Microchip Technology
Q1 2023 Earnings Call
Aug 02, 2022, 5:00 p.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good day, everyone, and welcome to Microchip's first quarter fiscal 2023 financial results. As a reminder, today's call is being recorded. At this time, I would like to turn the call over to Mr. Eric Bjornholt, our CFO.
Please go ahead, sir.
Eric Bjornholt -- Chief Financial Officer
Thank you, and good afternoon, everyone. During the course of this conference call, we will be making projections and other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are predictions and that actual events or results may differ materially. We refer you to our press releases of today, as well as our recent filings with the SEC that identify important risk factors that may impact Microchip's business and results of operations.
In attendance with me today are Ganesh Moorthy, Microchip's president and CEO, Steve Sanghi, Microchip's executive chair, and Sajid Daudi, Microchip's head of investor relations. I will comment on our first quarter financial performance, Ganesh will then provide commentary on our results and discuss the current business environment, as well as our guidance, and Steve will provide an update on our cash return strategy. We will then be available to respond to specific investor and analyst questions. We are including information in our press release in this conference call on various GAAP and non-GAAP measures.
We have posted a full GAAP to non-GAAP reconciliation on the Investor Relations page of our website at www.microchip.com, and included reconciliation information in our press release, which we believe you will find useful when comparing our GAAP and non-GAAP results. We have also posted a summary of our outstanding debts and our leverage metrics on our website. I will now go through some of the operating results, including net sales, gross margin and operating expenses. Other than net sales, I will be referring to these results on a non-GAAP basis, which is based on expenses prior to the effects of our acquisition activities, share-based compensation and certain other adjustments as described in our press release.
Net sales in the June quarter were $1.964 billion, which was up 6.5% sequentially. We have posted a summary of our GAAP net sales by product line and geography on our website for your reference. On a non-GAAP basis, gross margins were a record at 67.1%, operating expenses were at 21.5%, and operating income was a record 45.6%. Non-GAAP net income was a record $767.2 million.