Microchip Technology Announces Record Financial Results for First Quarter of Fiscal Year 2023

RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(in millions, except per share amounts and percentages)
(unaudited)

RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT

 Three Months Ended June 30,
  2022   2021 
Gross profit, as reported$1,309.9  $1,007.6 
Share-based compensation expense 7.7   8.8 
Non-GAAP gross profit$1,317.6  $1,016.4 
Non-GAAP gross profit percentage 67.1%  64.8%

RECONCILIATION OF GAAP RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES

 Three Months Ended June 30,
  2022   2021 
Research and development expenses, as reported$269.0  $238.4 
Share-based compensation expense (20.1)  (26.6)
Acquisition-related (0.2)     (0.2 )
Non-GAAP research and development expenses $ 248.7     $ 211.6  
Non-GAAP research and development expenses as a percentage of net sales   12.7 %     13.5 %

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