Semtech Announces Second Quarter of Fiscal Year 2025 Results
Semtech (Nasdaq: SMTC) reported its Q2 FY2025 results, showing positive momentum. Net sales reached $215.4 million, up 4% sequentially. GAAP gross margin improved to 49.0%, while non-GAAP gross margin rose to 50.4%. The company's GAAP operating margin increased to 3.6%, and non-GAAP operating margin reached 14.2%. Despite a GAAP diluted loss per share of $2.61, Semtech achieved non-GAAP diluted earnings per share of $0.11. The adjusted EBITDA margin improved to 18.8%.
Looking ahead, Semtech provided a positive outlook for Q3 FY2025, forecasting net sales of $233.0 million (±$5.0 million) and non-GAAP diluted earnings per share of $0.23 (±$0.03). The company expects further improvements in gross margin, operating margin, and adjusted EBITDA margin.
Semtech (Nasdaq: SMTC) ha riportato i risultati del secondo trimestre dell'anno fiscale 2025, mostrando una buona crescita. Le vendite nette hanno raggiunto 215,4 milioni di dollari, con un aumento del 4% rispetto al trimestre precedente. Il margine lordo GAAP è migliorato al 49,0%, mentre il margine lordo non GAAP è salito al 50,4%. Il margine operativo GAAP dell'azienda è aumentato al 3,6%, mentre il margine operativo non GAAP ha raggiunto il 14,2%. Nonostante una perdita diluita per azione GAAP di $2,61, Semtech ha realizzato un utile diluito per azione non GAAP di $0,11. Il margine EBITDA rettificato è migliorato al 18,8%.
Guardando al futuro, Semtech ha fornito una previsione positiva per il terzo trimestre dell'anno fiscale 2025, prevedendo vendite nette di 233,0 milioni di dollari (±5,0 milioni) e un utile diluito per azione non GAAP di $0,23 (±$0,03). L'azienda si aspetta ulteriori miglioramenti nel margine lordo, nel margine operativo e nel margine EBITDA rettificato.
Semtech (Nasdaq: SMTC) informó sobre sus resultados del segundo trimestre del año fiscal 2025, mostrando un impulso positivo. Las ventas netas alcanzaron los 215,4 millones de dólares, un aumento del 4% en comparación con el trimestre anterior. El margen bruto GAAP mejoró al 49,0%, mientras que el margen bruto no GAAP se elevó al 50,4%. El margen operativo GAAP de la empresa aumentó al 3,6%, y el margen operativo no GAAP alcanzó el 14,2%. A pesar de una pérdida diluida por acción GAAP de $2,61, Semtech logró un ingreso diluido por acción no GAAP de $0,11. El margen EBITDA ajustado mejoró al 18,8%.
De cara al futuro, Semtech proporcionó una perspectiva positiva para el tercer trimestre del año fiscal 2025, pronosticando ventas netas de 233,0 millones de dólares (±5,0 millones) y un ingreso diluido por acción no GAAP de $0,23 (±$0,03). La empresa espera más mejoras en el margen bruto, el margen operativo y el margen EBITDA ajustado.
Semtech (Nasdaq: SMTC)는 2025 회계연도 2분기 실적을 발표하며 긍정적인 성장세를 보였습니다. 순매출은 2억 1,540만 달러에 이르렀으며, 이전 분기 대비 4% 증가했습니다. GAAP 총 마진은 49.0%로 개선되었고, 비 GAAP 총 마진은 50.4%로 상승했습니다. 회사의 GAAP 영업 마진은 3.6%로 증가하였고, 비 GAAP 영업 마진은 14.2%에 도달했습니다. $2.61의 GAAP 희석 주당 손실에도 불구하고, Semtech는 비 GAAP 희석 주당 순이익이 $0.11을 기록했습니다. 조정 EBITDA 마진은 18.8%로 개선되었습니다.
