MCHP - Earnings call transcript Q1 2021 | Microchip Technology Incorporated

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to Microchip’s First Quarter Fiscal 2021 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, Eric Bjornholt. Please go ahead, sir.

Eric Bjornholt

Thanks, Brandon, and good afternoon, everyone.

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 our important and you press risk may Microchip’s business as factors of refer with operations. the today as releases that We filings of SEC results to well our recent that identify impact Chairman and me President today are Microchip’s Moorthy, Steve In and attendance Microchip’s CEO; Sanghi, and with Ganesh COO. Ganesh financial our I as then will first the current our comments comment the results, well as guidance. their on performance, business quarter and and environment discuss Steve and give on will

questions. We to then will available analyst to be respond and specific investor

information conference in and non-GAAP release and GAAP including call various press this measures. our are on We

posted Investor the which useful We non-GAAP GAAP reconciliation GAAP at Relations believe and page full when you have non-GAAP www.microchip.com, our will find website our we to on a comparing of results.

to when were sequentially. were the and our quarter June other to described posted also our sequentially operating sales, XXXX, expenses, net will in leverage as midpoint is on June of prior adjustments some billion, a our of down have acquisition X% flat Other certain Net including expected and be sales, net will guidance our on upwardly We and these of release. sales to expenses. a referring on compensation sales from non-GAAP the and gross of basis, I be effects in share-based than go activities, through net margin our which now operating X, I outstanding metrics down above press results revised based results, website. debt X.X% the $X.XX summary which the to was

intangible were end summary non-GAAP and a strong was XX.X% net sales upperly posted million, above margins GAAP $X.XX XX.X%, guidance in Xnd. and guidance. income of and from share On basis, revised for XX% June net amortization upperly on manufacturing million of outstanding million, GAAP of by Non-GAAP $X.X and high expenses our gross million. was a of line our of our charges was income the include $XXX.X $X.X COVID-XX geography were on than restrictions The well June and operating GAAP operating at million of compensation revised expenses product share the impact of operating On was compensation as of share-based $X million a basis per activities. your $XXX.X were market share. an reference. the and gross and of $X.XX end of our non-GAAP special $X.X earnings demand high-end Total or $XXX $X.XX $XX acquisition margins per million the shelter-in-place at net diluted million, have were million, acquisition-related XX.X%, website include other diluted and as $XXX.X costs, all quarter, based We better income

associated cash by of during other releases outcome was associated GAAP in reserve variety to case expiring, the the factors, related tax the of deferred was June property rights, tax Altera The period reserve quarter. offset tax the matters. with and X% non-GAAP accruals the rate of with adjustments quarter a movements June by including benefit tax impacted of Our intellectual statute tax limitation intercompany

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

beyond expected tax as cash interest keep as we tax low. payments cash operating U.S. and net credits June well losses We The are we our payments believe tax be of tax have be with to many tax that in million. attributes deductions including made XXXX payment and out years, tax $XX.X will $XXX July the transition million about a the six paid that next will and quarter XXXX over associated the

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

historical at distributors June XX, was June balance publicly had was of of days right XXX June We operating experienced which still days. is from activities days the The cash XX XX the end days at at We million million. XXX the the past XXX inventory inventory from our quarter’s quarter, level at was and Our between were believe compared XXXX to flow we quarter. Microchip target and inventory end compared in stated distribution the in March. June low the to $XXX.X in have XX which XX $XXX.X the five Inventory over of for the days are down our quarter range to of levels years, middle inventory prior of XX the days.

million. $XXX.X do and million June down eight the $X billion the quarter the of $XXX so. over over cash closed As in total debt incurred debt total quarters, We investment and the and last of XXth, acquisition of Microsemi full position June we paid was since consolidated to

billion We allocate and dividends continue to have $X.XX beyond cash of substantially aggressively down to our excess bring debt this paid all down of debt.

of our macro capabilities ongoing we operating our as market the to of adverse the which is despite business, this accomplished testimony period, as well conditions feel most and this have a discipline. generation cash We during

continue to years. expect significantly the We several to reduce levels our debt next over

our XX June in was $XXX.X EBITDA Our million billion. $X.XXX was adjusted adjusted trailing the EBITDA and month quarter

more in to down our of X.XX June of very at the debt end XXXX X.XX and was March XXXX. life EBITDA, excluding the net at adjusted from convertible matures end that dated long nature debt is XXXX Our in equity

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

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

and of assembly new as test as add outsourced. operate operations bring some currently for internal to our are to continue maintain well production that products We technologies to the and support the selectively operations, capabilities capital and manufacturing in-house

these that into activities I us the give Depreciation expect will we and for improvement June outsourced to quarter. own the the investments bringing factories. some to it bring the particularly gross was turn now million. We Microsemi expense Ganesh performance the to quarter on comments in over our $XX.X are will manufacturing capital margin Atmel June in business, our business of Ganesh?

Ganesh Moorthy

everyone. Great. you, afternoon, and Thank good Eric,

microcontroller Let’s start our our compared GAAP sequentially down X.X%. as to GAAP than by On demand our our taking X.X% business microcontroller performed a standpoint, In the microcontroller basis, quarter, better revenue expected. weak was environment, a a down was basis, up closer at was market microcontrollers. look macro while microcontroller we business from On an a business end year-over-year March X.X%. sequentially

the represented RAID traditional power customer sensitive to our switches. to greater end controller, which stands of advanced but introduce hardware first generation industry’s least, the innovative SmartRAID end designed higher for market automotive in – controller last and demand the inexpensive and reliable peripheral provide ray quarter. require continue the new applications switch topologies family, And the enables not cost for fabric scalability, Generation in overall of XX.X% Adaptec solutions, complex no PCIe adapters redundant that smallest family microcontroller performance. protection disk Microcontrollers lower family, of performance data stream high XXXXE safety We RAID, latency including grade and Switchtec X which functional a ready, PCIe touch AVR maXTouch a steady with with microcontroller fabric June

a moving to sequentially Now our up analog to analog. X.X% revenue compared March basis, GAAP On as quarter. was the

performed On analog X.X%. macro from business year-over-year both sequentially environment. is basis, While better was than midst standpoint, X.X%. the GAAP weak in a down our market scenarios, our In of end business an down our analog analog we expected business a

