Microchip 2022 Investor Presentation, it's all unicorns and rainbows. Ahh do we all feel the massive profits and love?
Managing A Soft Landing
• We recognize that macro conditions are weakening, although we do not see any weakness in our business
• We expect to be supply constrained throughout 2022 and into 2023
• If or when macro weakness catches up to our business, we believe we can achieve a soft landing because:
• Strong PSP (≥ 12 months NCNR) backlog that is >>50% of our total backlog
• Significant cushion from near term unsupported backlog that is greater than 100% of supported backlog
• Need to replenish distribution inventory which is at a historic low of 17 days
• Need to replenish internal inventory and build more die bank and finished goods
• Above average secular growth trends provided by TSS and Megatrends strategy
• Much lower capital needs which will help drive free cash flow
• High variable compensation which will buffer operating expenses
What are these executives smoking? $6.8B in sales, up 25.7% yoy - yet 100+week leadtimes for a venerable Mega328! This is sadly hilarious
From
News Releases,
Investor Presentation BOA GlobalTech Conference June 2022.pdf