The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
| Microchip Consolidated Guidance | |||
| Net Sales | $2.023 to $2.101 billion | ||
| GAAP | Non-GAAP Adjustments | Non-GAAP(1) | |
| Gross Margin | 66.9% to 67.3% | $7.5 to $8.5 million | 67.3% to 67.7% |
| Operating Expenses(2) | 31.6% to 32.2% | $213.0 to $217.0 million | 21.3% to 21.7% |
| Operating Income | 34.7% to 35.7% | $220.5 to $225.5 million | 45.6% to 46.4% |
| Other Expense, net | $53.4 to $55.8 million | ($0.1) to $0.3 million | $53.5 to $55.5 million |
| Income Tax Provision | $119.9 to $163.0 million(3) | $46.1 to $66.5 million | $73.8 to $96.5 million(4) |
| Net Income | $528.4 to $530.6 million | $266.5 to $292.3 million | $794.9 to $822.9 million |
| Diluted Common Shares Outstanding | Approximately 560.1 to 560.7 million shares | Approximately 560.1 to 560.7 million shares | |
| Earnings per Diluted Share | $0.94 to $0.95 | $0.48 to $0.51 | $1.42 to $1.46 |
(1) See the "Use of Non-GAAP Financial Measures" section of this release for information regarding our non-GAAP guidance.
(2) We are not able to estimate the amount of certain Special Charges and Other, net that may be incurred during the quarter ending September 30, 2022. Therefore, our estimate of GAAP operating expenses excludes certain amounts that may be recognized as Special Charges and Other, net in the quarter ending September 30, 2022.
(3) The forecast for GAAP tax expense excludes any unexpected tax events that may occur during the quarter, as these amounts cannot be forecasted.
(4) Represents the expected cash tax rate for fiscal 2023, excluding any transition tax payments associated with the Tax Cuts and Jobs Act.
- Microchip's inventory days in the September 2022 quarter are expected to be in the range of 127 to 132 days, compared to 127 days on June 30, 2022. Our actual inventory level will depend on the inventory that our distributors decide to hold to support their customers, overall demand for our products, and our production levels.
- Capital expenditures for the quarter ending September 30, 2022 are expected to be between $130 million and $150 million. Capital expenditures for all of fiscal 2023 are expected to be between $500 million and $550 million. We continue to add capital equipment to maintain, grow and operate our internal manufacturing capabilities to support the expected growth of our business.