innovative an of of over applications. vertical During expanded to miniaturization medical rays, XX the end-market quarter, and channel a enabling analog introduce analog the including products, transient multiplexion, announce voltage portfolio we Analog represented XX.X% June demand of steady ultrasound and in stream our XX quarter. continue further high-voltage a of suppressor

revenue, FPGA FPGA to XX.X% down was March GAAP was an a end-market quarter. the X.X%. From Our standpoint, on down demand as sequentially sequentially our business basis, compared

in significant who results. aerospace shut this September basis, customer FPGA Our to FPGA On September grow resume the we business GAAP sequentially restrictions meaningfully the production down being were quarter the our resulting quarter. hard had customer for FPGA much the June quarter, to due quarter, year-over-year lower-than-expected business was in X.X%. business COVID-XX entire to unlikely pretty the Despite are a expecting in in down one

to During all in take applications. accelerator the advantage create quarter, vector we developers end-market Microchip’s innovative steady kit, low-power stream of our of continued a to network the FPGA of introduce to the enables represented software neuro quarter. FPGA which X.X% demand easily June FPGAs fire development including products, blocks

from quarter refer to flat and the memory was licensing, March standpoint. an to product other Our as as end-market which we compared LMO, demand line,

signals designed scientists quarter, precise accurate commercial the aircraft data for Noise systems, who rely new and During of centers, a and Phase introduced Analyzer, frequency XG military engineers generated on networks, vehicle, we nonfactory space communication from impact and for and operations. its our on coronavirus of represented our update June of metrology continues LMO satellite base demand in work regarding and end-market XX.X% to employee applications. quarter. An Most home. the our measurements

strong productive global thank circumstances, teams development to Our resulting for to results. programs. new in as effectiveness to engaged, for under new collaborative conditions continuing needed been We the customer our and our highly and would in deliver designs worldwide like have adapting teams product changing while engagement

Philippines delinquencies May and the from partners when end quarter, were the better-than-expected our constraints in through April reflected the out in mandates in dug throughout output shipments quarter unpredictable our Malaysia, most our had in outsourced we By of manufacturing various effect. accumulated as and of that the especially constraints and Our those operations, of government June increased delivered the in worked June results. in

endure May. also of the primarily and our chain April month customers their supply logistics, Our of during and constraints and partners some factories

the of an from time and be from we lead whose experienced due the many orders with partial by orders in May customers we initiatives decline customers’ second, some the some automotive time from support example and slack As biggest short which sharp the in supply COVID-XX that the medical can some primarily that and work-from-home like of quarter, frame through three placed the devices; supported recovery we June third, of factors: industrials; some May business time being in customers to not has and First, conditions short customers, could business, progress to June, expectations lead March-April chain. due in experienced strengthened in which a unrealistic

with so them to we that serve visibility backlog the improve of working may are their customers better. We our

Given the we markets. current into our principal end some providing are dynamics, market insights qualitative

we’d market for defense XXXX to end revenue, that and the data, XXX,XXX the revenue. end-market customers of over consumer quarter June and provide provide at served of from quarter XXXX few revenue. center for Data can estimate Communications revenue, base, of analysis best center complexity share would some years. we year that at is track revenue shift given trend done our fiscal this like our context, Microchip do largest industrial to only here strength revenue. revenue, market, computing XX%; only you. at this collect quarter, share work-from-home the like we by for before automotive, in our with of the our customer by you of our fiscal year we Now continued and data June and show we to to with accuracy. XX% XX% end requirements. with commentary XX% and the the at first finally by something of on is XX% Based it of next so for and remained was to are Computing you is followed with that laborious aerospace to data estimated, backdrop high We With it remind June every not and insights XX%

car may we to demand production to the as China revert start in that and the months sequentially, anticipate grow, more patterns China benefiting Automotive search these However, year-over-year, sales automotive segments coming and to requirements recovered our in nicely normal dissipate. business.

and hospital that to related worst strengths and as delayed see by of see devices Our consumer for believe They respirators, factory such the widespread all were were to system, hearing strength devices home strong, touch large ultrasound scanners were MRI a procedures. that temperature Medical other increasing June treat increased ventilators, adversely to behind procedures recovery needed hospitals COVID machines, projects broad-based automotive as UV slowdown of at pacemakers, is some we for shutdowns. a ultrasound related infrared necessary strengths aids, had did industrial business patients, We air impacted of defibrillators, filtration us. the oxygen monitors, for automotive in a as controls. and are patient else to elective the very April generally like May poor experienced Even consumer, markets, began home. addition gaming, industrial, related improvement quarter people for everywhere loans. automotive portable elective systems, in to machines. In host and were equipment disinfection a those generally shelter In within to towards COVID-XX. hobbyist and the pockets which weak, and individuals rate trend the Medical

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

Steve Sanghi

be Thank help COVID-XX groups sequentially and chain our take that units, you, Ganesh, billion sales operations, of results proud down well I’m to came and culture a success faced quarter global quarter. net employees mutual cut that a with provide support guidance ensure will team and the $X.XX the I what down Microchip X.X%, despite June of and the superb supply people challenges The would Today, customers challenges, in and pandemic, of XXXX, X% quarter guidance our and safe, ago afternoon, so together a of delivered only of delivered would demonstrated the fiscal we while we be reflect middle constraints could the rapidly Despite business we the engaged for from Microchip partners first I faced. only first the quarter. then of our our its to XXXX. new adapted and year all the marketing everyone. good fiscal best represent the team served for of like provide to how on was global sales working of then pandemic quarter the second

are be X%, early to Our demand the X.X%, original ended against be we sequentially, the at only down X%, of sequentially. midpoint. it the we revised was dislocations. at In at results and net simultaneous guidance exceptional midpoint, These down down sequentially, sales and backdrop to supply June,

operating I XX.X% days all cycle days. margin XXX gross at reducing We pandemic. basis to also And above X, guidance. original inventory XXX days from am we this points non-GAAP from outstanding delivered of XXX guidance the bottom producing XX.X%, the proud above margin our margin business amidst did midpoint our May XX non-GAAP of while near of operating particularly midpoint global of our the of points the and XX.X%, original basis of XXXX of a

