On a full GAAP basis, net sales were $352.1 million and gross margins, including share-based compensations and acquisition-related expenses, were 57.7% in the June quarter. Total operating expenses were $106.7 million or 30.3% of sales and includes share-based compensations of $8.7 million and acquisition-related expenses of $5.5 million. GAAP net income was $78.7 million or $0.39 per diluted share.
In the June quarter, the non-GAAP tax rate was 13.3% and the GAAP tax rate was 13.4%. The tax rate was impacted by the mix of geographical profits, withholding taxes associated with our licensing business and the tax effect of various non-recurring items.
We expect our forward-looking effective tax rate with the combination of Microchip and SMSC on a non-GAAP basis to be about 13% to 14%. And I remind you that this is without any benefit from the R&D tax credit, which has currently expired and has not yet been reinstated.
To summarize the after-tax impact the non-GAAP adjustments had on Microchip's earnings per share in the June quarter, share-based compensation was about $0.043. Acquisition-related items were about $0.04 and noncash interest expense was about $0.006.The dividend declared today of $0.3501 per share will be paid on September 5, 2012 to shareholders of record on August 22, 2012. The cash payment associated with this dividend will be approximately $68.2 million. Moving on to the balance sheet. Microchip's inventory at June 30, 2012, was $221.5 million or 136 days, down 1 day from the prior-quarter levels. Inventory at our distributors continue to be at historically low levels at 31 days, flat to the prior quarter. I want to remind you that our distribution revenues throughout the world is recognized on a sell-through basis. Read the rest of this transcript for free on seekingalpha.com