Semtech Announces First Quarter of Fiscal Year 2025 Results
Semtech (SMTC) reported its first quarter fiscal year 2025 results, ending April 28, 2024. The company achieved net sales of $206.1 million, surpassing the high-end of its guidance range. GAAP gross margin was 48.3%, and non-GAAP gross margin was 49.8%, both above the midpoint of guidance.
GAAP operating expenses were $96.4 million, a 16% decrease YoY, while non-GAAP operating expenses were $77.4 million, down 17% YoY. The company recorded a GAAP net loss of $23.2 million but reported a non-GAAP net income of $4.1 million.
GAAP diluted loss per share was $0.36, while non-GAAP diluted EPS was $0.06, exceeding the high-end of guidance. Adjusted EBITDA was $33.1 million, also surpassing the high-end of guidance. For Q2 FY 2025, Semtech forecasts net sales of $212 million, non-GAAP gross margin of 50%, operating expenses of $77.5 million, and diluted EPS of $0.09.
- Net sales of $206.1 million exceeded high-end guidance.
- GAAP gross margin of 48.3% and non-GAAP gross margin of 49.8% were above the midpoint of guidance.
- GAAP operating expenses fell 16% YoY to $96.4 million.
- Non-GAAP operating expenses decreased 17% YoY to $77.4 million.
- Non-GAAP net income of $4.1 million was reported.
- Non-GAAP diluted EPS of $0.06 exceeded high-end guidance.
- Adjusted EBITDA of $33.1 million surpassed high-end guidance.
- GAAP net loss of $23.2 million was reported.
- GAAP diluted loss per share of $0.36.
- Interest expense increased to $22.7 million from $19.4 million YoY.
Insights
Semtech’s first-quarter fiscal year 2025 results demonstrate a mixed performance with noteworthy improvements in several key areas. The net sales of
The GAAP gross margin of
Notably, operating expenses have significantly reduced, down
Despite these positives, the GAAP net loss of
For short-term and long-term stakeholders, this financial performance reflects efficient management and potential recovery, with a cautious optimism for continued cost control and revenue growth. However, the ongoing net loss on a GAAP basis suggests the need for vigilance regarding future profitability.
Semtech’s performance in the semiconductor and IoT systems market shows resilience and strategic positioning. The decrease in channel inventories is a critical metric, indicating improved demand forecasting and supply chain efficiency, which are vital for technology companies to minimize holding costs and avoid stockouts.
The management's commentary on the hardware business reaching 'bedrock' suggests an anticipated stabilization and possible rebound. This outlook is important for investors as it hints at a recovery phase following a period of market adjustments. Such stability can lead to a renewed confidence among customers and partners.
Moreover, the focus on IoT systems aligns with industry trends where IoT adoption is accelerating. Investors should consider the growth potential in these markets and how effectively Semtech can capitalize on this trend. The company's strategic position in IoT and cloud connectivity services provides a competitive edge in a rapidly evolving sector.
For tech-savvy investors, Semtech’s results offer a glimpse into a company that is navigating through industry challenges with an eye on long-term technological advancements and market developments.
-
Net sales of
$206.1 million -
GAAP gross margin of
48.3% and Non-GAAP gross margin of49.8% , above the midpoint of guidance -
GAAP operating expenses of
$96.4 million 16% year-over-year, and Non-GAAP operating expenses of$77.4 million 17% year-over-year and below the midpoint of guidance -
GAAP net loss attributable to common stockholders of
$23.2 million $4.1 million -
GAAP diluted loss per share of
$0.36 $0.06 -
Adjusted EBITDA of
$33.1 million
"I am pleased with Semtech’s solid first quarter financial performance, with net sales above the high-end of our guidance range, along with meaningful declines in channel inventories across each of our end markets," said Paul H. Pickle, Semtech's president and chief executive officer. "Our semiconductor business continues to grow, and we believe our hardware business has reached bedrock, with expectations for a recovery profile in the second half of the year."
