Microchip Technology reports that the distribution channel has normalized, with bookings strengthening and a March-quarter revenue outlook of +6.2%. The company aims for a 61% gross margin for the March quarter and is focusing on deleveraging. Executives highlight signs of strengthening demand and a shift in financial priorities towards debt reduction. Visibility into true end demand remains limited, but momentum is improving. Microchip’s data center business is growing, with a focus on PCIe switching, flash controllers, and HDD controllers. The company is also expanding its presence in the automotive industry and navigating the volatile Chinese market. Management emphasizes reducing debt and maintaining the dividend, with buybacks unlikely in the near term.

Read more at Yahoo Finance: Microchip Technology Sees Demand Strengthen as Channel Normalizes, Shifts Focus to Debt Paydown