앞으로 Semtech는 2025 회계연도 3분기에 대한 긍정적인 전망을 제시하며, 순매출이 2억 3,300만 달러(±500만 달러)와 비 GAAP 희석 주당 순이익이 $0.23(±$0.03)에 이를 것으로 예상하고 있습니다. 회사는 총 마진, 영업 마진 및 조정 EBITDA 마진의 추가 개선을 기대하고 있습니다.
Semtech (Nasdaq: SMTC) a annoncé ses résultats du deuxième trimestre de l'exercice 2025, montrant une dynamique positive. Les ventes nettes ont atteint 215,4 millions de dollars, soit une augmentation de 4 % par rapport au trimestre précédent. Le marge brute GAAP s'est amélioré à 49,0 %, tandis que le marge brute non GAAP a grimpé à 50,4 %. Le marge d'exploitation GAAP de l'entreprise a augmenté à 3,6 %, et le marge d'exploitation non GAAP a atteint 14,2 %. Malgré une perte diluée par action de 2,61 $ en GAAP, Semtech a réalisé un bénéfice dilué par action non GAAP de 0,11 $. Le marge EBITDA ajustée s'est amélioré à 18,8 %.
En regardant vers l'avenir, Semtech a fourni un prévision positive pour le troisième trimestre de l'exercice 2025, prévoyant des ventes nettes de 233,0 millions de dollars (±5,0 millions) et un bénéfice dilué par action non GAAP de 0,23 $ (±0,03 $). L'entreprise s'attend à d'autres améliorations des marges brutes, des marges d'exploitation et des marges EBITDA ajustées.
Semtech (Nasdaq: SMTC) berichtete über die Ergebnisse des 2. Quartals des Geschäftsjahres 2025 und zeigte ein positives Momentum. Die Nettoverkäufe erreichten 215,4 Millionen Dollar, was einem Anstieg von 4 % im Vergleich zum vorherigen Quartal entspricht. Der GAAP-Bruttomargen verbesserte sich auf 49,0 %, während der non-GAAP-Bruttomarge auf 50,4 % anstieg. Die GAAP-Betriebsgewinne des Unternehmens stiegen auf 3,6 %, und der Non-GAAP-Betriebsgewinn erreichte 14,2 %. Trotz eines GAAP verdünnten Verlusts pro Aktie von 2,61 US-Dollar erzielte Semtech einen non-GAAP verdünnten Gewinn pro Aktie von 0,11 US-Dollar. Der angepasste EBITDA-Marge verbesserte sich auf 18,8 %.
Für die Zukunft gab Semtech einen positiven Ausblick auf das 3. Quartal des Geschäftsjahres 2025, mit einer Prognose für Nettoverkäufe von 233,0 Millionen Dollar (±5,0 Millionen) und einem non-GAAP verdünnten Gewinn pro Aktie von 0,23 US-Dollar (±0,03 USD). Das Unternehmen erwartet weitere Verbesserungen der Bruttomarge, der Betriebsmarge und der angepassten EBITDA-Marge.
- Net sales increased 4% sequentially to $215.4 million
- GAAP gross margin improved 70 basis points to 49.0%
- Non-GAAP gross margin rose 60 basis points to 50.4%
- GAAP operating margin increased 210 basis points to 3.6%
- Non-GAAP operating margin improved 200 basis points to 14.2%
- Adjusted EBITDA margin up 270 basis points to 18.8%
- Positive Q3 outlook with projected net sales of $233.0 million ±$5.0 million
- GAAP diluted loss per share of $2.61
- Net loss attributable to common stockholders of $170.3 million
Insights
Semtech's Q2 FY2025 results show positive momentum with sequential improvements across key metrics. Net sales increased 4% to
However, the GAAP diluted loss per share of
The Q3 outlook is particularly encouraging, with projected net sales of
Semtech's Q2 results and Q3 outlook reflect a broader recovery trend in the semiconductor industry. The sequential growth in net sales and margin improvements suggest increasing demand for Semtech's high-performance semiconductors and IoT systems. This aligns with the growing adoption of IoT technologies across various sectors.