"We continue to closely monitor costs, with non-GAAP operating expenses down
First Quarter of Fiscal Year 2025 Results
|
GAAP Financial Results |
|
Non-GAAP Financial Results |
||||||||||||||||||||
(in millions, except per share data) |
Q125 |
|
Q424 |
|
Q124 |
|
Q125 |
|
Q424 |
|
Q124 |
||||||||||||
Net sales |
$ |
206.1 |
|
|
$ |
192.9 |
|
|
$ |
236.5 |
|
|
$ |
206.1 |
|
|
$ |
192.9 |
|
|
$ |
236.5 |
|
Gross margin |
|
48.3 |
% |
|
|
(0.2 |
)% |
|
|
43.5 |
% |
|
|
49.8 |
% |
|
|
48.9 |
% |
|
|
48.5 |
% |
Operating expenses, net |
$ |
96.4 |
|
|
$ |
619.6 |
|
|
$ |
114.8 |
|
|
$ |
77.4 |
|
|
$ |
76.5 |
|
|
$ |
92.7 |
|
Operating income (loss) |
$ |
3.1 |
|
|
$ |
(620.0 |
) |
|
$ |
(11.9 |
) |
|
$ |
25.2 |
|
|
$ |
17.8 |
|
|
$ |
22.0 |
|
Operating margin |
|
1.5 |
% |
|
|
(321.3 |
)% |
|
|
(5.0 |
)% |
|
|
12.2 |
% |
|
|
9.2 |
% |
|
|
9.3 |
% |
Interest expense, net |
$ |
22.7 |
|
|
$ |
22.1 |
|
|
$ |
19.4 |
|
|
$ |
20.5 |
|
|
$ |
19.9 |
|
|
$ |
18.4 |
|
Net (loss) income attributable to common stockholders |
$ |
(23.2 |
) |
|
$ |
(642.4 |
) |
|
$ |
(29.4 |
) |
|
$ |
4.1 |
|
|
$ |
(3.7 |
) |
|
$ |
2.8 |
|
Diluted (loss) earnings per share |
$ |
(0.36 |
) |
|
$ |
(9.98 |
) |
|
$ |
(0.46 |
) |
|
$ |
0.06 |
|
|
$ |
(0.06 |
) |
|
$ |
0.04 |
|
Adjusted EBITDA |
|
|
|
|
|
|
$ |
33.1 |
|
|
$ |
24.0 |
|
|
$ |
30.8 |
|
||||||
Adjusted EBITDA margin |
|
|
|
|
|
|
|
16.1 |
% |
|
|
12.5 |
% |
|
|
13.0 |
% |
||||||
See "Non-GAAP Financial Measures" below for additional information about our non-GAAP financial results.
Second Quarter of Fiscal Year 2025 Outlook
(in millions, except per share data) |
|
||||||
Net sales |
$ |
212.0 |
|
|
+/- |
|
|
Non-GAAP Financial Measures |
|
|
|
|
|
||
Gross margin |
|
50.0 |
% |
|
+/- |
|
50 bps |
Operating expenses, net |
$ |
77.5 |
|
|
+/- |
|
|
Operating income |
$ |
28.5 |
|
|
+/- |
|
|
Operating margin |
|
13.4 |
% |
|
+/- |
|
90 bps |
Interest expense, net |
$ |
20.5 |
|
|
|
|
|
Normalized tax rate |
|
15 |
% |
|
|
|
|
Diluted earnings per share |
$ |
0.09 |
|
|
+/- |
|
|
Adjusted EBITDA |
$ |
36.3 |
|
|
+/- |
|
|
|
|
|
|
|
|
||
Diluted share count |
|
72.4 |
|
|
|
|
|
See "Non-GAAP Financial Measures" below for additional information about our non-GAAP financial results.
The Company is unable to include a reconciliation of forward-looking non-GAAP results to the corresponding GAAP measures as this is not available without unreasonable efforts due to the high variability and low visibility with respect to the impact of transaction, integration and restructuring expenses, share-based awards, amortization of acquisition-related intangible assets and other items that are excluded from these non-GAAP measures. The Company expects the variability of the above charges to have a potentially significant impact on its GAAP financial results.
Webcast and Conference Call
Semtech will be hosting a conference call today to discuss its first fiscal quarter 2025 results at 2:00 p.m. Pacific time. The dial-in number for the call is (877) 407-0312. Please use conference ID 13746448. An audio webcast and supplemental earnings materials for the quarter will be available on the Investor Relations section of Semtech's website at investors.semtech.com under "News & Events." A replay of the call will be available through July 3, 2024 at the same website or by calling (877) 660-6853 and entering conference ID 13746448.
Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements prepared in accordance with GAAP, this release includes a presentation of select non-GAAP financial measures. The Company's non-GAAP measures of gross margin, SG&A expense, product development and engineering expense, operating expenses, net, operating income or loss, operating margin, interest expense, net, diluted (loss) earnings per share, normalized tax rate, adjusted EBITDA and adjusted EBITDA margin exclude the following items, if any and as applicable, as set forth in the reconciliations in the tables below under "Supplemental Information: Reconciliation of GAAP to Non-GAAP Results":
- Share-based compensation
- Intangible amortization
- Transaction and integration related costs or recoveries (including costs associated with the acquisition and integration of Sierra Wireless, Inc.)
