| Microchip Consolidated Guidance | |||
| Net Sales | $1.716 to $1.782 billion | ||
| GAAP | Non-GAAP Adjustments | Non-GAAP(1) | |
| Gross Margin | 65.3% to 65.7% | $8.4 to $9.4 million | 65.8% to 66.2% |
| Operating Expenses(2) | 37.8% to 38.6% | $272.2 to $276.2 million | 22.3% to 22.7% |
| Operating Income | 26.7% to 27.9% | $280.6 to $285.6 million | 43.1% to 43.9% |
| Other Expense, net | $63.4 to $65.8 million | $9.9 to $10.3 million | $53.5 to $55.5 million |
| Income Tax Provision | $67.2 to $90.5 million(3) | $26.1 to $46.9 million | $41.1 to $43.6 million(4) |
| Net Income | $328.2 to $340.3 million | $316.6 to $342.8 million | $644.8 to $683.1 million |
| Diluted Common Shares Outstanding | Approximately 567.5 to
568.5 million shares | Approximately 567.5 to
568.5 million shares | |
| Earnings per Diluted Share | $0.58 to $0.60 | $0.56 to $0.60 | $1.14 to $1.20 |
(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 December 31, 2021. Therefore, our estimate of GAAP operating expenses excludes certain amounts that may be recognized as Special Charges and Other, net in the quarter ending December 31, 2021.
(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 2022, excluding any transition tax payments associated with the Tax Cuts and Jobs Act.
- Microchip's inventory days in the December 2021 quarter are expected to be in the range of 112 to 118 days, compared to 112 days on September 30, 2021. 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 December 31, 2021 are expected to be between $70 million and $90 million. Capital expenditures for all of fiscal 2022 are expected to be between $350 million and $400 million. We continue to add capital equipment to maintain, grow and operate our internal manufacturing capabilities to support the expected growth of our business.