$X.XX $X.XX $X.XX, a above paid the was and our we In XXXth of our EPS guidance. our midpoint our the quarter. consecutive guidance also midpoint non-GAAP consolidated of debt. Our non-GAAP down quarter, the revised above profitable of original June $XXX On basis, this was million

efforts our strong debt billion of and end strong ratio underlying the our weak cash as been to underlining business down well the uncertain active capital characteristics conditions, – of been pace generation the efficiencies. of to leverage our total the strong, $X.XX despite working as business squeeze about continue June payment The XXXX payments net debt X.XX. since bringing Our has has to

strong in mix a the will May and bookings guidance September were received June. distributors But we did have for of as May our higher and and I the a orders. April, our longer-term much not quarter customers in the after place soft the March near-term to June visibility and discuss had Now requirements bookings

quarter be to the the X, it up April backlog aged quarter on for quarter, filled the While backlog June XXXX. down left XXXX, September the on to compared near-term July bookings to X, X% June

the were prompted time customer the those to ship us amount aids. quarter least This them letter their we lead left them and came time and weeks business also of cycle according to their requirements environment able requirements. our for backlog large first informing to backlog Then because We at request write products. and all place out distributors, them build ask unsupported a of inside of not our we to our to to of customers a of XX June

give better would an are expedite orders. need since informed expediting of we of distributors the the respond order, of another and to nature us of such just an distributors more letter, service material that some trying we meet we revenue. disruptive customers fee Through has encourage also We our that if requirements. visibility never for they to ask given to charge overall month of our our so can belt the the we letter, customers With The charges bookings been terms now seen increased. the have in expedite have under their and rate customers

with of their June the help to financial June lack of is which we evolving on Based sacrifice in employees the we A form our results consideration, of us on relatively gives in to sales a exposure, our there salary during back are visibility September a to much uncertainty these to quarter flat gave conditions. we account be backlog quarter improve quarter From range for time, currents, COVID-XX May guidance and the end-market same strength sequentially. capitalize we for the for same June weaknesses COVID-XX June X% end at weak for net the at a strength, the and during broad be September backlog our Ganesh’s Our quarter, consider was in into the ability down Taking expect associated better-than-expected challenging between remarks, all contributing heard June you the below is bookings point tailwind the them headwind a to still to whether The quarter is the compared strengths market. time. during common well cross backlog an quarter. bookings as that believe several the among standpoint, will but of continue September we quarter now stronger to given end-market diversity compared or The have denominator and of whatever bonus. quarter the situation. factors the a the market to half

to have quarter cuts uncertainty. maintaining in the due the salary we September continued However,

in off. now of XXX we are Hence, XXX schedules middle adjusting the at removing also to target. XXX right the factory inventory time our and days Our days is rotating the

For between non-GAAP expect September XX.X% gross to and margin our be quarter, we of sales. XX.X%

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

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

share We between $X.XX per earnings to expect be to per non-GAAP per share $X.XX share.

pay achieve We are the September term debt our challenges, the $XXX market diversity of also end in that growth the expect the semiconductor and are the of in quarter. in despite we of believe to average another down pandemic-driven strength we growth. approximately confident We markets near long-term in million and businesses to excess

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

Operator

America Thank come you. go first Arya will from ahead. Please Instructions] with question The [Operator Vivek Securities. Bank of

Vivek Arya

get just it months where the remaining the guidance of of quarter? for Thanks improved assumptions better? it your And bookings do? trends what somewhat you I think my what bookings frame does trying August in giving is? are your bookings the for you and get some assumptions are Historically, what in in what worse? Steve, Does versus trend September quarter? the stays assuming Are mentioned do historical that to the environment question. and I’m for taking kind July. this it guidance Does

Steve Sanghi

normal thing is not trends, be any a first that looking just would say I you not this past is should Vivek, So because environment. at really

requests the by end customer market, the are. and is what COVID-XX really and customers and market Our visibility bookings and the backlogs distributors of all what of and by end driven effect are expedites

and go strong turns a if bookings that be in quarter a a all So with stronger be be lower often really have would – absolutely in backlog bookings if visibility. would weaker into just on depends it will and the lead you – time you backlog

of basically customers. very, with weak and our So the with backlog. quarter visibility into we decreased distributors the very quarter start this started we – went Therefore, by dramatically a

a the strong the March the China New started we And quarter, and X backlog. through June accelerate June a April very June, the June from different the and recall, the on during from totally declined From it because actually to was April what from with normal you that. coming year of reverse a was a then strong June, quarter happens in – time. Chinese is all this to May bookings quarter bookings May June quarter of turn and which new and very If Year

September, But good they’re June couple was bookings looking July, is the starting. in bookings, again, at higher So than of average. also and August and June low a August July significantly just very just were run the August, from pretty even rate. up days of July for and

strong. the significant, point and the turns And our It So August for would really what will up in quarter be will and term near will those that��s expectation that same is make looks bookings September is still which bookings be guidance. against how June. improve, included from in our versus time

Vivek Arya

Thank you.

Operator

Pitzer with question you. Thank The from come John Suisse. will Please ahead. go Credit next

John Pitzer

Hi, Steve. for the me ask question. let Thanks

in backlog you of a down curious, days that least quarter. But September you backlog look into kind guidance said comments backlog us help the bookings. is backlog and fairly your I X% You initial September the understand believe to for of your at have from guidance period time haircut of and guide, about took how didn’t June significant XX if go the into June the that ago, comparable your today? does back I’m the kind relative heading heading you sort coverage to normal to can just prepared

Steve Sanghi

John. thing, same So

in the a throw this environment, graphs you all pandemic-driven will conclusion. away old think, because wrong reach I

quite it we correctly? strong. backlog, was think – it up I our the Eric, was gave do recall X%, If our you And April on X, recall, backlog guidance I

Eric Bjornholt

our a go to March like quarter. in back in was X.XX% the second. I’d book-to-bill mean, I have

and… entered weak with we so And saw strong backlog, bookings very we and then

Steve Sanghi

from X% was a X% had strong And very down XX%. gave backlog. which be to original or to we guidance, to guidance, actually we XX% So

This will started midpoint a that being said guidance and up lower down X% X%. near deteriorate – is is the and lower, our the where from backlog backlog X%. basically to it X quarter April we of is X% down started reverse really down the So than

this we’re So time, improving.

in quarter increasing to the the this Why? the We the And are quarter, backlog expecting during quarter. bookings to are comparison during last bookings improve Because quarter. visibility, five all no in happening what’s in pandemic, happened driven, to end-market years. happening happening last what’s others. in there center, really data in quarter automotive, it’s last And is declined the correlation what’s what

So the throw past all away. of seasonality

John Pitzer

helpful. on internally acquisitions, if you update We’ve the seasonal. look quarter That’s or like Steve, what’s I But normal September and give I seasonal would guys sequentially? what just you can what all us you struggled, there. a think on all could add think with Any on have defining normal

Steve Sanghi

in the trade global to seen normal, then and the pandemic. years now we all environment and of has the last tariffs with first, normal sanctions Well, become couple haven’t the U.S.-China and

so seasonality would a or throw seasonality our stable figure a aware. acquisitions. future anybody’s have for in it And be to with year have to would be the we the whatever that out environment be would once So now, what guess. new right now Right

John Pitzer

guys. Thanks,

Steve Sanghi

Welcome.

