Microchip Technology Announces Financial Results for Second Quarter of Fiscal Year 2019
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT
| | Three Months Ended | | Six Months Ended |
| | September 30, | | September 30, |
| | 2018 | | 2017 | | 2018 | | 2017 |
| Gross profit, as reported | $ | 689.3 | | | $ | 614.1 | | | $ | 1,331.3 | | | $ | 1,198.5 | |
| Impact of changes in distributor inventory levels | 56.1 | | | — | | | 59.5 | | | — | |
| Share-based compensation expense | 3.9 | | | 3.7 | | | 7.5 | | | 7.1 | |
| Manufacturing excursion | — | | | — | | | — | | | (0.6 | ) |
| Acquisition-related costs | — | | | — | | | 0.2 | | | — | |
| Excess capacity charges to normalize acquired inventory levels | 2.3 | | | — | | | 2.3 | | | — | |
| Acquired inventory valuation costs | 182.1 | | | — | | | 289.6 | | | — | |
| Non-GAAP gross profit | $ | 933.7 | | | $ | 617.8 | | | $ | 1,690.4 | | | $ | 1,205.0 | |
| Non-GAAP gross profit percentage | 61.7 | % | | 61.0 | % | | 61.9 | % | | 60.7 | % |
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RECONCILIATION OF GAAP RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES
| | Three Months Ended | | Six Months Ended |
| | September 30, | | September 30, |
| | 2018 | | 2017 | | 2018 | | 2017 |
| Research and development expenses, as reported | $ | 221.9 | | | $ | 133.6 | | | $ | 393.8 | | | $ | 264.0 | |
| Share-based compensation expense | (19.7 | ) | | (10.6 | ) | | (33.8 | ) | | (20.9 | ) |
| Acquisition-related costs | (0.7 | ) | | — | | | (1.0 | ) | | — | |
| Non-GAAP research and development expenses | $ | 201.5 | | | $ | 123.0 | | | $ | 359.0 | | | $ | 243.1 | |
| Non-GAAP research and development expenses as a percentage of net sales | 13.3 | % | | 12.2 | % | | 13.2 | % | | 12.3 | % |
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