Thank you, afternoon, good everyone. Eric, and
of with the to of down were continue net X.X% came results of midpoint just as we as at expense margin major Our guidance non-GAAP our programs. Non-GAAP XX.X%, sequentially control June strong operating was guidance, the our continued inventory quarter we with our guidance margin through XX.X% sales a at correction. . gross while navigate under our midpoint consistent in
$X.XX in ahead earnings per Our consolidated diluted at non-GAAP share. per share came of guidance $X.XX
Our sequential adjusted a leverage And resulted decline quarter our June net X.XXx. revenue rose dropping. as result, EBITDA in to
XX-month as our year adjusted net EBITDA weaker quarters drops modestly expect quarters. rise year for current prior trailing stronger more We when a leverage replacing quarters with to few
be continues cash remain we capital to to generation solid, plan. and return our committed our However,
we Our free our adjusted cash shareholders in to flow increase free our will flow March June our to adjusted of cash the shareholders by year quarter calendar to XXXX. capital September quarter continue XXX% as to the path return on return of of quarter XX.X%
with we their the believe market our into My support, work diligence and focus team our worldwide applications, portfolio thanks on the strong In strong preserving edge thrive extends system to to adoption our make performance solutions. continue increased a developments AI-enabled This in processing capabilities higher us development while easy long historically difficult address embedded XX-bit of high-performance to early leading and for and suite design embedded hard embedded including environment. microprocessor we well ecosystem entry Microchip's a of products, embedded as engineers. to navigate actions to we that term. microprocessor tools for XX-bit July, announced to position
from only offer and bit with processing control customers embedded wide ecosystem, to that's across to development platform X company to and well the widest as markets reuse spectrum as their FPGAs work innovate empowering and a the is Microchip XX a common to applications. of
be exceptions stable most the which All color exhibited general artificial degrees centers, of markets Now intelligence business the the and environment. regions on which for Defense, quarter strong. weakness. and was our varying were data of end subset The and of June world continue the and to of Aerospace some
and a the in markets automotive Our Europe by dominated and of heels weak weak March are which business industrial particularly were on very America, quarter.
times believe base lead Our manufacturing, and their rates, inventory in plans short to midst and business interest This very weak as combination manage driving continue macro factors as is adjust destocking levels in their in for areas. of we of tightly reductions target well uncertain inventory outlook. broad customers high multiple business of inventory a the environment an
at February, indirect in distributors contract shoots buy other at progress, sequentially and at in our continued customers with who in from at The in distributors and uneven have early many our us sequentially months to April signs customers, customers' direct an relatively in our although our business buy and flat March months. up our green and At of we customers. cases, bookings pace, some who manufacturers saw through
like to close of the quarter the continue in compared to still overall to XX% period however, age would June quarter, time. a see Bookings, bookings Although bookings we as to over quarterly were below shorter where grew March them.
continue of previously and request orders new date orders. pull-ins many to shipment continue see to placed for expedites subside. we pushouts requests for for And cancellations and
is to about weeks near-term readily visibility high that continue be have while lead or times placing X confidence time they lead short in supply average resulting available. less, orders delay since the as Our reduced are customers
of times to customers help We the during the best the environment and improve with short business way backlog lead also a are placed uncertainty of successfully believe navigate us. quality period
this as best uncertain this semi-finished the operational we and inventory turns to preposition our as accept we goods systems to adjusted and have quarter. can We orders need environment ship finished and to adapt
run the rates down severity to factories cycle, our to the at continuing Given of lower inventory are the levels. control utilization in help around order world
internal Our paused. actions expansion remain capacity
as in to use up will we expect of for capital the well, invested inventory We likely business. as We're we our cycle. fiscal 'XX our prepared in as long-term the be capacity also 'XX and next will our growth underutilized well fiscal as low have support investments in the
capital, foundry our not And On placed partners. the which with but the assembly internal the partnership service. for yet X purchased and have hand, factories, other our outsourced deploying hand, of with in test into on and we optionality
we our nor coming the And recovery know to prepared the prior whatever customers in the cycle. we the are months, semiconductor shape we, of the well market things all arrive in do to While we believe advertise neither it exploit looks expect recovery like. for control can we
the and departments continue stack chip the a challenges office other number the of grants. On to regards with work in government to front, we through chips
