Microchip Technology Incorporated stock research
FY2024 Q2
Microchip Technology (MCHP) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was essentially unchanged from the prior quarter, while gross profit decreased and cost of revenue declined slightly, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved modestly.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2024 Q2
Revenue was essentially unchanged from the prior quarter, while gross profit decreased and cost of revenue declined slightly, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved modestly.
- The gross margin weakened slightly versus the prior quarter as gross profit fell relative to revenue. Compared to a year ago, the margin strengthened, driven by a proportionally larger increase in gross profit relative to the increase in revenue.
- Compared to the immediately preceding quarter, gross margin was slightly lower; year-over-year, the margin was higher. The current quarter’s revenue was stable versus the prior quarter but higher than the year-ago period.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.8%
Gross profit
$1.5B
Revenue
$2.3B
Cost of revenue
$726.9M
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+0.3 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% |
| Sep 30, 2023 | $2.3B | $1.5B | $726.9M | 67.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.3 pts
Year-over-year change
Sep 30, 2022
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened slightly versus the prior quarter as gross profit fell relative to revenue. Compared to a year ago, the margin strengthened, driven by a proportionally larger increase in gross profit relative to the increase in revenue.
Compared to the immediately preceding quarter, gross margin was slightly lower; year-over-year, the margin was higher. The current quarter’s revenue was stable versus the prior quarter but higher than the year-ago period.
Monitor whether the relationship between revenue and cost of revenue continues to keep gross profit stable or leads to further margin changes.