Operator

Thank Srivastava Please BMO. with The will from ahead. Ambrish next question come you. go

Ambrish Srivastava

comments Steve. understand well. going make clarification just you, I your for a I to I’m want ask correctly. Thank Hi. to as sure

and short But time not quarters lead progressed you And then quarter that last now the So were those had still sense but meet it progressed, the that – like orders orders lot you – with trends. then that how up just of a your are what about it little September last reconcile could quarter? quarters you I’m sounds bookings to that explained meet. as the the could confused not deteriorated it, assume on now shorter That are you orders time how quarter; coming the Should be quarter had to lead delinquencies fair bookings then is that the on to that a this as in heading you they met. those bit because all I what lead not trying on reconcile fact scrub? time the based quarter? in the comments short made into booking deteriorated,

Steve Sanghi

some if see can of clear I me confusion. let Well, the

we April. fairly with backlog, a reasonable I up strong June the got in quarter we So And Eric then that. or so, X% started correct bookings and recall

April So a good was month.

So we’re in so slowed still May June. in looking down bookings significantly and good. But then dramatically

we we the the started And the the therefore, sense continuing increase So were through strengthening, bookings improved left all of into near-term those so are the the in quarter down short quite after higher, the been slope low. that whole, at make large more midpoint From delinquent on but And of and June bookings, low the midpoint, our now? meet from amount this but shipments in we are bookings last of near-term, And were normally the of bookings from at July. if same the though quarter that time, at quarter those orders, somewhat, and at delinquent. so from high. bookings even quarter. some improve we’re able a a point of since was the backlog orders time May, the we were of X% start still X.X%, quarter much came there day will are orders still percentage very is of X% minus have that quarter have quarter. we bookings now get the But the whatever of X% guiding now to than minus terms the lot increasing quarter. to at in were means we bookings beat lead shipped bookings rate a even X% the aged been outer-term, that still were largely Does was But lower the bookings the day to the – And will have And go. meet think the the to. guidance versus aged minus very because has minus and some the of lot of original bookings to the last would an which we did not

Ambrish Srivastava

It one stand the same then does, as could than I today prior that that was if what in Does And Steve. mean quarter? point you clarification. the is visibility at the better ask more just it

Steve Sanghi

visibility is any don’t think I better.

is visibility from March but think isn’t very it June, I low. and improved it’s That’s why May improved April. from and

April end knows very and had just pandemic were states, and quick sight, nobody so Year, and quite – do everybody people bookings, there had March went what’s think many and the come get a China were longer. happening. New the In longer has pandemic, want was People of back it’s to strong longer Chinese to bookings. And from a end in expecting lot is And no there reemerging. short. I now

Some week. higher are going still countries every

now the in May It’s slightly not are and customers was distributors better and So June. long-term it than orders. giving

described, and I we and to bookings in are September. continue believe may As August improve it the higher,

Ambrish Srivastava

your helpful. safe. stay Thanks Okay, is that for and and patients good luck

Eric Bjornholt

just the that number to entering quoting on or the I’m June is comparison going heading to that compared X% that accurate he the to backlog the Steve X% what purposes the quarter, into opening quarter. minus add our just X% confirm said September And there, for terms is to of in down

Steve Sanghi

is comparison good starting where September a up down and June X%, quarter So X%. quarter that’s started

Ambrish Srivastava

Thank you. it. Got

Steve Sanghi

believe will from guiding – I’m deteriorated go from that we X% – quarter June other to. go And will improve will quarter to we’re that minus to improved the minus X% X% way, minus sorry, quarter X.X%. from this the minus And this it also

Eric Bjornholt

Right.

being entered where at deteriorated X%, that it down to we Just the finished point quarter quarter backlog to clarify and the up X.X%. June with the statement. We

Steve Sanghi

Correct.

Ambrish Srivastava

Okay. Thank you.

Operator

ahead. The you. with Craig go will Hettenbach come from Morgan Stanley. next Thank question Please

Craig Hettenbach

as just is Yes, sustainable? then coming and geographic feeling strength from the thank by Do question, you New some a are like growth about you mentioned, was think initial from driven of you. China China how and back Europe you a China, America? Year. the Steve, North other also, geographies perspective, And just

Steve Sanghi

do to want that? you Ganesh, take

Ganesh Moorthy

Yes.

parts certainly live other we But the is by So last do. China stronger affected China was in isolation. of China than doesn’t expected. how quarter world

baked into the the on go quarter, still in weakness that’s we that and weakness that but as have anticipate built. some impact is Europe, so well, And guidance have all doing Americas we China September in we into would it

Craig Hettenbach

it. Got Thank you.

Operator

from ahead. next come The Piper with Sandler. question go Kumar Please you. Thank Harsh will

Harsh Kumar

Hey, Steve.

everybody I’m about. ask to is talking So what going about else

demand, So to completely and saw of demand, but good customer are seeing the now place you quarter, towards like like there’s orders. they it the sounds sound end starting short-term but pivot last you’re

job. to my guys you as So great a you, you do guys talked, question

You’ve got lots of customers.