- Restructuring and other reserves, including cumulative other reserves associated with historical activity including environmental, pension, deferred compensation and right-of-use asset impairments
- Litigation costs or dispute settlement charges or recoveries
- Gain on sale of business
- Equity method income or loss
- Investment gains, losses, reserves and impairments, including interest income from debt investments
- Write-off and amortization of deferred financing costs
- Debt commitment fee
- Goodwill and intangible impairment
- Amortization of inventory step-up
Effective as of the third quarter of fiscal year 2024, the Company's non-GAAP measures have been adjusted to exclude amortization of deferred financing costs, which had the impact of decreasing non-GAAP interest expense, net and increasing non-GAAP net income or loss attributable to common stockholders and non-GAAP earnings or loss per diluted share. This adjustment was applied retrospectively and all prior period amounts have been revised to conform to the current presentation.
To provide additional insight into the Company's second quarter outlook, this release also includes a presentation of forward-looking non-GAAP financial measures. In this release, the Company also presents adjusted EBITDA, adjusted EBITDA margin and free cash flow. Adjusted EBITDA is defined as net (loss) income plus interest expense, interest income, provision (benefit) for income taxes, depreciation and amortization, and share-based compensation, and adjusted to exclude certain expenses, gains and losses that the Company believes are not indicative of its core results over time. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of net sales. The Company considers free cash flow, which may be positive or negative, a non-GAAP financial measure defined as cash flows provided by (used in) operating activities less net capital expenditures. Management believes that the presentation of these non-GAAP measures provides useful information to investors regarding the Company's financial condition and results of operations. These non-GAAP financial measures are adjusted to exclude the items identified above because such items are either operating expenses that would not otherwise have been incurred by the Company in the normal course of the Company's business operations, or are not reflective of the Company's core results over time. These excluded items may include recurring as well as non-recurring items, and no inference should be made that all of these adjustments, charges, costs or expenses are unusual, infrequent or non-recurring. For example: certain restructuring and integration-related expenses (which consist of employee termination costs, facility closure or lease termination costs, and contract termination costs) may be considered recurring given the Company's ongoing efforts to be more cost effective and efficient; certain acquisition and disposition-related adjustments or expenses may be deemed recurring given the Company's regular evaluation of potential transactions and investments; and certain litigation expenses or dispute settlement charges or gains (which may include estimated losses for which the Company may have established a reserve, as well as any actual settlements, judgments, or other resolutions against, or in favor of, the Company related to litigation, arbitration, disputes or similar matters, and insurance recoveries received by the Company related to such matters) may be viewed as recurring given that the Company may from time to time be involved in, and may resolve, litigation, arbitration, disputes, and similar matters.
Notwithstanding that certain adjustments, charges, costs or expenses may be considered recurring, in order to provide meaningful comparisons, the Company believes that it is appropriate to exclude such items because they are not reflective of the Company's core results and tend to vary based on timing, frequency and magnitude.
These non-GAAP financial measures are provided to enhance the user's overall understanding of the Company's comparable financial performance between periods. In addition, the Company's management generally excludes the items noted above when managing and evaluating the performance of the business. The financial statements provided with this release include reconciliations of these non-GAAP financial measures to their most comparable GAAP measures for the first and fourth quarters of fiscal year 2024 and the first quarter of fiscal year 2025.
The Company adopted a full-year, normalized tax rate for the computation of the non-GAAP income tax provision in order to provide better comparability across the interim reporting periods by reducing the quarterly variability in non-GAAP tax rates that can occur throughout the year. In estimating the full-year non-GAAP normalized tax rate, the Company utilized a full-year financial projection that considers multiple factors such as changes to the Company's current operating structure, existing positions in various tax jurisdictions, the effect of key tax law changes, and other significant tax matters to the extent they are applicable to the full fiscal year financial projection. In addition to the adjustments described above, this normalized tax rate excludes the impact of share-based awards and the amortization of acquisition-related intangible assets. For fiscal year 2025, the Company's projected non-GAAP normalized tax rate is
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on the Company's current expectations, estimates and projections about its operations, industry, financial condition, performance, results of operations, and liquidity. Forward-looking statements are statements other than historical information or statements of current condition and relate to matters such as future financial performance including the second quarter of fiscal year 2025 outlook; future operational performance; the anticipated impact of specific items on future earnings; the Company's expectations regarding near term growth trends; and the Company's plans, objectives and expectations. Statements containing words such as "may," "believes," "anticipates," "expects," "intends," "plans," "projects," "estimates," "should," "will," "designed to," "projections," or "business outlook," or other similar expressions constitute forward-looking statements.
Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and events to differ materially from those projected. Potential factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the Company's ability to comply with, or pursue business strategies due to the covenants under the agreements governing its indebtedness; the Company's ability to remediate material weakness in its internal control over financial reporting, discovery of additional weaknesses, and its inability to achieve and maintain effective disclosure controls and procedures and internal control over financial reporting; the Company's ability to forecast and achieve anticipated net sales and earnings estimates in light of periodic economic uncertainty; the inherent risks, costs and uncertainties associated with integrating Sierra Wireless, Inc. successfully and risks of not achieving all or any of the anticipated benefits, or the risk that the anticipated benefits may not be fully realized or take longer to realize than expected; the uncertainty surrounding the impact and duration of supply chain constraints and any associated disruptions; export restrictions and laws affecting the Company's trade and investments, and tariffs or the occurrence of trade wars; worldwide economic and political disruptions, including as a result of inflation and current geopolitical conflicts; tightening credit conditions related to
Amounts reported in this press release are preliminary and subject to the finalization of the filing of our unaudited financial results on Form 10-Q for the three months ended April 28, 2024.
About Semtech
Semtech Corporation (Nasdaq: SMTC) is a high-performance semiconductor, IoT systems and cloud connectivity service provider dedicated to delivering high-quality technology solutions that enable a smarter, more connected and sustainable planet. Our global teams are committed to empowering solution architects and application developers to develop breakthrough products for the infrastructure, industrial and consumer markets. To learn more about Semtech technology, visit us at Semtech.com or follow us on LinkedIn or X.
Semtech and the Semtech logo are registered trademarks or service marks of Semtech Corporation or its subsidiaries.
SMTC-F
SEMTECH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
April 28, 2024 |
|
January 28, 2024 |
|
April 30, 2023 |
||||||
|
Q125 |
|
Q424 |
|
Q124 |
||||||
Net sales |
$ |
206,105 |
|
|
$ |
192,948 |
|
|
$ |
236,539 |
|
Cost of sales |
|
104,232 |
|
|
|
99,266 |
|
|
|
122,738 |
|
Amortization of acquired technology |
|
2,281 |
|
|
|
2,280 |
|
|
|
10,855 |
|
Acquired technology impairments |
|
— |
|
|
|
91,792 |
|
|
|
— |
|
Total cost of sales |
|
106,513 |
|
|
|
193,338 |
|
|
|
133,593 |
|
Gross profit |
|
99,592 |
|
|
|
(390 |
) |
|
|
102,946 |
|
Operating expenses, net: |
|
|
|
|
|
||||||
Selling, general and administrative |
|
52,269 |
|
|
|
55,198 |
|
|
|
57,780 |
|
Product development and engineering |
|
41,604 |
|
|
|
41,505 |
|
|
|
50,601 |
|
Intangible amortization |
|
307 |
|
|
|
307 |
|
|
|
4,882 |
|
Restructuring |
|
2,269 |
|
|
|
9,167 |
|
|
|
1,563 |
|
Intangible impairments |
|
— |
|
|
|
39,593 |
|
|
|
— |
|
Goodwill impairment |
|
— |
|
|
|
473,800 |
|
|
|
— |
|
Total operating expenses, net |
|
96,449 |
|
|
|
619,570 |
|
|
|
114,826 |
|
Operating income (loss) |
|
3,143 |
|
|
|
(619,960 |
) |
|
|
(11,880 |
) |
Interest expense |
|
(23,229 |
) |
|
|
(22,827 |
) |
|
|
(20,510 |
) |
Interest income |
|
542 |
|
|
|
734 |
|
|
|
1,069 |
|
Non-operating income (expense), net |
|
400 |
|
|
|
(2,045 |
) |
|
|
(473 |
) |
Investment impairments and credit loss reserves, net |
|
