Microchip Technology Incorporated stock research
FY2024 Q4
Microchip Technology (MCHP) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit were lower than both the prior quarter and the same quarter a year ago, while cost of revenue also declined. Gross margin weakened compared to both periods.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q4
Revenue and gross profit were lower than both the prior quarter and the same quarter a year ago, while cost of revenue also declined. Gross margin weakened compared to both periods.
- The decline in gross margin is primarily associated with the proportionally larger decrease in revenue relative to the reduction in cost of revenue.
- Sequentially, revenue, gross profit, and cost of revenue were lower, and gross margin decreased. Year-over-year, all metrics were also lower, with gross margin weakening further.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.6%
Gross profit
$789.9M
Revenue
$1.3B
Cost of revenue
$535.9M
Quarter-over-quarter change
-3.9 pts
Year-over-year change
-8.5 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $2.3B | $1.6B | $730.2M | 68.1% |
| Sep 30, 2023 | $2.3B | $1.5B | $726.9M | 67.8% |
| Dec 31, 2023 | $1.8B | $1.1B | $645.7M | 63.4% |
| Mar 31, 2024 | $1.3B | $789.9M | $535.9M | 59.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-3.9 pts
Year-over-year change
Mar 31, 2023
-8.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin is primarily associated with the proportionally larger decrease in revenue relative to the reduction in cost of revenue.
Sequentially, revenue, gross profit, and cost of revenue were lower, and gross margin decreased. Year-over-year, all metrics were also lower, with gross margin weakening further.
Monitor the relationship between revenue and cost of revenue to assess whether the gap narrows or widens in future quarters.