Victory Capital Management Inc. — Sycamore Mid Cap Value Equity on Microchip Technology, Inc.

Microchip reported fiscal fourth-quarter revenue, margins and forward guidance above expectations. Demand was broad, with Aerospace and Defense providing a relatively insulated long-cycle growth anchor. Gross margins are recovering faster than expected as inventory reserve charges normalize, while customer relationships are improving as Microchip maintains pricing discipline. Sycamore views the results as evidence that the business is moving from inventory destocking into a cyclical recovery.