The company's focus on "disciplined growth" is noteworthy in the current economic climate. By balancing cost control with strategic investments, Semtech is positioning itself to capitalize on emerging opportunities in cloud connectivity and IoT. The projected increase in Q3 net sales to
Investors should monitor Semtech's ability to sustain this growth trajectory and further improve profitability. The anticipated non-GAAP operating margin of
-
Net sales of
$215.4 million 4% sequentially -
GAAP gross margin of
49.0% , up 70 basis points sequentially and Non-GAAP gross margin of50.4% , up 60 basis points sequentially -
GAAP operating margin of
3.6% , up 210 basis points sequentially and Non-GAAP operating margin of14.2% , up 200 basis points sequentially -
GAAP diluted loss per share of
$2.61 $0.11 -
Adjusted EBITDA margin of
18.8% , up 270 basis points sequentially
"Semtech continues to execute on an established strategy to grow our business, as demonstrated by solid second quarter financial performance and a favorable outlook for our third quarter that forecasts acceleration of this growth," said Hong Hou, Semtech's president and chief executive officer. "We are well-positioned to capture significant future market opportunities through a disciplined growth-focused approach."
"I am pleased to report gross, operating and adjusted EBITDA margin each improved sequentially and year-over-year in our second quarter," said Mark Lin, Semtech's executive vice president and chief financial officer. "Continued improvements in these metrics, along with net sales growth in our third quarter outlook, demonstrate our commitment to prudent cost control while continuing to grow the business."
Second Quarter of Fiscal Year 2025 Results
|
GAAP Financial Results |
|
Non-GAAP Financial Results |
||||||||||||||||||||
(in millions, except per share data) |
Q225 |
|
Q125 |
|
Q224 |
|
Q225 |
|
Q125 |
|
Q224 |
||||||||||||
Net sales |
$ |
215.4 |
|
|
$ |
206.1 |
|
|
$ |
238.4 |
|
|
$ |
215.4 |
|
|
$ |
206.1 |
|
|
$ |
238.4 |
|
Gross margin |
|
49.0 |
% |
|
|
48.3 |
% |
|
|
42.3 |
% |
|
|
50.4 |
% |
|
|
49.8 |
% |
|
|
49.6 |
% |
Operating expenses, net |
$ |
97.7 |
|
|
$ |
96.4 |
|
|
$ |
400.8 |
|
|
$ |
77.9 |
|
|
$ |
77.4 |
|
|
$ |
85.7 |
|
Operating income (loss) |
$ |
7.8 |
|
|
$ |
3.1 |
|
|
$ |
(300.1 |
) |
|
$ |
30.5 |
|
|
$ |
25.2 |
|
|
$ |
32.4 |
|
Operating margin |
|
3.6 |
% |
|
|
1.5 |
% |
|
|
(125.9 |
)% |
|
|
14.2 |
% |
|
|
12.2 |
% |
|
|
13.6 |
% |
Interest expense, net |
$ |
28.1 |
|
|
$ |
22.7 |
|
|
$ |
23.5 |
|
|
$ |
20.5 |
|
|
$ |
20.5 |
|
|
$ |
21.2 |
|
Net (loss) income attributable to common stockholders |
$ |
(170.3 |
) |
|
$ |
(23.2 |
) |
|
$ |
(382.0 |
) |
|
$ |
8.1 |
|
|
$ |
4.1 |
|
|
$ |
8.5 |
|
Diluted (loss) earnings per share |
$ |
(2.61 |
) |
|
$ |
(0.36 |
) |
|
$ |
(5.97 |
) |
|
$ |
0.11 |
|
|
$ |
0.06 |
|
|
$ |
0.13 |
|
Adjusted EBITDA |
|
|
|
|
|
|
$ |
40.5 |
|
|
$ |
33.1 |
|
|
$ |
39.0 |
|
||||||
Adjusted EBITDA margin |
|
|
|
|
|
|
|
18.8 |
% |
|
|
16.1 |
% |
|
|
16.4 |
% |
||||||
See "Non-GAAP Financial Measures" below for additional information about our non-GAAP financial results.