(1,109 |
) |
|
|
(1,679 |
) |
|
|
(33 |
) |
Loss before taxes and equity method income (loss) |
|
(20,253 |
) |
|
|
(645,777 |
) |
|
|
(31,827 |
) |
Provision (benefit) for income taxes |
|
2,956 |
|
|
|
(3,345 |
) |
|
|
(2,417 |
) |
Net loss before equity method income (loss) |
|
(23,209 |
) |
|
|
(642,432 |
) |
|
|
(29,410 |
) |
Equity method income (loss) |
|
50 |
|
|
|
75 |
|
|
|
(7 |
) |
Net loss |
|
(23,159 |
) |
|
|
(642,357 |
) |
|
|
(29,417 |
) |
Net income (loss) attributable to noncontrolling interest |
|
— |
|
|
|
6 |
|
|
|
(2 |
) |
Net loss attributable to common stockholders |
$ |
(23,159 |
) |
|
$ |
(642,363 |
) |
|
$ |
(29,415 |
) |
|
|
|
|
|
|
||||||
Loss per share: |
|
|
|
|
|
||||||
Basic |
$ |
(0.36 |
) |
|
$ |
(9.98 |
) |
|
$ |
(0.46 |
) |
Diluted |
$ |
(0.36 |
) |
|
$ |
(9.98 |
) |
|
$ |
(0.46 |
) |
|
|
|
|
|
|
||||||
Weighted average number of shares used in computing loss per share: |
|
|
|
|
|
||||||
Basic |
|
64,509 |
|
|
|
64,363 |
|
|
|
63,924 |
|
Diluted |
|
64,509 |
|
|
|
64,363 |
|
|
|
63,924 |
|
SEMTECH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
|||||||
|
April 28, 2024 |
|
January 28, 2024 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
126,777 |
|
|
$ |
128,585 |
|
Accounts receivable, net |
|
153,921 |
|
|
|
134,322 |
|
Inventories |
|
148,541 |
|
|
|
144,992 |
|
Prepaid taxes |
|
10,405 |
|
|
|
11,969 |
|
Other current assets |
|
99,628 |
|
|
|
114,329 |
|
Total current assets |
|
539,272 |
|
|
|
534,197 |
|
Non-current assets: |
|
|
|
||||
Property, plant and equipment, net |
|
146,944 |
|
|
|
153,618 |
|
Deferred tax assets |
|
15,271 |
|
|
|
18,014 |
|
Goodwill |
|
540,923 |
|
|
|
541,227 |
|
Other intangible assets, net |
|
35,086 |
|
|
|
35,566 |
|
Other assets |
|
99,013 |
|
|
|
91,113 |
|
Total assets |
$ |
1,376,509 |
|
|
$ |
1,373,735 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY (DEFICIT) |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
64,674 |
|
|
$ |
45,051 |
|
Accrued liabilities |
|
160,217 |
|
|
|
172,105 |
|
Total current liabilities |
|
224,891 |
|
|
|
217,156 |
|
Non-current liabilities: |
|
|
|
||||
Deferred tax liabilities |
|
— |
|
|
|
829 |
|
Long-term debt |
|
1,373,422 |
|
|
|
1,371,039 |
|
Other long-term liabilities |
|
91,294 |
|
|
|
91,961 |
|
Stockholders’ deficit |
|
(313,098 |
) |
|
|
(307,434 |
) |
Noncontrolling interest |
|
— |
|
|
|
184 |
|
Total liabilities & equity (deficit) |
$ |
1,376,509 |
|
|
$ |
1,373,735 |
|
SEMTECH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND SUPPLEMENTAL INFORMATION (in thousands) (unaudited) |
|||||||||||
|
|
|
Three Months Ended |
||||||||
|
|
|
April 28, 2024 |
|
April 30, 2023 |
||||||
Net loss |
|
|
$ |
(23,159 |
) |
|
$ |
(29,417 |
) |
||
|
|
|
|
|
|
||||||
Net cash used in operating activities |
|
|
|
(89 |
) |
|
|
(89,987 |
) |
||
Net cash provided by (used in) investing activities |
|
|
|
1,791 |
|
|
|
(14,407 |
) |
||
Net cash (used in) provided by financing activities |
|
|
|
(3,198 |
) |
|
|
33,728 |
|
||
Effect of foreign exchange rate changes on cash and cash equivalents |
|
|
|
(312 |
) |
|
|
(646 |
) |
||
Net decrease in cash and cash equivalents |
|
|
|
(1,808 |
) |
|
|
(71,312 |
) |
||
Cash and cash equivalents at beginning of period |
|
|
|
128,585 |
|
|
|
235,510 |
|
||
Cash and cash equivalents at end of period |
|
|
$ |
126,777 |
|
|
$ |
164,198 |
|
||
|
|
|
|
|
|
||||||
|
Three Months Ended |
||||||||||
|
April 28, 2024 |
|
January 28, 2024 |
|
April 30, 2023 |
||||||
|
Q125 |
|
Q424 |
|
Q124 |
||||||
Free cash flow: |
|
|
|
|
|
||||||
Cash flow from operations |
$ |
(89 |
) |
|
$ |
13,919 |
|
|
$ |
(89,987 |
) |
