On February 2, it was reported that Microchip, a major MCU manufacturer, announced its financial results for the third quarter of fiscal year 2024 (fourth quarter of 2023) ended December 31, 2023 after market hours in the United States** on Thursday.
Specifically, Microchip posted revenue of 1765.7 billion US dollars, down 186%, down 217%；Gross margin was 638%, down from 68 in the same period last year1%；Non-GAAP net income was 5$92.7 billion, or diluted earnings per share of $108 US dollars, down 30 year-on-year8%, down 333%。
According to Yahoo Finance**, analysts expect Microchip's fiscal third-quarter revenue to be 17$700 million, non-GAAP diluted earnings per share of 104 USD. In contrast, Microchip's performance was broadly in line with the analysis's expectations, although the gross margin was lower than the previous forecast of 640-65.0%.
In terms of business performance, Microchip's mixed-signal MCU revenue in the third quarter of fiscal 2024 was 9$95.2 billion, down 223%, and analog IC revenue was 4$30.6 billion, down 309%。
For the fourth quarter of fiscal 2024 (Q1 2024), Microchip expects revenue to be in the range of 1225-14.$2.5 billion (median value was 1.3 billion.)$2.5 billion), non-GAAP diluted earnings per share will be in the range of 046-0.$68 (median value is 0.)$57).
Analysts expect Microchip Technology's revenue in the fourth quarter of fiscal 2024 to be 16$600 million, non-GAAP diluted earnings per share of 0$91.
Ganesh Moorthy, President and CEO of Microchip, noted Thursday that "our quarterly results were below guidance, primarily due to weaker business conditions. "Due to the weak global economic environment, which forced customers to reduce shipments and extend downtime to further reduce inventory risk, we were unable to complete our previously planned backlog of shipments. We are actively taking steps to address these short-term challenges, and our focus is on ensuring the long-term sustainability and growth of our business. ”
In response to weak market demand and inventory issues, Microchip is taking steps to limit discretionary spending and tightly manage inventory levels. One of the key measures is the planned closure of its large fab (Gresham, Oregon, USA) for two weeks in the first and second quarters of this year, and the curtailment of activity in many other of its fabs, which will lead to underutilisation.
In January this year, MCU manufacturer Microchip announced the above-mentioned production reduction and shutdown plan after issuing a revenue warning that many customers were cutting inventory and expected a 22% quarter-on-quarter decrease in revenue in the third quarter of fiscal year 2024 (ending December 31, 2023), but at that time it only said that "another shutdown in June is also being considered", and no further confirmation was made.
Moorthy added: "While we remain confident in the long-term opportunities for the business, we are cautious on near-term demand given the weak macro environment and the actions our customers are taking to reduce inventory. We believe that our average lead time of less than eight weeks allows us to respond effectively to this volatile market environment. At the same time, we will continue to invest in innovative technologies and capabilities that will enable us to better serve our customers and emerge stronger when final market conditions improve." "
Editor: Xinzhixun-Rogue Sword.