You flip do in up keeping this with the you manner? a good job customer is What them. think do making

Steve Sanghi

their I certain are the end certain a countries and in and think is COVID in customers sure COVID-XX. There really low the customers sure. backlog resurgence our and customers States, not run all United have distributors not what are from it’s would states direct be. of Customers rate

know we’re So they to need and not do but that today, short-term sustainable build getting product customer, orders to they to a demand in September, delivery they whether October, is frequent the that have in for deliver November. their in

billings So we as we’re have getting many pipeline. – the orders fill longer-term strong to But getting orders getting go. the as we’re we’re enough to not

our being lack orders can’t with short-term but and the we with guide in we strength fill Therefore, fairly quarter, good We say enough was ended this get but there know could certainty. good. billings there happen low with can’t we backlog enough all, visibility. quarter, were of last quarter. compared to for that the saw certainty is same that that we quarter, today the last to And chance could we As point

Harsh Kumar

margin from Steve pretty your are and stable your down enough, revenues quite steady, on a follow-up, pretty based Fair is sequentially. guidance, but bit, my your

on Just curious that? if you have any thoughts

Steve Sanghi

a results the it at look and at look little should you so year-over-year. Well, bit

pack look actually, for year-over-year we’ll So and our microcontroller September and year-over-year, be overall kind more when the than analog competitors. the of semiconductors is better you guidance really in most than much at of

different. seasonality is everybody’s So,

it is about, now? automotive is Ganesh, business XX only Our

Ganesh Moorthy

It’s XX% the last probably quarter. after XX%,

Steve Sanghi

Yes.

about is XX% some business automotive and our XX%, XX%. it’s So, XX%, our of business our competitors, of

they a down. automotive when industry the so last larger quarter. Automotive in So, down or XX% hit the took much was went

of this seeing our similar our so business, impact will And recovery, be are XX%, they larger – but a recovery, XX% business much being seeing we’re a only lower.

Harsh Kumar

enough. Fair Steve. Thanks,

Steve Sanghi

did So, quarter. we last better

about moving results doing some advanced larger TI of than and stuff far I internalization, quarter, the talked before. restructuring as all look And at as sequentially, year-over-year, concerned, a This our of our parts, question if are have is have factories is we’re been worse but margin you mean there competitors, others. we more our the lot on better technologies, of margin, assays

of think we new growth will best top on And this have of the self-help a and when record things margins, any margin which to record lots line, operating bear, tailwind see this by kind the and I done. gross all to in cycle the back have brought you and driven really been has operating So, margins. these business we on of is performance things margin goes microchip, recovers at because

Operator

Capital. next ahead. The you. Harrison will Please Loop question come from Shawn with Thank go

Shawn Harrison

Hi, question. thanks for taking my

Just underutilization this follow-up. was clarification a and the in quick charge quarter, What the Eric? then a

Eric Bjornholt

about in and with was million. what was line underutilization it right the That’s quarter. March The $XX.X

So flat-flat canceling.

Shawn Harrison

give kind We demand sharper seeing to know up where maybe, and the where be contraction but rate, seeing in production are dead if would of will you markets of quarter. helpful. market beat September environment. end the on horse could automotive be sharply perspective, the a kind are the volatility you Steve, in there an contractions or demand. that but end bookings you’re more

Steve Sanghi

I’ll Ganesh? it to Ganesh. give

Ganesh Moorthy

Yes.

on, in the quarter? related think you end gave I flavor are seeing markets time remarks, June some as start prepared and work-from-home we which I items. we center, to going different reverting by example, of what think in are And goes for So to some these of my data normal,

industrial recover. you like the first be the to then to quarter automotive parts continue December the what to of and the other that good the the September gotten need need. and And expecting We’ve to some high were begin you’ve don’t a a in level. should Once we’re initial months of and June be at You automotive seen put good already several below bottom be buying to likewise, past phases that and we’re those expecting ones be in in segments.

COVID-related people set did parts go some parts, parts will what would pushed got out, the out So, another consults you elective push homes. of of up because it go where Other out because medical items. elective. medical was of can’t really well, come forever. was their example, elective are back, for not I to willing

time be, things recur will so will that strength, be as more I months. are that coming the goes some in revert the could on, have back places the ones general, think in And that’ll of normal to stronger that the and

Shawn Harrison

Thank you.

Operator

next ahead. The go question securities. with will Please come from Wells Gary Mobley Fargo

Gary Mobley

Hey, your looks of to for guidance my guys. somewhere quarter, south you believe you’re delivered taking and I I $XXX Eric. it just quarter, thanks start might with cuts the some things OpEx turn from first than about more the questions ask other to opex for last get to like travel on to for in wanted for just what trying decreases the and wanted XX% year. down, I oral like guys OpEx, that begin like sense of per billion question. for you salary that’s various of How lower side, much what is out? look once a

Eric Bjornholt

about are that last And I think more with the of talked we than when I that’s mean, And pulled out. $XX is, really cuts back quantified but us some about salary of million run a being we some is permanent I haven’t quarter rate, employees is they those would were what results So, quite quarter travel, implemented, them, say at this the Steven significant. like probably good. that levels pretty because quarter quantified the we temporary. last that Things per to of giving

the effective although permanent functions, in adjusted level, it be working we’ve to of very overall different I some travel, back in a to from home think will that. as people think come will the I going doing throughout And organization from become is savings. that higher

the job costs level, that managing lot top-line are of in. given expenses employees taken for the back and managing doing of that the some salary business of costs, of and the out come that where as higher manage a tightly we’re returning very in but the but think is. and environment. we’ve of to I in the overall, we’ll will operating improves, a environment So, P&L bonuses absolutely cuts those some the we’re terms to a appropriately, those growth the good

Gary Mobley

capital? speak opportunities you expense your rate look low net the well, hefty your draw that Can to debt for debt a I guys be follow-up, wanted your lower. of pretty debt, to the new ask the like looks substantially to might the be expense, given norm like the may environment might result, structure, maturity we’re interest what additional the of a refinanced interest and as Okay. of about the norm extended new what interest down amount and it you in, cost as

Eric Bjornholt

Sure.

table had and the used guidance non-GAAP payment. we’re pay then are million which of for off the notes quarter, So, $X.X that’s pay early, these to our generating everything beyond amount markets all a debt debt, about of pretty and most basis the in and line off quarter, bridge secured and expense obviously, the release The is of quarter the on cash last down were we good interest occurred using for amounts a into that that we under the the is factored some that a debt that and transactions guidance. active billion in press since off you’ll rate senior our of converts $XX other a issued remaining paid paid capital on see, dividend to significant And is funds credit. run we’re expense, in of a guidance loan,

Steve remarks mentioned prepared pay debt. current $XXX so the in And that to in of we down another his expect million quarter,

million some rate comes quarter coming we’re So, the from some that those we’ve the happy the We’ve remove and convertibles done as in that comes retired debt and transactions down repayments. the probably is and of the to about the down structure quarter. rates debt pretty expense interest June reduce with ongoing nice through that built $XX March run dilution And executed nicely. will that from we the that things

Gary Mobley

Got it. Thanks, guys.

