Good morning, everybody.
company. this forward-looking we or statements financial of of projections be the course performance other and regarding the the conference will call, making future During future events
statements We are or wish may materially. differ you to that results predictions that actual caution and events such
as identify business you press important that impact Microchip's well risk results refer filings of with last evening releases factors We recent of the and operations. to as our our SEC that may
Microchip's with Chairman CEO; me Moorthy, today President attendance Sanghi, Microchip's Steve In Ganesh and are and and COO.
fourth comment on and will XXXX I year financial our quarter full fiscal performance.
And with business their comments environment the Microsemi and our provide on current as will well on the guidance, acquisition. our discuss Steve then as an Ganesh associated the activities give update results, integration
specific be analyst We available and to respond to investor then questions. will
information We our call and on measures. this GAAP release conference press and non-GAAP are various including in
sold revenue adopted our historical for products to page you recognition at on revenue a I We reconciliation ending, new the which investors be non-GAAP by an such want transactions versus posted standard, useful to find on we time will which relations investor the revenue the at was and recognized www.microchip.com, distributors revenue until the the XXXX, are requires product distributors comparing GAAP remind to policy sold to when full non-GAAP have June our quarter during GAAP results. recognition deferred website our we GAAP that of XX, end-customer. believe were to
will sell-out, our release GAAP on investors demand. will a we end-market sell-through track non-GAAP plus end-market End-market internally but each activity we'll We quarter. operating metric and also distribution based billion, not demand $X.XX margin above operating XXXX end-market I sales, quarter provide go GAAP share-based expenses. distribution is earnings demand revenue. basis, our now provide and to certain the which sell-in, in activities, prior based of based acquisition Therefore, a including continue provide was on compensation will based on results a our the on distribution non-GAAP with P&L along with million our will I on performance adjustments. results gross was in called to our and be the on this March demand our results, other of for revenue to net which $XX.X and measure some referring effects expenses and these direct through
three disclosed the information the of fiscal fiscal sell-through $X.XX our guidance Our each the XXXX sales Net today above as results were billion, and sequentially. based fiscal for was quarter in the quarter previously XXXX, plus non-GAAP based midpoint which the for of calculated the are the quarters X.X% March of fourth first non-GAAP down XXXX. sum of we of disclosed non-GAAP information sell-in
and the guidance earnings was $XXX.X share was diluted sales. our sales. guidance per million. was range of at low-end which of operating $X.XX income Non-GAAP was $X.XXX. of the $XXX.X XX.X% were posted GAAP gross of have above geography of for product and Operating our website basis, were by well a non-GAAP We was your our line expenses and net XX.X%. the on which at million XX.X% over $X.XX, And income On summary of a our above net sales Non-GAAP reference. and guidance, of demand midpoint the XX.X% end-market margins midpoint our
tax global sales and the $X.XX acquisition GAAP or of Microsemi The a diluted operations an acquisition include $XXX.X structure. and tax of related were tax based based was in operating of including Microchip recognition, XXXX, $X.XX restructuring year the variety sell-in record distribution basis record million on share $X.XXX reporting before in recognition Please XX.X% sell-in on And revenue year-over-year. with fiscal our be million results channel. income note were income through was which distribution based per tax benefit a of year was non-GAAP that XX.X% in special as were billion based was $XX.X costs, GAAP of on Fiscal a million, line The per QX results, for and up $X.XX XX.X%. non-GAAP and XXXX, and and and revenue in the on recognition reform XXXX channel. revenue other the XX.X% million, for fiscal expenses and a revenue were X% income of record reserve QX margins non-GAAP $XXX.X GAAP associated March was $X.XXX of Total fiscal year-over-year. the XX.X%, cash benefits non-GAAP includes margins $X.XX a X.X% basis, refinements income of Net were QX revenue sales was sell-through income and non-GAAP was expiring, results fiscal inventory On XXXX. million. sales diluted of compensation $X were operating Gross of Operating adopted fiscal sales up the into in million Net matters, expenses our quarter reported XXXX. and of XX.X% $XX.X the The benefit a $XX.X with EPS operating margins income to $X.X and were XXXX, million. the were and quarter million sales. our share basis, gross during valuation per of billion due and a related intangible was amortization standard record $XXX.X On statute net XX.X% GAAP non-GAAP income expenses based XX.X% and a recognition billion first For releases of of mentioned GAAP share. year to sales. on rate tax of Gross record operating limitations compensation quarter and share. based impact million include XX.X% a are acquired net were $XXX.X EPS was cost. publically net $X.X for will tax diluted share million
