J. Bjornholt
Good afternoon, everybody.
During the course of this conference call, we will be making projections and other forward-looking statements regarding future events or the future financial performance of the company.
you or statements results caution that predictions to events actual may wish that are such and We differ materially.
to our the operations. you as impact Microchip's risk refer our results as may release We of and of factors well that as that recent SEC with business filings identify important press today
year second Steve Head me the as Chair; our and provide Executive Steve and with Moorthy, fiscal our XXXX of attendance on comment Microchip's Relations. quarter are In will will on Microchip's commentary President then And update financial performance. current Ganesh our Daudi, Microchip's our results strategy. Sanghi, cash Ganesh will guidance. well discuss today and provide an Investor I CEO environment and return Sajid on business as
specific be analyst then available and to respond to investor will questions. We
information We our call and on measures. this GAAP release conference press and non-GAAP are various including in
to page information at on a will We reconciliation the comparing non-GAAP find posted earnings useful our in and Relations Investor we www.microchip.com, non-GAAP release, when press full believe have results. and which you website our included GAAP GAAP of reconciliation
also have our our on leverage posted website. debt of a metrics outstanding We our and summary
through our as our in the our on activities, acquisition described and press sales, will expenses. the go of other prior effects the now will is basis, based these on non-GAAP and referring including Other adjustments net results to expenses which share-based of I to compensation results, release gross than operating website. be net certain some I operating margin sales, reconciliations on earnings a and
down which X.X% quarter September the Net sales in billion, $X.XXX were sequentially. were
geography our reference. for your our line We have net by website sales product posted on and of summary a
operating was income margins $XXX.X and million earnings non-GAAP non-GAAP were at net a share was and $X.XX. expenses a XX% On per was record XX.X%. Non-GAAP gross were basis, income diluted operating XX.X%,
million intangible expenses included $XXX.X On the were million, XX.X%, expenses. a operating margins acquisition other September million, amortization of million, share-based of $X.X special in gross charges of of total million were $X.X GAAP and $XX basis $XXX.X and quarter, compensation
$XXX.X record per GAAP record a diluted net income resulting in was $X.XX in share. earnings million, a
Our XX.X% was September non-GAAP rate in quarter. cash tax the
be is XXXX of Our non-GAAP is the related to transition rate exclusive fiscal XX.X%, any tax settlements which for tax year expected years. to fiscal in accrued about and tax audit prior taxes
the is Our lower expected losses including rate such operating than rate to fiscal lower higher expectation tax for attributes, in net tax current our fiscal fiscal lower U.S. capitalization of availability well the our 'XX, cash purposes. 'XX 'XX a be as tax as variety of in requiring expenditures with credits, of tax depreciation for expenses tax as capital tax R&D and of factors, for rules the impact
R&D repeal. tax still a basis be or expenses out this capitalize companies hopeful we future pushed point are were that to to If adjustment requiring We in non-GAAP anticipate periods. tax to about XXX Microchip's rate favorable happen, rules the will would
which was XXX the of quarter, to prior of Our $X.XXX flat September balance XX, We was inventory days the XXXX, level. inventory billion. the quarter's at end had September at
process. very the we as push quarter, have would by delivery customers continue able were to inventory requests as progress through reduced to we for far we much the Although we not schedules in as make liked, that products dollars accommodate to were out manufacturing
inventory days products end capacity partners, buys being of and to for long-lived, high-margin is of continue supply end manufacturing XX building the in of whose life represented September. these chain by our also at We last-time invest inventory
at the at XX days prior level. quarter We expect up from was inventory our our was the September dollars which December the distributors to Inventory of in days, sheet X quarter's in on reduce balance quarter.
cash million activities flow in from long-term flow activities was million cash supply assurance in $XX.X $XXX.X from our was from receipts September operating customers. Included Our operating the of quarter.
free the these purchase adjusted determine supply We will that of be flow refundable assurance time cash payments cash return through are as items these over free to our out have we commitments fulfilled. flow as and repurchases, shareholders will dividends adjusted share to
Our adjusted quarter. the was $XXX.X free flow in cash million September
of was consolidated cash XX, and As September million. total our position investment $XXX.X
Our total up million. our quarter, million by debt debt $XX.X September increased in was net $XX.X and the by
XX excess so, bring and quarters debt. ] billion incurred cash Microsemi this to Over closed we the continue full do paid acquisition stock down in $X.XX debt and dividends debt and billion down beyond allocate over to buyback all of of we the [ our $X last have since the to substantially
X, In Term A the million credit. line Loan retired bonds A matured and billion September quarter, XXXX, $XXX and September that with on our Term from of we Loan proceeds issued the $X in a
line We of quarter, basis billion XX credit lower a advantage also issued commercial of $X our point to during rate. the compared rate paper about September of on the paper taking commercial interest
against million credit at borrowings line it XXXX. had of XX, of Our $XX September
September could shares. convertible quarter, of retired amount and essentially we for $XX.X share amount were XXXX like synthetic any a works converted payment total ever amount bonds buyback, of cash total the the During future million. principal result reducing principal $XX.X stock into a of dilution count if also The current convertible million bonds these our that paid above
the normal convertible The our we additional reduction to for an value activity in buyback bonds executed count par diluted share addition in was the share million quarter, above the during $XX.X in outstanding. resulting that paid the we
the September of and Our was net XX.X% billion in sales. $X.XXX adjusted EBITDA quarter
Our trailing a XX-month record EBITDA adjusted was billion. at $X.XX
from September XXXX. XX, was XX, EBITDA debt X.XX net Our adjusted XXXX, down at to September at X.XX
million $XX.X quarter. September the in were expenditures Capital
million, investors certain year $XXX $XXX more capital down backdrop. to is we for which is $XXX expenditures the with challenging are the as XXXX million between fiscal from million for economic delaying given we expectation quarter, and million shared Our capital $XXX last
expense million. in our control the Depreciation $XX that constraints. continue over September to provide our with quarter of expect investments will periods was during us industry-wide We production capital increased
his I quarter comments quarter. will to September the business now to the of performance December the Ganesh for guidance our well in as turn on it as Ganesh? give over the
