The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. We are not able to predict whether inventory at our distributors will increase or decrease during the quarter and are therefore providing a range of GAAP net sales guidance. In recent years, we have seen net inventory at our distributors increase or decrease by a significant amount in a single quarter.
| Microchip Consolidated Guidance | |||
| Net Sales | $1.519 to $1.577 billion | ||
| GAAP | Non-GAAP Adjustments | Non-GAAP(1) | |
| Gross Margin | 63.6% to 63.9% | $8.3 to $9.3 million | 64.1% to 64.5% |
| Operating Expenses(2) | 40.8% to 41.7% | $276.5 to $278.5 million | 23.1% to 23.5% |
| Operating Income | 21.8% to 23.2% | $285.8 to $287.8 million | 40.6% to 41.4% |
| Other Expense, net | $72.9 to $74.9 million | $10.9 million | $62 to $64 million |
| Income Tax Provision | $47.9 to $65.3 million(3) | $14.6 to $30.0 million | $33.3 to $35.3 million(4) |
| Net Income | $210.9 to $225.0 million | $310.3 to $328.6 million | $521.2 to $553.6 million |
| Diluted Common Shares Outstanding | Approximately 282.7 to 283.3 million shares | Approximately 282.7 to 283.3 million shares | |
| Earnings per Diluted Share | $0.75 to $0.79 | $1.10 to $1.16 | $1.85 to $1.95 |
(1) See the "Use of Non-GAAP Financial Measures" section of this release for information regarding our non-GAAP guidance.
(2) We are not able to estimate the amount of certain Special Charges and Other, net that may be incurred during the quarter ending June 30, 2021. Therefore, our estimate of GAAP operating expenses excludes certain amounts that may be recognized as Special Charges and Other, net in the quarter ending June 30, 2021.
