In attendance with me today are: Steve Sanghi, Microchip's President and CEO; Ganesh Moorthy, Microchip's COO; and Gordon Parnell, Vice President Business Development and Investor Relations.
I will comment on our second quarter of fiscal year 2012 financial performance, and Steve and Ganesh will then give their comments on the results, discuss the current business environment and discuss our guidance. 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 Relation page of our website at www.microchip.com, which we believe you will find useful when comparing GAAP and non-GAAP results.
I will now go through some of the operating results. I will be referring to gross margin and operating expenses on a non-GAAP basis prior to the effects of share base compensation and acquisition-related expenses.Net sales in the September quarter were $340.6 million, and were down sequentially 9.1% from net sales of $374.5 million in the immediately preceding quarter, and were down 10.9% from net sales of $382.3 million in the September 2010 quarter. Looking at revenue by geography for the September quarter, Americas were down 9.4% sequentially, Europe was down 8.5% sequentially and Asia was down 9.2% sequentially. All geographies were impacted by the business conditions we experienced with Asia being the weakest as compared to our expectations. On a non-GAAP basis, gross margins were 58.2% in the September quarter, and non-GAAP operating expenses were 25.9% of sales. Operating income was 32.3% of sales, and net income was $92.6 million or $0.46 per diluted share. On a full GAAP basis, gross margins, including share-based compensation and acquisition-related intangible amortization were 57.2% in the September quarter. Total operating expenses were $97.4 million or 28.6% of sales, and includes share-based compensation of $7.9 million and acquisition-related expenses of $1.1 million. GAAP net income was $79.3 million, or $0.40 per diluted share.