Net capital expenditures |
|
(1,334 |
) |
|
|
(1,712 |
) |
|
|
(13,977 |
) |
Free cash flow |
$ |
(1,423 |
) |
|
$ |
12,207 |
|
|
$ |
(103,964 |
) |
|
Three Months Ended |
||||||||||
|
April 28, 2024 |
January 28, 2024 |
April 30, 2023 |
||||||||
|
Q125 |
|
Q424 |
|
Q124 |
||||||
Net sales by reportable segment (1): |
|
|
|
|
|
||||||
Signal Integrity |
$ |
58,299 |
|
|
$ |
42,831 |
|
|
$ |
40,891 |
|
Analog Mixed Signal and Wireless |
|
75,344 |
|
|
|
60,423 |
|
|
|
59,619 |
|
IoT Systems and Connectivity |
|
72,462 |
|
|
|
89,694 |
|
|
|
136,029 |
|
Total net sales by reportable segment |
$ |
206,105 |
|
|
$ |
192,948 |
|
|
$ |
236,539 |
|
(1) In the fourth quarter of fiscal year 2024, as a result of organizational restructuring, the wireless business, which was previously included in the IoT Systems operating segment, and the software defined video over ethernet business, which was previously included in the Signal Integrity operating segment, were moved into the Analog Mixed Signal and Wireless operating segment, formerly the Advanced Protection and Sensing operating segment, which also includes the proximity sensing, power and protection businesses. In the first quarter of fiscal year 2025, as a result of organizational restructuring, the Company combined the IoT Systems operating segment and the IoT Connected Services operating segment into the newly formed IoT Systems and Connectivity operating segment. As a result of the reorganization, the Company has three reportable segments. All prior year information in the table above has been revised retrospectively to reflect the changes to the Company's reportable segments. |
|||||||||||
|
Three Months Ended |
||||||||||
|
April 28, 2024 |
January 28, 2024 |
April 30, 2023 |
||||||||
|
Q125 |
Q424 |
Q124 |
||||||||
Net sales by end market: |
|
|
|
||||||||
Infrastructure |
$ |
55,977 |
$ |
39,387 |
$ |
39,000 |
|||||
High-End Consumer |
|
34,539 |
|
|
32,059 |
|
|
21,594 |
|
||
Industrial |
|
115,589 |
|
|
121,502 |
|
|
175,945 |
|
||
Total net sales by end market |
$ |
206,105 |
|
$ |
192,948 |
|
$ |
236,539 |
|
||
SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (in thousands, except per share data) (unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
April 28, 2024 |
|
January 28, 2024 |
|
April 30, 2023 |
||||||
|
Q125 |
|
Q424 |
|
Q124 |
||||||
Gross margin (GAAP) |
|
48.3 |
% |
|
|
(0.2 |
)% |
|
|
43.5 |
% |
Share-based compensation |
|
0.4 |
% |
|
|
0.3 |
% |
|
|
0.2 |
% |
Amortization of acquired technology |
|
1.1 |
% |
|
|
1.2 |
% |
|
|
4.6 |
% |
Restructuring and other reserves, net |
|
— |
% |
|
|
— |
% |
|
|
0.2 |
% |
Acquired technology impairments |
|
— |
% |
|
|
47.6 |
% |
|
|
— |
% |
Adjusted gross margin (Non-GAAP) |
|
49.8 |
% |
|
|
48.9 |
% |
|
|
48.5 |
% |
|
|
|
|
|
|
||||||
|
Three Months Ended |
||||||||||
|
April 28, 2024 |
|
January 28, 2024 |
|
April 30, 2023 |
||||||
|
Q125 |
|
Q424 |
|
Q124 |
||||||
Selling, general and administrative (GAAP) |
$ |
52,269 |
|
|
$ |
55,198 |
|
|
$ |
57,780 |
|
Share-based compensation |
|
(11,391 |
) |
|
|
(8,361 |
) |
|
|
(4,502 |
) |
Transaction and integration related costs, net |
|
(1,845 |
) |
|
|
(8,476 |
) |
|
|
(7,068 |
) |
Litigation costs, net |
|
(98 |
) |
|
|
(36 |
) |
|
|
(26 |
) |
Adjusted selling, general and administrative (Non-GAAP) |
$ |
38,935 |
|
|
$ |
38,325 |
|
|
$ |
46,184 |
|
|
|
|
|
|
|
||||||
|
Three Months Ended |
||||||||||
|
April 28, 2024 |
|
January 28, 2024 |
|
April 30, 2023 |
||||||
|
Q125 |
|
Q424 |
|
Q124 |
||||||
Product development and engineering (GAAP) |
$ |
41,604 |
|
|
$ |
41,505 |
|
|
$ |
50,601 |
|
Share-based compensation |
|
(3,161 |
