August 3, 2012 - Microchip, a provider of microcontrollers (MCU) and analog ICs, announced after the market bell on August 2, 2012 its financial results for the first quarter of fiscal year 2023 (ended June 30, 2022): revenue increased 25.1% year-over-year (6.5% quarter-over-quarter) to $1.964 billion, a record high, and non-GAAP earnings per share increased 38.4% to a record $1.37. Non-GAAP diluted earnings per share increased 38.4% to a record $1.37, and non-GAAP gross margin reached an all-time high of 67.1%. This exceeded outside expectations.

According to Yahoo Finance, analysts expect Microchip's revenue and non-GAAP diluted earnings per share to be $1.95 billion and $1.34 respectively in 1Q.

Microchip expects Q2 revenue to be between $2.023-2.101 billion (median $2.062 billion) and non-GAAP diluted earnings per share to be between $1.42-1.46 (median $1.44, up 34.6% YoY).

Analysts expect Microchip to report revenue of $1.96 billion and non-GAAP diluted EPS of $1.34 for the second quarter of fiscal 2023 (3Q 2022), with gross margin estimates ranging from 67.3-67.7 percent.

Microchip said that 54% of its revenue in the first quarter came from MCUs, while analog ICs accounted for 30%. Microchip noted that days of inventory at the end of the first quarter was 127 days, up from 125 days at the end of the fourth quarter, and days of inventory at the end of the second quarter (3Q 2022) is estimated to be between 127-132 days.

According to Ganesh Moorthy, CEO of Microchip, Microchip has delivered record revenue for the seventh consecutive quarter, and demand continues to outpace supply.

Moorthy added that Microchip's strong internal metrics may be affected by general economic uncertainties. However, even if the general economic environment has a more significant impact on Microchip, Microchip believes there are still many elements of the business that are within its control and that it can achieve a soft landing through continued strong free cash flow generation and profitability.

Microchip said it does not see any signs of a turnaround in performance, and that the supply-constrained performance is expected to continue well into 2023.