Third Quarter of Fiscal Year 2025 Outlook
(in millions, except per share data) |
|
||||||
Net sales |
$ |
233.0 |
|
|
+/- |
|
|
Non-GAAP Financial Measures |
|
|
|
|
|
||
Gross margin |
|
52.0 |
% |
|
+/- |
|
50 bps |
Operating expenses, net |
$ |
81.0 |
|
|
+/- |
|
|
Operating income |
$ |
40.2 |
|
|
+/- |
|
|
Operating margin |
|
17.2 |
% |
|
+/- |
|
80 bps |
Interest expense, net |
$ |
18.8 |
|
|
|
|
|
Normalized tax rate |
|
15 |
% |
|
|
|
|
Diluted earnings per share |
$ |
0.23 |
|
|
+/- |
|
|
Adjusted EBITDA |
$ |
48.7 |
|
|
+/- |
|
|
Adjusted EBITDA margin |
|
20.9 |
% |
|
+/- |
|
80 bps |
|
|
|
|
|
|
||
Diluted share count |
|
78.6 |
|
|
|
|
|
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 second 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 13746449. 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 September 24, 2024 at the same website or by calling (877) 660-6853 and entering conference ID 13746449.
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
- Loss on extinguishment of debt
- 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.
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 second and first quarters of fiscal year 2025 and the second quarter of fiscal year 2024.
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
To provide additional insight into the Company's third quarter outlook, this release also includes a presentation of forward-looking non-GAAP financial measures. See "Third Quarter of Fiscal Year 2025 Outlook" above for further information.
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 third 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," "could," "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 and six months ended July 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.
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 |
||||||||||
|
July 28,
|
|
April 28,
|
|
July 30,
|
||||||
|
Q225 |
|
Q125 |
|
Q224 |
||||||
Net sales |
$ |
215,355 |
|
|
$ |
206,105 |
|
|
$ |
238,372 |
|
Cost of sales |
|
107,612 |
|
|
|
104,232 |
|
|
|
127,071 |
|
Amortization of acquired technology |
|
2,279 |
|
|
|
2,281 |
|
|
|
10,573 |
|
Total cost of sales |
|
109,891 |
|
|
|
106,513 |
|
|
|
137,644 |
|
Gross profit |
|
105,464 |
|
|
|
99,592 |
|
|
|
100,728 |
|
Operating expenses, net: |
|
|
|
|
|
||||||
Selling, general and administrative |
|
55,789 |
|
|
|
52,269 |
|
|
|
59,579 |
|
Product development and engineering |
|
40,084 |
|
|
|
41,604 |
|
|
|
47,433 |
|
Intangible amortization |
|
282 |
|
|
|
307 |
|
|
|
4,871 |
|
Restructuring |
|
1,541 |
|
|
|
2,269 |
|
|
|
9,399 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
279,555 |
|
Total operating expenses, net |
|
97,696 |
|
|
|
96,449 |
|
|
|
400,837 |
|
Operating income (loss) |
|
7,768 |
|
|
|
3,143 |
|
|
|
(300,109 |
) |
Interest expense |
|
(28,578 |
) |
|
|
(23,229 |
) |
|
|
(24,171 |
) |