) |
|
|
(2,868 |
) |
|
|
(3,539 |
) |
Transaction and integration related costs, net |
|
— |
|
|
|
(432 |
) |
|
|
(534 |
) |
Adjusted product development and engineering (Non-GAAP) |
$ |
38,443 |
|
|
$ |
38,205 |
|
|
$ |
46,528 |
|
|
Three Months Ended |
||||||||||
|
April 28, 2024 |
|
January 28, 2024 |
|
April 30, 2023 |
||||||
|
Q125 |
|
Q424 |
|
Q124 |
||||||
Operating expenses, net (GAAP) |
$ |
96,449 |
|
|
$ |
619,570 |
|
|
$ |
114,826 |
|
Share-based compensation |
|
(14,552 |
) |
|
|
(11,229 |
) |
|
|
(8,041 |
) |
Intangible amortization |
|
(307 |
) |
|
|
(307 |
) |
|
|
(4,882 |
) |
Transaction and integration related costs, net |
|
(1,845 |
) |
|
|
(8,908 |
) |
|
|
(7,602 |
) |
Restructuring and other reserves, net |
|
(2,269 |
) |
|
|
(9,167 |
) |
|
|
(1,563 |
) |
Litigation costs, net |
|
(98 |
) |
|
|
(36 |
) |
|
|
(26 |
) |
Intangible impairments |
|
— |
|
|
|
(39,593 |
) |
|
|
— |
|
Goodwill impairment |
|
— |
|
|
|
(473,800 |
) |
|
|
— |
|
Adjusted operating expenses, net (Non-GAAP) |
$ |
77,378 |
|
|
$ |
76,530 |
|
|
$ |
92,712 |
|
SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in thousands, except per share data) (unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
April 28, 2024 |
|
January 28, 2024 |
|
April 30, 2023 |
||||||
|
Q125 |
|
Q424 |
|
Q124 |
||||||
Operating income (loss) (GAAP) |
$ |
3,143 |
|
|
$ |
(619,960 |
) |
|
$ |
(11,880 |
) |
Share-based compensation |
|
15,234 |
|
|
|
11,829 |
|
|
|
8,404 |
|
Intangible amortization |
|
2,588 |
|
|
|
2,587 |
|
|
|
15,737 |
|
Transaction and integration related costs, net |
|
1,845 |
|
|
|
8,908 |
|
|
|
7,651 |
|
Restructuring and other reserves, net |
|
2,269 |
|
|
|
9,167 |
|
|
|
2,060 |
|
Litigation costs, net |
|
98 |
|
|
|
36 |
|
|
|
26 |
|
Intangible impairments |
|
— |
|
|
|
131,385 |
|
|
|
— |
|
Goodwill impairment |
|
— |
|
|
|
473,800 |
|
|
|
— |
|
Adjusted operating income (Non-GAAP) |
$ |
25,177 |
|
|
$ |
17,752 |
|
|
$ |
21,998 |
|
|
Three Months Ended |
||||||||||
|
April 28, 2024 |
|
January 28, 2024 |
|
April 30, 2023 |
||||||
|
Q125 |
|
Q424 |
|
Q124 |
||||||
Operating margin (GAAP) |
|
1.5 |
% |
|
|
(321.3 |
)% |
|
|
(5.0 |
)% |
Share-based compensation |
|
7.4 |
% |
|
|
6.1 |
% |
|
|
3.6 |
% |
Intangible amortization |
|
1.3 |
% |
|
|
1.3 |
% |
|
|
6.6 |
% |
Transaction and integration related costs, net |
|
0.9 |
% |
|
|
4.6 |
% |
|
|
3.2 |
% |
Restructuring and other reserves, net |
|
1.1 |
% |
|
|
4.8 |
% |
|
|
0.9 |
% |
Intangible impairments |
|
— |
% |
|
|
68.1 |
% |
|
|
— |
% |
Goodwill impairment |
|
— |
% |
|
|
245.6 |
% |
|
|
— |
% |
Adjusted operating margin (Non-GAAP) |
|
12.2 |
% |
|
|
9.2 |
% |
|
|
9.3 |
% |
|
|
|
|
|
|
||||||
|
Three Months Ended |
||||||||||
|
April 28, 2024 |
|
January 28, 2024 |
|
April 30, 2023 |
||||||
|
Q125 |
|
Q424 |
|
Q124 |
||||||
Interest expense, net (GAAP) |
$ |
22,687 |
|
|
$ |
22,093 |
|
|
$ |
19,441 |
|
Amortization of deferred financing costs |
|
(2,379 |
) |
|
|
(2,380 |
) |
|
|
(1,414 |
) |
Investment income |
|
170 |
|
|
|
201 |
|
|
|
350 |
|
Adjusted interest expense, net (Non-GAAP) |
$ |
20,478 |
|
|
$ |
19,914 |
|
|
$ |
18,377 |
|
SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in thousands, except per share data) (unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
April 28, 2024 |
|
January 28, 2024 |
|
April 30, 2023 |
||||||
|
Q125 |
|
Q424 |
|
Q124 |
||||||
GAAP net loss attributable to common stockholders |
$ |
(23,159 |
) |
|
$ |
(642,363 |
) |
|
$ |
(29,415 |
) |
Adjustments to GAAP net loss attributable to common stockholders: |
|
|
|
|
|
||||||
Share-based compensation |
|
15,234 |
|
|
|
11,829 |
|
|
|
8,404 |