to was lower we into than defer cash taxes of FY our one For purposes, of rate tax of some our XXXX fiscal reasons XXXX. payment originally able the projected. the XXXX fiscal is this And planning were
expect our to tax exclusive in into structure potential XXXX We and of global any fiscal with between audit any Microsemi settlements prior be tax the the rate Microchip X%, tax restructuring X% to operations years. accrued and for associated transition the fiscal tax, taxes related non-GAAP
over cash that We the have and and our The payments be as operating $XXX U.S. low. attributes transition net cash expected tax well believe paid next payments keep years. X interest associated losses to about many credits, million will tax we will with and tax tax is future tax as the deductions be
of on payments Relations Investor a of schedule have projected our page We tax transition posted the website. our
significantly to from prior notice you balance the on quarter. is balance will Moving receivable accounts Microchip's the sheet, that up
We have that the a distributor from the a our price the AR we than to reduced price distributors at the made balance sales in price receive liabilities. sell presentation from is that ultimate ultimate to generally distributors' to price is accounting that price and adjustments that our the reduce an change sale ultimately by accrued distributors then we the increase an adjustment when occurs customers. distributor higher a reduction amount in to cash reclassify of Remember,
this the reclassification, $X million our quarter. balance up in Excluding was accounts about receivable
is believe purchase March XX, in inventory All for were sold end to that had activities up developments was March at the the quarter accounting through our trade prior demand. XX inventory markup cash a now our XX level. from in the Inventory distributors up X $XXX.X any at quarter's inventory barring ending are and longer holding of The $XXX.X a from distributors balance end-market negative flow balance. the been no days at days of compared Microsemi December. to XXXX of support inventory quarter. March of the has in inventory XXX-days million. at the Our the level million March We U.S./China reflected GAAP the in operating We was for days reasonable the required quarter, front, end
investment on At grade March $X.XXX billion debt B, debt sheet March of the includes line of down $X.XXX of $X.XXX quarter. and paid the of $XXX.X under by debt. credit, outstanding billion We balance million. high March of And convertible the $XXX.X $X consolidated billion the reduced and million. billion was As $XXX.X total position debt net million XX, total our in loan term XX, on bonds our cash borrowings of
and EBITDA quarter million, was was Our months our $XXX.X XX trailing billion. the in $X.XXX EBITDA March
XXXX excluding in net Our at that debt-to-EBITDA, XX, equity-like our very X.X convertible and March is long-dated nature, XXXX. was in debt matures more
our continue a impacted on for September that March during Our the trailing net to which has will weaker EBITDA less caused Microsemi, XXXX than significantly December economic provide environment due are XX-month the these the inventory our reductions based demand the XXXX shipment The some also which negatively quarter to June activity and distribution in were headwinds to end-market made metrics in quarters. periods. and be EBITDA, leverage
of to years. committed over payments beyond using excess reduce our dividend next expect generation are levels significantly to several our the our we levels debt We debt and reduce all substantially cash to our
quarter million and in the XXXX payment Capital $XX.X dividend quarter fiscal March the in XXXX. the were Our million. $XX.X was March year $XXX.X expenditures in million
and to be in and million $XXX $XXX capital June the between in about year expect overall expenditures We for quarter spending million. $XX XXXX fiscal million capital
we provide are of million. expense our now on Atmel performance technologies over add growth will the production integration products that in-house and give Ganesh? us to and activities. improvement capabilities bring $XX.X own our quarter turn outsourced for continue operations in and business, an Microsemi March to the the of for and capital margin business that our activities I the our the bring quarter the are will currently the Depreciation particularly outsourced. capital on factories. comments update investments some manufacturing of to These and We March to Microsemi some Ganesh support of more new test assembly bringing was to the into to in gross to it