Interest income |
|
433 |
|
|
|
542 |
|
|
|
674 |
|
Loss on extinguishment of debt |
|
(144,688 |
) |
|
|
— |
|
|
|
— |
|
Non-operating (expense) income, net |
|
(1,015 |
) |
|
|
400 |
|
|
|
(1,566 |
) |
Investment impairments and credit loss reserves, net |
|
— |
|
|
|
(1,109 |
) |
|
|
(227 |
) |
Loss before taxes and equity method income (loss) |
|
(166,080 |
) |
|
|
(20,253 |
) |
|
|
(325,399 |
) |
Provision for income taxes |
|
4,215 |
|
|
|
2,956 |
|
|
|
56,592 |
|
Net loss before equity method income (loss) |
|
(170,295 |
) |
|
|
(23,209 |
) |
|
|
(381,991 |
) |
Equity method income (loss) |
|
— |
|
|
|
50 |
|
|
|
(12 |
) |
Net loss |
|
(170,295 |
) |
|
|
(23,159 |
) |
|
|
(382,003 |
) |
Net loss attributable to noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Net loss attributable to common stockholders |
$ |
(170,295 |
) |
|
$ |
(23,159 |
) |
|
$ |
(382,002 |
) |
|
|
|
|
|
|
||||||
Loss per share: |
|
|
|
|
|
||||||
Basic |
$ |
(2.61 |
) |
|
$ |
(0.36 |
) |
|
$ |
(5.97 |
) |
Diluted |
$ |
(2.61 |
) |
|
$ |
(0.36 |
) |
|
$ |
(5.97 |
) |
|
|
|
|
|
|
||||||
Weighted average number of shares used in computing loss per share: |
|
|
|
|
|
||||||
Basic |
|
65,281 |
|
|
|
64,509 |
|
|
|
64,005 |
|
Diluted |
|
65,281 |
|
|
|
64,509 |
|
|
|
64,005 |
|
SEMTECH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
|||||||
|
July 28, 2024 |
|
January 28, 2024 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
115,928 |
|
|
$ |
128,585 |
|
Accounts receivable, net |
|
152,976 |
|
|
|
134,322 |
|
Inventories |
|
156,011 |
|
|
|
144,992 |
|
Prepaid taxes |
|
15,375 |
|
|
|
11,969 |
|
Other current assets |
|
101,453 |
|
|
|
114,329 |
|
Total current assets |
|
541,743 |
|
|
|
534,197 |
|
Non-current assets: |
|
|
|
||||
Property, plant and equipment, net |
|
139,525 |
|
|
|
153,618 |
|
Deferred tax assets |
|
18,017 |
|
|
|
18,014 |
|
Goodwill |
|
541,104 |
|
|
|
541,227 |
|
Other intangible assets, net |
|
35,354 |
|
|
|
35,566 |
|
Other assets |
|
92,257 |
|
|
|
91,113 |
|
Total assets |
$ |
1,368,000 |
|
|
$ |
1,373,735 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY (DEFICIT) |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
75,760 |
|
|
$ |
45,051 |
|
Accrued liabilities |
|
148,913 |
|
|
|
172,105 |
|
Total current liabilities |
|
224,673 |
|
|
|
217,156 |
|
Non-current liabilities: |
|
|
|
||||
Deferred tax liabilities |
|
— |
|
|
|
829 |
|
Long-term debt |
|
1,192,865 |
|
|
|
1,371,039 |
|
Other long-term liabilities |
|
91,899 |
|
|
|
91,961 |
|
Stockholders’ deficit |
|
(141,437 |
) |
|
|
(307,434 |
) |
Noncontrolling interest |
|
— |
|
|
|
184 |
|
Total liabilities & equity (deficit) |
$ |
1,368,000 |
|
|
$ |
1,373,735 |
|
SEMTECH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND SUPPLEMENTAL INFORMATION (in thousands) (unaudited) |
|||||||||||
|
|
|
Six Months Ended |
||||||||
|
|
|
July 28,
|