|
Intangible amortization |
|
2,588 |
|
|
|
2,587 |
|
|
|
15,737 |
|
Transaction and integration related costs, net |
|
1,845 |
|
|
|
8,908 |
|
|
|
7,651 |
|
Restructuring and other reserves, net |
|
2,269 |
|
|
|
9,167 |
|
|
|
2,060 |
|
Litigation costs, net |
|
98 |
|
|
|
36 |
|
|
|
26 |
|
Investment losses (gains), reserves and impairments, net |
|
662 |
|
|
|
1,478 |
|
|
|
(317 |
) |
Amortization of deferred financing costs |
|
2,379 |
|
|
|
2,380 |
|
|
|
1,414 |
|
Intangible impairments |
|
— |
|
|
|
131,385 |
|
|
|
— |
|
Goodwill impairment |
|
— |
|
|
|
473,800 |
|
|
|
— |
|
Total Non-GAAP adjustments before taxes |
|
25,075 |
|
|
|
641,570 |
|
|
|
34,975 |
|
Associated tax effect |
|
2,233 |
|
|
|
(2,840 |
) |
|
|
(2,795 |
) |
Equity method (income) loss |
|
(50 |
) |
|
|
(75 |
) |
|
|
7 |
|
Total of supplemental information, net of taxes |
|
27,258 |
|
|
|
638,655 |
|
|
|
32,187 |
|
Non-GAAP net income (loss) attributable to common stockholders |
$ |
4,099 |
|
|
$ |
(3,708 |
) |
|
$ |
2,772 |
|
|
|
|
|
|
|
||||||
GAAP diluted loss per share |
$ |
(0.36 |
) |
|
$ |
(9.98 |
) |
|
$ |
(0.46 |
) |
Adjustments per above |
|
0.42 |
|
|
|
9.92 |
|
|
|
0.50 |
|
Non-GAAP diluted earnings (loss) per share |
$ |
0.06 |
|
|
$ |
(0.06 |
) |
|
$ |
0.04 |
|
|
|
|
|
|
|
||||||
Weighted-average number of shares used in computing diluted earnings (loss) per share: |
|
|
|
|
|
||||||
GAAP |
|
64,509 |
|
|
|
64,363 |
|
|
|
63,924 |
|
Non-GAAP |
|
67,620 |
|
|
|
64,363 |
|
|
|
63,924 |
|
SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in thousands, except per share data) (unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
April 28, 2024 |
|
January 28, 2024 |
|
April 30, 2023 |
||||||
|
Q125 |
|
Q424 |
|
Q124 |
||||||
GAAP net loss attributable to common stockholders |
$ |
(23,159 |
) |
|
$ |
(642,363 |
) |
|
$ |
(29,415 |
) |
Interest expense |
|
23,229 |
|
|
|
22,827 |
|
|
|
20,510 |
|
Interest income |
|
(542 |
) |
|
|
(734 |
) |
|
|
(1,069 |
) |
Non-operating (income) expense, net |
|
(400 |
) |
|
|
2,045 |
|
|
|
473 |
|
Investment impairments and credit loss reserves, net |
|
1,109 |
|
|
|
1,679 |
|
|
|
33 |
|
Provision (benefit) for income taxes |
|
2,956 |
|
|
|
(3,345 |
) |
|
|
(2,417 |
) |
Equity method (income) loss |
|
(50 |
) |
|
|
(75 |
) |
|
|
7 |
|
Net income (loss) attributable to noncontrolling interest |
|
— |
|
|
|
6 |
|
|
|
(2 |
) |
Share-based compensation |
|
15,234 |
|
|
|
11,829 |
|
|
|
8,404 |
|
Depreciation and amortization |
|
10,504 |
|
|
|
8,864 |
|
|
|
24,523 |
|
Transaction and integration related costs, net |
|
1,845 |
|
|
|
8,908 |
|
|
|
7,651 |
|
Restructuring and other reserves, net |
|
2,269 |
|
|
|
9,167 |
|
|
|
2,060 |
|
Litigation costs, net |
|
98 |
|
|
|
36 |
|
|
|
26 |
|
Intangible impairments |
|
— |
|
|
|
131,385 |
|
|
|
— |
|
Goodwill impairment |
|
— |
|
|
|
473,800 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
33,093 |
|
|
$ |
24,029 |
|
|
$ |
30,784 |
|
|
|
|
|
|
|
||||||
Adjusted EBITDA margin |
|
16.1 |
% |
|
|
12.5 |
% |
|
|
13.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240605850976/en/
Sara Kesten
Semtech Corporation
(805) 480-2004
webir@semtech.com
Source: Semtech Corporation
FAQ
What were Semtech's net sales for Q1 FY 2025?
How did Semtech's GAAP gross margin perform in Q1 FY 2025?
What is Semtech's non-GAAP net income for Q1 FY 2025?
What was Semtech's GAAP net loss in Q1 FY 2025?
What are Semtech's projections for Q2 FY 2025?
How did Semtech's non-GAAP operating expenses change YoY in Q1 FY 2025?
What was Semtech's GAAP diluted loss per share in Q1 FY 2025?
How much was Semtech's adjusted EBITDA for Q1 FY 2025?
