Microchip will host a conference call today, August 1, 2024 at 4:30 p.m. (Eastern Time) to discuss this release. This call will be simulcast over the Internet at www.microchip.com. The webcast will be available for replay until August 15, 2024.

A telephonic replay of the conference call will be available at approximately 8:00 p.m. (Eastern Time) on August 1, 2024 and will remain available until 5:00 p.m. (Eastern Time) on August 15, 2024. Interested parties may listen to the replay by dialing 201-612-7415/877-660-6853 and entering access code 13747161.

Cautionary Statement:

The statements in this release relating to continuing to navigate a challenging macro environment in combination with our customers focusing on reducing their inventory positions, that our strategic cost management actions have helped maintain financial resilience and operational efficiency, that the 'green shoots' we observed last quarter have continued but have not developed as robustly as anticipated, that the macro environment continues to be weaker than expected resulting in an extended period over which the inventory correction is playing out, that we believe that our expanded portfolio positions us well for sustainable, above-market growth across a diverse set of applications, that we have maintained our financial health through proactive cost and balance sheet management, broader challenging market conditions, that we are confident that this inventory positions us well to service customers with short lead times, that we believe that our inventory level along with our investment in capacity will allow us to cost-effectively respond when business conditions improve, that our strategy is designed to balance near-term challenges with long-term growth opportunities, green shoots developing slower than expected, that we see additional positive business signals, that uncertain market conditions add complexity to forecasting, that we anticipate September quarter net sales between $1.12 billion and $1.18 billion, that we are navigating these unusual market conditions with a balance of prudence and readiness to be well positioned to capitalize on upside opportunities, that our design-in pipeline and momentum remains strong across markets, that this design momentum, amplified by our focus on Total System Solutions and key Megatrends, is our engine for long-term growth, our second quarter fiscal 2025 guidance for net sales and GAAP and non-GAAP gross profit, operating expenses, operating income, other expense, net, income tax provision, net income, diluted common shares outstanding, earnings per diluted share, capital expenditures for the September 2024 quarter and for all of fiscal 2025, selectively adding capital equipment to maintain, grow and operate our internal manufacturing capabilities to support the expected growth of our business, our belief that non-GAAP measures are useful to investors and our assumed average stock price in the September 2024 quarter are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: any continued uncertainty, fluctuations or weakness in the U.S. and world economies (including China) due to changes in interest rates, high inflation or