|
July 30,
|
||||||
Net loss |
|
|
$ |
(193,454 |
) |
|
$ |
(411,420 |
) |
||
|
|
|
|
|
|
||||||
Net cash used in operating activities |
|
|
|
(5,084 |
) |
|
|
(101,992 |
) |
||
Net cash used in investing activities |
|
|
|
(2,672 |
) |
|
|
(19,577 |
) |
||
Net cash (used in) provided by financing activities |
|
|
|
(4,550 |
) |
|
|
34,727 |
|
||
Effect of foreign exchange rate changes on cash and cash equivalents |
|
|
|
(351 |
) |
|
|
(756 |
) |
||
Net decrease in cash and cash equivalents |
|
|
|
(12,657 |
) |
|
|
(87,598 |
) |
||
Cash and cash equivalents at beginning of period |
|
|
|
128,585 |
|
|
|
235,510 |
|
||
Cash and cash equivalents at end of period |
|
|
$ |
115,928 |
|
|
$ |
147,912 |
|
||
|
|
|
|
|
|
||||||
|
Three Months Ended |
||||||||||
|
July 28,
|
|
April 28,
|
|
July 30,
|
||||||
|
Q225 |
|
Q125 |
|
Q224 |
||||||
Free cash flow: |
|
|
|
|
|
||||||
Cash flow from operations |
$ |
(4,995 |
) |
|
$ |
(89 |
) |
|
$ |
(12,005 |
) |
Net capital expenditures |
|
(3,411 |
) |
|
|
(1,334 |
) |
|
|
(6,920 |
) |
Free cash flow |
$ |
(8,406 |
) |
|
$ |
(1,423 |
) |
|
$ |
(18,925 |
) |
SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (in thousands, except per share data) (unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
July 28,
|
|
April 28,
|
|
July 30,
|
|
July 28,
|
|
July 30,
|
||||||||||
|
Q225 |
|
Q125 |
|
Q224 |
|
Q225 |
|
Q224 |
||||||||||
Gross margin (GAAP) |
|
49.0 |
% |
|
|
48.3 |
% |
|
|
42.3 |
% |
|
|
48.7 |
% |
|
|
42.9 |
% |
Share-based compensation |
|
0.3 |
% |
|
|
0.4 |
% |
|
|
0.2 |
% |
|
|
0.3 |
% |
|
|
0.2 |
% |
Amortization of acquired technology |
|
1.1 |
% |
|
|
1.1 |
% |
|
|
4.4 |
% |
|
|
1.1 |
% |
|
|
4.4 |
% |
Transaction and integration related costs, net |
|
— |
% |
|
|
— |
% |
|
|
1.1 |
% |
|
|
— |
% |
|
|
0.6 |
% |
Restructuring and other reserves, net |
|
— |
% |
|
|
— |
% |
|
|
0.2 |
% |
|
|
— |
% |
|
|
0.2 |
% |
Amortization of inventory step-up |
|
— |
% |
|
|
— |
% |
|
|
1.4 |
% |
|
|
— |
% |
|
|
0.7 |
% |
Adjusted gross margin (Non-GAAP) |
|
50.4 |
% |
|
|
49.8 |
% |
|
|
49.6 |
% |
|
|
50.1 |
% |
|
|
49.0 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
July 28,
|
|
April 28,
|
|
July 30,
|
|
July 28,
|
|
July 30,
|
||||||||||
|
Q225 |
|
Q125 |
|
Q224 |
|
Q225 |
|
Q224 |
||||||||||
Selling, general and administrative (GAAP) |
$ |
55,789 |
|
|
$ |
52,269 |
|
|
$ |
59,579 |
|
|
$ |
108,058 |
|
|
$ |
117,359 |
|
Share-based compensation |
|
(12,982 |
) |
|
|
(11,391 |
) |
|
|
(9,409 |
) |
|
|
(24,373 |
) |
|
|
(13,911 |
) |
Transaction and integration related costs, net |
|
(1,473 |
) |
|
|
(1,845 |
) |
|
|
(7,271 |
) |
|
|
(3,318 |
) |
|
|
(14,339 |
) |
Litigation costs, net |
|
(57 |
) |
|
|
(98 |
) |
|
|
(132 |
) |
|
|
(155 |
) |
|
|
(158 |
) |
Adjusted selling, general and administrative (Non-GAAP) |
$ |
41,277 |
|
|
$ |
38,935 |
|
|
$ |
42,767 |
|
|
$ |
