Microchip Technology Incorporated stock research
FY2025 Q1
Microchip Technology (MCHP) Gross Margin — Quarter Ended Jun 30, 2024
Revenue decreased compared to both the prior quarter and the same quarter last year, leading to lower gross profit. Gross margin weakened slightly sequentially and more substantially year-over-year as cost of revenue did not decline as much as revenue.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2025 Q1
Revenue decreased compared to both the prior quarter and the same quarter last year, leading to lower gross profit. Gross margin weakened slightly sequentially and more substantially year-over-year as cost of revenue did not decline as much as revenue.
- The primary observable driver of the gross margin change is the slower decline in cost of revenue relative to the decline in revenue, which compressed the margin.
- Compared to the prior quarter, revenue and gross profit were lower while gross margin was slightly lower. Compared to the same quarter last year, all metrics were significantly lower, with gross margin notably weaker.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.4%
Gross profit
$736.9M
Revenue
$1.2B
Cost of revenue
$504.4M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-8.7 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $1.2B | $736.9M | $504.4M | 59.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-0.2 pts
Year-over-year change
Jun 30, 2023
-8.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin change is the slower decline in cost of revenue relative to the decline in revenue, which compressed the margin.
Compared to the prior quarter, revenue and gross profit were lower while gross margin was slightly lower. Compared to the same quarter last year, all metrics were significantly lower, with gross margin notably weaker.
Monitor the company's inventory levels and production utilization rates as highlighted in the filing context.