been than grants the has and expected. preliminary of a terms benefit. completion Recall, the been XXXX supported January investment memorandum more of March. of taken early relatively credit we to The in has we tax complicated and appreciative journey this announced receive by we While greatly and straightforward, much diligence process are longer
goals the that on well pragmatic of the for if Given government's conditions security up attached reached. grants cannot supply be the and would to align with agreement national shoring industrial be it unfortunate semiconductor we extremely a U.S. security,
we continue also office consistent that whatever with business through challenges collaborating the chip's by to be persevere We reach with remaining while agreement must the values. our resolute
design activity. the we get note of into Before guidance, our our about I in strength
their take their resources end a customers. of impact of pipeline redeploying and shortages design-in all innovation with to of across mega is last for the innovation dealing key and strong our approach returned total trends our of to advantage solutions. towards projects. years over plus shortages, result have the mitigating by us solutions system our markets, year portfolio X-plus broad amplified customers The After prioritizing
time takes design drive this excess of gestate is But muted above-market and which activity we in engine momentum current is on the into growth. gets attention. production. impact most always long-term pipeline win focused where the inventory will have long-term we expect the growth growing to design The of of design-in and environment that
into guidance quarter. get for Now the let's our September
While number we to challenging to as in need meet our predict our a been indicators, turns during historically it's Microchip, continue environment in orders we're of green within do the normal turns guidance, times has but quarter high in operating to today. we shoots a see business for abnormal
another forecasting we the however, discussed artificial is consideration, Taking call weakness. in visibility strong all the on data especially the the effectively center have growth with. we are, factors into low after business green several signs faced subset quarters intelligence We our backlog of are very today beyond of This shoot.
expect We billion net to sales and September $X.XX be for billion. our $X.XX the quarter between
non-GAAP to margin XX.X% be of XX.X% and sales. We between gross expect our
operating non-GAAP expect expenses We and between sales. of XX% XX% to be
our share be per XX.X% expect diluted We XX.X% to $X.XX and expect we between to earnings of non-GAAP and sales, $X.XX. non-GAAP profit be operating between and
demand that the industry recognize thereafter. coveted This to the challenges which we product sharper correction multiyear was year Microchip with March for quarters like in and for continued then none And many overall quarter last decline months. a a for quarters. trough the of later and had seen. semiconductor disruptions many and has followed that and been in been It for shortages cycle substantial started several of has This supply other XXXX, semiconductor result inventory on extreme supply several finally, revenue peak basis, our our competitors. than over We chain by
impacted cycle Some markets variance different end market the as in exposure of end this times. different has reflects this at differences
to differences variance gold, us programs. due Some of nonreschedulable our is in by the implemented and noncancer competitors.
variance is the transacted or relative finally, some the of of And in the by business through directly differences either driven channel. size
generated performance indicator comparison cumulative peak better revenue cycle. is While across we relevant, believe revenue entire a is the the through of a longer-term
XXXX of the December for and XX of indexed when guidance quarter from comparable our last quarter Microchip's was quarter Assuming September the to revenue over unaffected competitors. our quarter, inclusive the very cumulative next XXXX -- December performance us or normal quarters, shows the between the
impact trucks we is, peaks mentioned were of everyone. each factors that We This company. different revenue and of course, excluding for earlier. the for the believe acquisitions The for
looking represent. However, curve when the when under XX-quarter would at the we're the looking essentially revenue, -- revenue that is what area cumulative
journey the different that quarters, ready the shape company recovery destination in suggest very that may after While predict time. be quarters. the of sharper similar for this was positioned for to a each would was This not coming growth that XX although we're Microchip at
characteristics well. generation performance focused prudent growth, the rather cash on it to our than under believe of remain curve consider the cumulative that as fundamental the revenue business is the of seems point and be area My alone, peak performance We profitability trust of intact.
that engine executing remain believe the of of we we imperatives, the serve. application strategic sustained shareholder for to confident innovation value. committed end are remain solutions and which markets results our will our We substantial deliver We
at we With can baton shareholder let to more things finally, to control focused to long-term a cash that, our uncertainty, on to talk of Steve me generation time macro Steve? about we the And shareholders. remain value. create
