afternoon good and you everyone. Thank
Microchip's of of During such be or statements call, wish performance will are predictions conference projections the the caution and that financial events course making materially. future that results that other we and recent to filings business regarding We the refer SEC that this forward-looking you our may well press events or We as our company. actual releases the important as factors risk identify and future to impact may differ operations. of you of statements today results with
year In and financial and Steve will are Ganesh as today I the performance. Steve then CEO President Ganesh comments our on environment business give Microchip's discuss Chairman well fiscal and and COO. and as our attendance the guidance. XXXX with Moorthy, current on results will And Sanghi, me comment their Microchip's quarter third
then specific We will respond analyst questions. to and investor be available to
We in our measures. and various call release are including conference GAAP non-GAAP information in on and this press
non-GAAP when non-GAAP our We page believe on full useful a will GAAP reconciliation have results. we our to which find website the of Investor and at posted GAAP www.microchip.com, you Relations comparing
our have our our website. We outstanding summary posted also leverage a of and debt metrics on
end was time recognition revenue want distributors remind until which on the revenue sold standard are by were revenue adopted requires deferred during product where at investors new an the that the June be to I revenue such GAAP to our recognition products to historical our we quarter the of distributors customer. XXXX, to policy versus transactions sold recognized
a End-market our with million based Therefore, quarter GAAP sell-through distribution $X.XXX we earnings our also conference not GAAP December continue than on we demand XXXX provide release. in December performance P&L results but measure track and will metric we will a each quarter plus sell-in, activity end-market in along distribution $XX.X for investors provide discussed this provide with end-market billion. was revenue earnings sell-out non-GAAP demand. on in our direct XXXX called demand based to As our previous on distribution quarter. and and calls, the about more in internally will demand end-market the based demand on End-market revenue was our based
I will on a our acquisition and net based on compensation activities, adjustments sales, of operating including referring operating and I be in go now to is which will through press some expenses gross share of described basis, effects results margin expenses. to based certain these other release. the prior the results non-GAAP our as
in were which sales the December sequentially high-end X, was and our XXXX. updated January down near billion, revenue $X.XXX guidance Net the on provided quarter X.XX% of
sales line GAAP and of net posted geography your our We for website our and demand summary product by have on a end-market reference.
above the On our margins a diluted were was XX, and which EPS guidance non-GAAP XX.X%, our high-end non-GAAP from was earnings above per provided Non-GAAP XX.X% high-end operating million. Non-GAAP guidance. was X, $XXX.X XX.X% share were income income XXXX net at operating of the of basis, was expenses $X $X.XX. gross of December last and
Total share amortization of The million or million. share. $X.XX of $XX.X acquisition impact of based gross compensation costs $XX.X GAAP and $XXX.X charges intangible the special acquisition were XX% million, of and based per On include include net million income were operating was million compensation and of related GAAP of diluted $X.X million other share margins a $XX.X and $XXX.X expense. $XXX.X basis, expenses million,
related rights. to of the Our the certain December positively quarter by GAAP property transfer intellectual tax benefit impacted significantly benefit was intra-group tax
was The quarter. X% non-GAAP the cash rate in tax December
with any in tax audit non-GAAP our transition taxes any restructuring the X%, accrued the of related be of and fiscal to settlements global into structure tax exclusive tax fiscal associated Microchip's XXXX cash about prior operations to years. Microsemi potential for rate expect tax, We any
we tax tax U.S. with low. tax operating keep many that as next have our about six transition will attributes the to We and be and over net cash believe payments is credits will as The paid losses future tax cash expected years. be payments deductions $XXX interest million the and associated tax well
of the on tax We of have website. our payments posted a our Relations page schedule transition Investor projected
inventory of the December days from XXXX December at XX were end was days quarter, quarter to September. XX, of the down our XXX prior at balance distributors million. of in the quarter's XX inventory end had $XXX.X We December Inventory the Our at compared at days two at the level. days
We the of fiscal XX past days year been inventory was years, lower have the QX had current at our only where levels. distribution which one than XXXX, have quarter of in
cash The flow was million the $XXX.X operating from in quarter. December activities
debt consolidated and total million. million debt XX, the net quarter total was million. December cash balance was the We in sheet of on December the reduced $XXX As $XXX.X of investment the paid down by and position $XXX.X
last have down over the billion billion debt. and down Microsemi dividends debt the paid quarters $X Over in close $X.XXX excess cash this generation to beyond the to debt all aggressively of six our allocate we continue acquisition do incurred to of and since full bring substantially so, we
we market period, cash the generation accomplished which to during have feel the a our adverse most despite testimony and macro of conditions of is capabilities this business. this We
years. our levels significantly the several to expect debt We reduce next over
EBITDA in quarter and billion. our was month adjusted trailing $XXX.X adjusted million the XX Our December was $X.XXX EBITDA
debt excluding XXXX. XX, -like is to EBITDA, December was nature, debt net adjusted very at X.XX XXXX and equity long our in dated in convertible Our that more matures
were XXXX quarter. million in December expenditures $XX.X million. quarter was in Capital Our $XX.X the dividend the December payment
capital between spending in expenditures to and million capital million expect the $XX and in fiscal $XX $XX $XX quarter overall between be million and March We XXXX for million.
and outsourced. of operations add capital growth our in-house support assembly test technologies to are our bring of capabilities the for currently and new continue the to production We to products that and more
improvement We in manufacturing to quarter factories. $XX.X expect gross Microsemi the outsourced was these bring business, for particularly own and December some into bringing are that Atmel million. the we capital our investments activities Depreciation margin will our expense
it turn over now the give the to business the on his comments Ganesh? performance of December will Ganesh quarter. in I to
