Microchip Technology Announces Financial Results for Fourth Quarter and Fiscal Year 2019
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT
| | Three Months Ended | | Twelve Months Ended |
| | March 31, | | March 31, |
| | 2019 | | 2018 | | 2019 | | 2018 |
| Gross profit, as reported | $ | 820.5 | | | $ | 615.1 | | | $ | 2,931.3 | | | $ | 2,420.7 | |
| Impact of changes in distributor inventory levels | — | | | — | | | 83.4 | | | — | |
| Share-based compensation expense | 4.0 | | | 3.3 | | | 14.9 | | | 13.8 | |
| Manufacturing excursion | — | | | — | | | — | | | (0.6 | ) |
| Acquisition-related costs | 0.6 | | | — | | | 0.9 | | | — | |
| Excess capacity charges to normalize acquired inventory levels | — | | | — | | | 2.3 | | | — | |
| Acquired inventory valuation costs | 1.8 | | | — | | | 365.7 | | | — | |
| Non-GAAP gross profit | $ | 826.9 | | | $ | 618.4 | | | $ | 3,398.5 | | | $ | 2,433.9 | |
| Non-GAAP gross profit percentage | 62.2 | % | | 61.7 | % | | 62.1 | % | | 61.1 | % |
RECONCILIATION OF GAAP RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES
| | Three Months Ended | | Twelve Months Ended |
| | March 31, | | March 31, |
| | 2019 | | 2018 | | 2019 | | 2018 |
| Research and development expenses, as reported | $ | 214.8 | | | $ | 133.5 | | | $ | 826.3 | | | $ | 529.3 | |
| Share-based compensation expense | (18.8 | ) | | (10.7 | ) | | (72.0 | ) | | (42.5 | ) |
| Acquisition-related costs | (0.1 | ) | | — | | | (1.5 | ) | | — | |
| Non-GAAP research and development expenses | $ | 195.9 | | | $ | 122.8 | | | $ | 752.8 | | | $ | 486.8 | |
| Non-GAAP research and development expenses as a percentage of net sales | 14.7 | % | | 12.3 | % | | 13.7 | % | | 12.2 | % |
