Microchip Technology Incorporated stock research
FY2024 Q1
Microchip Technology (MCHP) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly sequentially and more notably year-over-year, reflecting revenue growth that outpaced the increase in cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2024 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly sequentially and more notably year-over-year, reflecting revenue growth that outpaced the increase in cost of revenue.
- The primary observable driver of gross margin improvement was revenue growth exceeding the rise in cost of revenue, resulting in a higher gross profit margin.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Versus the same quarter one year earlier, all three metrics were also higher, with gross margin showing a more pronounced improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.1%
Gross profit
$1.6B
Revenue
$2.3B
Cost of revenue
$730.2M
Quarter-over-quarter change
+0.0 pts
Year-over-year change
+1.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $2.2B | $1.5B | $713.4M | 68.0% |
| Jun 30, 2023 | $2.3B | $1.6B | $730.2M | 68.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.0 pts
Year-over-year change
Jun 30, 2022
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of gross margin improvement was revenue growth exceeding the rise in cost of revenue, resulting in a higher gross profit margin.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Versus the same quarter one year earlier, all three metrics were also higher, with gross margin showing a more pronounced improvement.
Monitor customer backlog pushouts and cancellation requests, which the filing notes increased in the current quarter and are expected to continue.