Operator

question The Chris from ahead. with Instructions] you next Thank the question. come Raymond please go will for [Operator Caso James.

Chris Caso

you. Thank Yes.

here. couple a of clarifications Just

the be using decline guidance should about. customer’s Your the baseline reflection think a look just as year-on-year to tough takes we confidence that Or you an we December And sequential puts about quarter, is here? any increase on year is in with Do of we’ve does we bookings, now? receiving we’d really what nature of that December? see you’re talked X% you’re the revenue accurate suggesting provide a a of as of the that with that orders and that given sort into call of too forward based what that that that X% into that you the your go degree is seeing short consumption is down all

Eric Bjornholt

and well the think, really the I’ll report, now, based two on take They’re numbers we not wide we tell when demand apart inventory were two years that apart that we I part end-market you the together. question of selling predicting were they number, fairly come sell-through. revenue that also far for first is that based those which on ago.

September represents down So, X% market if in year basically of we’re that the guidance versus quarter September demand today. last quarter

that So was your question. part first of the

what expect trying do number? part what to say? we was, second that you’re The Is for

Chris Caso

that you filling Yes. that improved rates order into December also But was – short. And the the in it very the orders orders the suppose given the fact, very sounded like of it that that were I short of was July. aging the mentioned quarter. –

same now the – in more you quarter. getting makes perhaps And call. visibility, this that it you’re would difficult typical that perhaps a So to you’re getting not

Steve Sanghi

will depend would we It the on December. come in situation, barely does the I can’t COVID vaccine environment, of this we out, in say, what kind call is can call remain and happens go go September, the will will work, Does starts. away. quarter factories to back of to December before schools open, cover There all fears those October open. now really lot everybody ground between

December willing I So about say, yet. to would I’m say much not

Chris Caso

Got it. you. Thank

Operator

come Company. Thank and question. The go Needham with Gill will you. with ahead question your Raji from next Please

Raji Gill

Thanks. Yes.

past just repeat. kind to but of this answered the You in might’ve question,

plus June direction minus about as X% other And reversal X% quarter, reversal we felt into in going go X.X%. we’re the seeing to dramatic going minus from a minus we of So we the September into to entered kind X%. a

were those or so negative. And either reversals positive

it basically operating If were visibility getting short lead primarily based up, and sum it’s very lack of are your this customers complete that on to you times. on

Steve Sanghi

data worst industrial on affected there. We markets. center end and the end all other the being differently by end, of is the and the market from Every some Automotive computing six was that. being best and work COVID-XX. basically and serve home the It’s medical, next market the

behaving market very And COVID-XX. markets, different. And by is customers quite is almost driven basically it’s I end each really the are how differently by backlog think that. affected So by all

June, we really seeing to are – and bookings is and in we we and and next getting to October. are week were need May not what next back the we’re September for what bookings So, today this But today ship not week not bad and getting August week. enough

good enough for July, booking yet August but So and September, not the quarter. got – today we’re planning for July, in we next for good bookings

we to in are not has enough in the September that bookings. we the August we proceed also get the as in especially August get got So fill hole and a quarter, we to bookings to when and September, only it, need

X, loader, purchasing just the because is correctly. a start everything month holidays. of the short October the controlling COVID-XX else. all because and managers quarter frontend it’s December is on really next And also emotions So December and is habits we quarter people’s And

Raji Gill

product. down I sequentially are patterns. margins a declining, being sequentially, revenue center flat And revenue terms margin appearing the normal of presume gross be data revert even gross in to data X% to holding so of my higher kind despite with so follow-up, margin, though center back is might gross

and margin utilization is talk a takes just you happening? down? flat, despite revenue that happening in terms can rates being which So shift of a that’s is Why mix – good puts thing, are coming the little

Steve Sanghi

want take you to that So, Eric one? do

Eric Bjornholt

I can. Sure.

gross gross reiterating couple still have maybe about margin by our And and posted last piled things underutilization that COVID. China just quarter. the trade that, we’ve margins with how of million various pretty the last now Even experienced just up. charge $XX.X proud the we’re start So XX.X% years this

levels those with said, we’ve of broader And gross and given always XX.X%. little XX.X% this good and things utilization range there’s mix So quarter, things. guidance margin of normally you sequentially. all between see as do pretty We it’s the midpoint stability flat that bit impact product a guidance, margin gross than we

a wide and flat a pretty that we’ve So range got between also to X%. revenue there, of we’re down guiding percent but range

continuing a keep cost under well I So we’re can to do right the the think lots costs Gross and in we been maintained. takes, the is really to to things puts all of terms things of in margin, where cycle structure. improve but how bring they’ve kind highlight in-house control, of

Raji Gill

Thank you.

Operator

ahead. you. William from Thank The with will Please question go SunTrust. Stein next come

William Stein

to press Steve, is question. resurgence your are partly Great. at seem what for some in in the prepared investors attribute the comments today, remarks bookings, the Thanks And COVID. that and think taking pace you I in slower you in least release that made of concerned to my digest for related be in over some customers then past may it. and Meanwhile, slowdown Microchip’s figure that had recent sort year. delivery have you the seem expectations deep having the pretty to out customers with the to ordered to customers full conversations instead market have to about of against end

from have discussions, like. So I’m inventory those wondering if what levels perhaps you a are sense customer

seems lead Thank short Now insight and you. they’re it’s ordering production ordering very times, would me, any for not really stock, probably safety help. they’re to if but regard on this in for

Steve Sanghi

the with business world. distributors do of from tail. XXX,XXX around and of long over them hundreds XXX,XXX we Well, buy Well customers

situation. market. our good done to and customers, in able reasonable assess XX-year on the XXX,XXX being a many, inventory of for they If end the had level. aware are aligns holding lead floor. Again, down on of in inventories cases, floor short methods hold of my lows. cars. we those not We’ve because requests get were to expedited if generally there’s time to cases, maintaining are each so We’re by in production. but the so the broad short of the any many they customers, our delivering customers inventory and a circuiting we’re delivery still no and situation be job it we in range will charges the factory parts, their getting one didn’t need at term paying, many paying short a customers in inventories reason In performance and charge expedite have them sense quarter customers really some shipment our based are keeping or get right drop it our wouldn’t customers prior not our the of distributor of They we’re be good And inventory plus the

inventory inventory there, So not is is out if anything, low. high

William Stein

you. Yes. That’s super helpful. Thank

Operator

Thank Chris with The next come you. Danely from will question Citigroup.

