. XX, on system X. of we'll us November We took were to business Microsemi. took we're X. one of And From XX XX, we making We February in down our So on

We a go-live we months, have another In X-or-so planned to will XX XX another every cadence quarter. for May of X. And consolidate. then there'll these be

huge But and with and of FPGA Microsemi parts and integration all and largely accretion run in foundries, and some with marketing in, in they from So products come inside. design technologies in come are lots foundries, not synergy ongoing. that's factories that Like pipelines into and done, that. some of is units the and of our a business parts The run and coming business of may to to are an that's and Most project units going going process. factories. certain they parts, come PMC-Sierra in ongoing our terms other

is far a all As common leader. sales as work sales concerned, for sales

So that's already job and biggest is in done. sales cross-training The cross-pollinating.

the is all in vice one total reviews, Microchip boards make future designed designed we see $X and in team confident And we reviews, parts And call expert salesperson reviews Microsemi company businesses gets kind to the selling a in the solution from it is progressing. billion total a those see on on the Microsemi very really Microsemi in, make takes joint get the And Microchip on that products, Microchip parts from billion your call of effect. various very system a confident solution where The some side start or you so how feel $X feels a we the work time. that's we're -- that, versa, we side, side And designed the Microsemi getting. to Microchip. side, person system on other Microchip company a and With in. Microsemi see So in. you with already the

happen. So to that happen. is lot But needs starting a more to

Craig Ellis

standpoint point, that through year? gestation that XX position a XX that to from the you've revenue? That's helpful. revenue does And is be got month put you bear design often a fruit that then where Or go before last win and you Steve, period work to can this in would on will what a design something the just

Stephen Sanghi

on go It's complex depending The X to production to months years take is. latter. to designs the it about X how

are in. cetera, You parts could could have that a be are faster, be which there very There et but simple, something longer. designed could complicated some parts, discrete

get after it's yes, period really, design in. you So the there's a gestation

it of XXXX, there. and You out in revenue should see from then accelerates some coming TSS

Operator

remarks. like to additional That concludes closing today's Sanghi I'd any question-and-answer for back session. conference turn the to Steve or Mr.

Stephen Sanghi

thank we of to seeing some this joining next and want call. call for you between now Well, everyone we'll today. be the conference And

On the going conferences road, there we'll be various to. are

So thank you.

Operator

call. your This participation. concludes Thank today's you for

now disconnect. may You

Microchip Technology (MCHP) 5 Feb 192019 Q3 Earnings call transcript