Consistent with the weak macroeconomic environment, most of our factory expansion activity remains paused and we have reduced our planned capital investments through fiscal 2025. We are unable to predict the timing or impact of any such slowdown on our business.

We continue to transition products to more advanced process technologies to reduce future manufacturing costs.

We are also pursuing incentives under the CHIPS Act to increase our domestic manufacturing capacity; however, there can be no assurance that we will receive any such incentives or what the amount and timing of any incentive we receive will be.

We continue to prioritize our efforts to manage our high inventory levels, and our global production facilities continue to run at lower utilization rates.

We employ proprietary design and manufacturing processes in developing our embedded control products. We believe our processes afford us both cost-effective designs in existing and derivative products and greater functionality in new product designs.

We plan to continue to selectively invest in assembly and test equipment to increase our internal capacity capabilities and transition certain outsourced assembly and test capacity to our internal facilities.

Our operating results are impacted by global economic conditions and may fluctuate in the future due to a number of factors that could reduce our net sales and profitability.

We continue to be the target of attacks on our IT systems. Interruptions in and unauthorized access to our IT systems, security breaches or incidents impacting our systems or data that we or our service providers maintain or otherwise process, could adversely affect our business.

Our failure to comply with federal, state, or international laws and regulations regarding privacy, data protection and cybersecurity may materially adversely affect our business, results of operations and financial condition.

The semiconductor industry is intensely competitive and faces price erosion and rapid technological change. We compete with major domestic and international semiconductor companies, many of which have greater market recognition and substantially greater financial, technical, marketing, distribution and other resources than we do.

We are committed to continuing our investment in new and enhanced products, including development systems, and in our design and manufacturing process technologies. We believe these investments are significant factors in maintaining our competitive position.

Historically, average selling prices in the semiconductor industry decrease over the life of any particular product. However, the overall average selling prices of our mixed-signal microcontroller products have increased in recent periods and have remained relatively stable over time due to the proprietary nature of these products.

We plan to continue to selectively invest in assembly and test equipment to increase our internal capacity capabilities and transition certain outsourced assembly and test capacity to our internal facilities.

We continue to transition products to more advanced process technologies to reduce future manufacturing costs.

During the three months ended June 30, 2024, and the three months ended June 30, 2023, we incurred special charges and other, net of $2.6 million and $1.7 million, respectively, primarily related to restructuring of acquired and existing wafer fabrication operations to increase operational efficiency.

We are committed to investing in new and enhanced products, including development systems software, and in our design and manufacturing process technologies.

We are also developing new design and process technologies to achieve further cost reductions and performance improvements in our products.

Our engineers utilize advanced computer-aided design tools and software to perform circuit design, simulation and layout, and our in-house photomask and wafer fabrication facilities enable us to rapidly verify design techniques by processing test wafers quickly and efficiently.

During the three months ended June 30, 2024, the Company purchased approximately 0.8 million shares of its common stock for a total cost of $72.7 million, including the 1% excise tax on stock repurchases enacted by the Inflation Reduction Act.

A quarterly cash dividend of $0.452 per share was paid on June 5, 2024 in the aggregate amount of $242.6 million.

Capital expenditures in the three months ended June 30, 2024 were $72.9 million compared to $111.1 million in the three months ended June 30, 2023. Capital expenditures were primarily for the selective expansion of production capacity and the addition of research and development equipment.

We must comply with federal, state, local and foreign governmental regulations related to the use, storage, emissions, discharge and disposal of hazardous substances used in our products and manufacturing processes, or that are the result of our manufacturing operations, such as greenhouse gases.

Also, we have publicly announced environmental goals including those related to greenhouse gas emissions reduction, achieving net zero carbon emissions and renewable energy usage, which we may refine or expand further in the future.

We are working to ensure our supply chain is free from the risk of irresponsible sourcing. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, in August 2012, the SEC released investigation, and disclosure requirements regarding the use of "conflict" minerals mined from the Democratic Republic of Congo and adjoining countries.

Our operating results are impacted by global economic conditions and may fluctuate in the future due to a number of factors that could reduce our net sales and profitability.

We are highly dependent on foreign sales, suppliers, and operations, which exposes us to foreign political and economic risks.

Intense competition in the markets we serve may lead to pricing pressures, reduced sales or reduced market share.