Chris Danely

Thanks guys in. squeezing for me

one. through what approximately quarters? revenue over us China how quick percentage a Just and done of that’s you goes Can the last few give

Steve Sanghi

that? do have you Eric,

Eric Bjornholt

Americas so our that’s XX%, revenue Yes, comes XX%, that of shifts range. Europe of And it’s of XX% obviously it’s or into to consumption back China. in there’s XX% the some for local that but and consumption, that that some

Chris Danely

guys. Thanks Okay.

Steve Sanghi

So, quarter, consumption COVID-XX as situation higher much Chris, snapped business normal revenue appear June the in China improved local level more be the to activities, China. in in and to China back supporting

Operator

will next The Harlan come JPMorgan. go Please ahead. you. question from Thank Sur with

Harlan Sur

for of number the environment manufacturing the your in Thanks quarter, good hours Hi, fab the fabs. taking did response muted you for your afternoon. June employees in U.S. In guys the back demand question. back cut two to

some operations. work I manufacturing work to a down it just you like think it work it Philippines reimposing resurgence taking is utilizations regional of having and went week quarter? muted? an the on like just scheme COVID-XX further an work XX-week September as Or demand continuing Are trend of XX-week test a guys hours lockdowns Philippines – from – then the quarter. drive What’s an And the guys are follow-up, went the and in like from work to impact you quarter looks quarter? here is like XX-week an

Steve Sanghi

I’ll the question. So of part that first take

came comment down went our I into think you Remember, the XXX I guiding the days but before. to actually remarks that say last may my earlier, did XXX have quarter days X%. from the be minus quarter inventory missed in we down

we up, some really So if have the off. rotating largest our inventory to you at time were the want, two in down put time not the have off did take in operators factory, gone minus X%, which so would least we fabs

down minus back And we we only production. was better being X.X% on and revenue cut the did so than

of So that, actually the inventory came down. where the effect combined

all the those off around days Germany longer factory are Boston two other and no we we inventory, lots each now in fabs. where small the own in Those one schedule. XXX rotating and the inherited and has Ireland we’re Microsemi working the are from There plants their adjusted Over labs small, and time world of large small places. have schedule,

was are certain take working second longer short plants them demand of the one. of that your weak. working Philippines. weeks big the But hours. want are because question to part Ganesh, on Some products you no short And is

Ganesh Moorthy

Yes.

on the So we are aware we’ve What did not significant factory, given the adjustments at had, call, in that for are Philippines I mentioned the making. you have is, the since XXX we much term gives of people there – constraints. a Philippines our people effectively to May we a about we’ll short we we color live run is us flexibility operations of come there April. XXX to on our portion work conference who strategic the about of down It certainly, and had And are in March its at a peak, force still constraints. around be living factory has then able that employees any maintain

we while and we and what for where and something the have we Philippines feel control other unless be go that what we so And keeping might is may taken this need but happen. expect we We happens, different actions running. do to what to likely planned have not, are

Harlan Sur

Ganesh. Thanks, Steve. Thanks, Yes.

Operator

from Thank come you. Vijay Mizuho. Please The with go next Rakesh will question ahead.

Vijay Rakesh

environment. Yes. I at execution guess tough good

on give on you a computer industrial storage segment, of to color or little I’ve are wondering data any down center weakness when more there. for seeing guide your you being quarter more four look the midpoint, Just seen the some weaker September bit by particular

Steve Sanghi

that answered it we go again. before. ahead But question take Ganesh,

Ganesh Moorthy

by as required. catch So, the of try the that surge up had work-from-home June was lot new demand June were as That’s strong type and segments I medical the who orders that that very came to of quarter which some quarter are mentioned, what driven well. a running in us with of and the in have in activities, of short

– seeing we’re begins time. and anticipating trends, in surge at are to We normal that the revert demand of subsides to that is some point back

run, go I weak in call the I time. as of quarter sense, wouldn’t had but And the that surge call So some as in to business that that gets and continue weak that really also of returns the begins automotive required some long for were when it, part stronger. to weakness of it to would demand, the opposite on it side, that demand example things one make being likewise, have it as up factories opposite June correct the in a doesn’t direction you of begins that

Vijay Rakesh

limited And coming just short-term see demand wondering able visibility I orders, it. share, through any part not or on these customer? the mentioned the all the know nature of Got that’s or to it losing you’ve if orders, of of is or orders Thanks. spurt meet I you guess. losing risk it given of of part the Do just

Steve Sanghi

sources These all product that. between and are products. proprietary aren’t all These overnight that you switch go and

customers And us to constructively have to in on. to try to visibility the serve working – with to get demand don’t meet them as their I So, be in no, best our order and be any what’s able well, list going losing we’re of they we as requirements. to said, share and see

these short the issues demand the these caused shocks And expect term by are I don’t issues. to so supply and in be system. long-term

Vijay Rakesh

lot. a Thanks

Operator

for The next your go come question Susquehanna. with Please from ahead the question. with you Thank Rolland question. will Christopher

Christopher Rolland

for And consolidation? as would well. or And now, this of appreciated market? your Switching valuations view right acquiring generally one’s analog are targets now ADI the changing you anything be continue had that Steve. to if And on Maxim. have Do in you. the for accelerate you question. see a really this what we pace for Thanks for expect feelings you this COVID? industry gears, the during Thank Do even

Steve Sanghi

always thanks the for see ourselves we They’re against not a We competitors do ADI. compete acquisition threat of on Okay. space the question. in any the analog by basis. both we become get proposed of strong customer their both regular Well, with from they Maxim don’t arise, them And happens, business an and one. want sometimes incremental as all anytime that defend and acquisition Maxim – or combined opportunities wants ADI the they because see to sources when

So appear it. of be some to able opportunities we’ll that take advantage

then at really Marvell slowdown. we got approvals will and be at Cyprus that a China, approved. And to times terms merger looks it approved. get if from could are got is the And In digesting it approved, look of but of got it acquirers difficult now flurry one-time it – it IDT approvals. approved, environment, a the like Maxim got Mellanox large got

approve acquire who So if continues China the deals willing continue. will the consolidation still to these in and are there to acquirers then industry are

Every mid-single-digit. if look low a fundamental is, issue the a year, been the XX the people environment weaker anytime line, I will and the all of industry really but that’s struggled long at in. the will one sure. over time, other, consolidated get growth top the struggles about trends long-term, to stronger continue. And that’s and overall think then semiconductor for or acquire the operate But the has on tough of has it over years, to an these you thing industry last And industry consolidation period a excited various in. have come

consolidation. on view So really that’s my

premium mean, look And for for just going of valuation keeps question convince acquisition Maxim wouldn’t targets, most is and boards what and kind and their their higher valuation a is there I that the But concerned, think went already that’s it for and valuation. price the management in acquisition targets, stock for drives remaining at very, significant – As Cyprus event higher. I their reflects high premium. you the very

a that’s problem. So

Christopher Rolland

Steve. Insightful, you thank

Steve Sanghi

Welcome.

Operator

next Paribas. The from with O’Connor BNP question David go Please will come Exane ahead.

David O’Connor

what percentage me long quick can is? from previous historically Thanks. versus remind up. are follow order question, Thanks time Maybe mix just a us a and guys. lead typically just of versus orders in quick one Great. What sneaking the I short follow-up both for you Steve, have lead currently,

Steve Sanghi

XXX,XXX it’s changes don’t would think XXX It don’t And share We have to of we month-to-month. plus situation it. lot working the I when a week-to-week willing and with and be customers. very distributors and numeric, fluid you’re a

wouldn’t share indicator. So we that

David O’Connor

And follow-on, you to that it last military, of pretty ruling, Thanks. popped much Commerce there you implementation think up that quarter the you U.S called some Is for Department out guys, there. that attention enough. my was be went unexpected? said Fair the I should anything as you Okay. from straightforward export maybe that

Steve Sanghi

you want take that to Ganesh, one?

Ganesh Moorthy

no put need that to our in were that all in and done obviously issues. partners of is so be there place was and Yes, have put place There behind us. procedures or administrative

David O’Connor

Thank helpful. you. That’s

Operator

B. The will come Thank question FBR. go Ellis you. Riley ahead. Craig with from Please

Craig Ellis

versus a execution taking guys. start things with Thanks job I Yes. the question, to questions may I’ll ultimately Ganesh, It company go on the to the of to for has How contradiction think have the those you. executed continuous ask OpEx guys. crisis. be and are? full OpEx, eventually clearly you And drive Steve, some would what can takes but last year’s and quarter. think might company ongoing the structural demand really wanted Thanks that of gives are for drivers ahead longer-term employees to will us the the for do the in nice levels management going a list of as look The of helpful. leverage improvement back so and number is, to now key salaries That as efforts tactically about protect and some some at be COGS we and year, unwind question just that management we And things historically this things there? about optimization and high doing with margin COGS the OpEx that maybe through normalizes.

Steve Sanghi

if want take to that? you Go ahead Ganesh,

Ganesh Moorthy

recurring back about disciplined how bring back operating cycles in expenses. we we go how other are should costs our been can percentage that And and some the of costs of come at of have And revenue expect we historically fee are those the terms manage revenue you and of know, long, these costs as you there you look returns. many some of that We’ve back. obviously revenue out. some taken them, will cost that listed as I have So, commented is long, we short-term

Eric as things of into of think, more of rate they to being And I used number thing not training terms standpoint. an other we learn out there in look you switching come to crisis changes different a managing perhaps which and will mentioned we this, effectively we customer from virtual will travel, expense also to, they as higher more one did this get methods as for operating do methodology, of as in well. what out at

are and targets margin XX.X% operating administrative And quarter That’s in overall XX% downs. do can research we towards. is things things range. and expenses every in sales the general areas learn part that which we so working brings every our of to get that bit sequentially And long-term and a more committed development, target marketing bit-by-bit operating the and down it’s we’re we the we have, effectively, or to and where into

We items. the been focused the Microsemi, integration working predominantly on on business point, at bit IT have of last and this is the for related which process

about months as We’re done. wrapping from the nine last bits get of up that away those

some all the and take our capture in crisis. you of when a you the crisis, that these in you So there’s learnings is areas of constant make sure part three and on them get working DNA past best

Craig Ellis

Ganesh. it. Got Thanks,

Operator

Thank Pitzer you. from Suisse, please ahead. go Credit The with will next question John come

John Pitzer

be just more auto And that’s you in there a is weak quarter. it June please? Ganesh, the FPGAs to to September, for drivers and in prepared driving of the are, follow-up. September mentioned had Thanks you market? a you and kind that’s pretty numerate that curious, so we’re would up kind auto what I’m is taking my thought business the or of saying that other June strong significantly there comments Yes. can exposed are

Ganesh Moorthy

It’s the strengths. that our other’s FPGA business of that of So in one this point. of advantage is historical business we exposure brought to low strengths end-market to with terms Microchip how automotive take each for things at the

for making recover responding, parts but the in revenue if as the quarter that created quarter. and other in large the of spite customer in September expect June don’t are market we’re that So September, one the In expect lower other in they’re for that that providing that automotive. of September a going we in growth business, the the a more improvements the We quarter. than bounce not expect to it’s the offset we fact, was even

John Pitzer

any you. Thank I’ll you. remarks. for closing turn over Sanghi conference the Thank back now to Steve

Steve Sanghi

this in bookings other day, some on to And in the what’s the the to one it, minor number. indicator but same wanted bookings there questions We I’m than give is is were day differences. happening per give this than the I booking. how happen higher you and are XX.X% were I quarter. quarter there planned XX.X% on per every think bookings bookings hadn’t in with you. May versus July June got month limb last So all the going July The go not the higher we

the quarter how in really decreasing see could very and May in But short-term were then last precipitously fell oriented. bookings you June. were bookings So

beat So we Hopefully and will lot bit. coming started a last we better in whole, quarter we With a July guidance confidence the the this May made this the of we’re conferences XX.X% going end quarter, that actually but you bookings it weeks. the quarter and quarter, be we that’s helps a that attending X%, why than XX.X% now started to days than in quarter virtual number in better June, little the but even were better. minus up though that had

And much. so we will you those conferences. talk to of some in very Thank you

Operator

today’s and event. Ladies this Thank concludes gentlemen, you.

of your rest lines for the your disconnect Now day.

Microchip Technology (MCHP) 5 Aug 202021 Q1 Earnings call transcript