80,212 |
|
|
$ |
88,951 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
July 28,
|
|
April 28,
|
|
July 30,
|
|
July 28,
|
|
July 30,
|
||||||||||
|
Q225 |
|
Q125 |
|
Q224 |
|
Q225 |
|
Q224 |
||||||||||
Product development and engineering (GAAP) |
$ |
40,084 |
|
|
$ |
41,604 |
|
|
$ |
47,433 |
|
|
$ |
81,688 |
|
|
$ |
98,034 |
|
Share-based compensation |
|
(3,442 |
) |
|
|
(3,161 |
) |
|
|
(3,465 |
) |
|
|
(6,603 |
) |
|
|
(7,004 |
) |
Transaction and integration related costs, net |
|
— |
|
|
|
— |
|
|
|
(1,016 |
) |
|
|
— |
|
|
|
(1,550 |
) |
Adjusted product development and engineering (Non-GAAP) |
$ |
36,642 |
|
|
$ |
38,443 |
|
|
$ |
42,952 |
|
|
$ |
75,085 |
|
|
$ |
89,480 |
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
July 28,
|
|
April 28,
|
|
July 30,
|
|
July 28,
|
|
July 30,
|
||||||||||
|
Q225 |
|
Q125 |
|
Q224 |
|
Q225 |
|
Q224 |
||||||||||
Operating expenses, net (GAAP) |
$ |
97,696 |
|
|
$ |
96,449 |
|
|
$ |
400,837 |
|
|
$ |
194,145 |
|
|
$ |
515,663 |
|
Share-based compensation |
|
(16,424 |
) |
|
|
(14,552 |
) |
|
|
(12,874 |
) |
|
|
(30,976 |
) |
|
|
(20,915 |
) |
Intangible amortization |
|
(282 |
) |
|
|
(307 |
) |
|
|
(4,871 |
) |
|
|
(589 |
) |
|
|
(9,753 |
) |
Transaction and integration related costs, net |
|
(1,473 |
) |
|
|
(1,845 |
) |
|
|
(8,287 |
) |
|
|
(3,318 |
) |
|
|
(15,889 |
) |
Restructuring and other reserves, net |
|
(1,541 |
) |
|
|
(2,269 |
) |
|
|
(9,399 |
) |
|
|
(3,810 |
) |
|
|
(10,962 |
) |
Litigation costs, net |
|
(57 |
) |
|
|
(98 |
) |
|
|
(132 |
) |
|
|
(155 |
) |
|
|
(158 |
) |
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
(279,555 |
) |
|
|
— |
|
|
|
(279,555 |
) |
Adjusted operating expenses, net (Non-GAAP) |
$ |
77,919 |
|
|
$ |
77,378 |
|
|
$ |
85,719 |
|
|
$ |
155,297 |
|
|
$ |
178,431 |
|
SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in thousands, except per share data) (unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
July 28,
|
|
April 28,
|
|
July 30,
|
|
July 28,
|
|
July 30,
|
|||||||
|
Q225 |
|
Q125 |
|
Q224 |
|
Q225 |
|
Q224 |
|||||||
Operating income (loss) (GAAP) |
$ |
7,768 |
|
$ |
3,143 |
|
$ |
(300,109 |
) |
|
$ |
10,911 |
|
$ |
(311,989 |
) |
Share-based compensation |
|
17,138 |
|
|
15,234 |
|
|
13,399 |
|
|
|
32,372 |
|
|
21,803 |
|
Intangible amortization |
|
2,561 |
|
|
2,588 |
|
|
15,444 |
|
|
|
5,149 |
|
|
31,181 |
|
Transaction and integration related costs, net |
|
1,473 |
|
|
1,845 |
|
|
10,952 |
|
|
|
3,318 |
|
|
18,603 |
|
Restructuring and other reserves, net |
|
1,541 |
|
|
2,269 |
|
|
9,761 |
|
|
|
3,810 |
|
|
11,821 |
|
Litigation costs, net |
|
57 |
|
|
98 |
|
|
132 |
|
|
|
155 |
|
|
158 |
|
Goodwill impairment |
|
— |
|
|
— |
|
|
279,555 |
|
|
|
— |
|
|
279,555 |
|
Amortization of inventory step-up |
|
— |
|
|
— |
|
|
3,314 |
|
|
|
— |
|
|
3,314 |
|
Adjusted operating income (Non-GAAP) |
$ |
30,538 |
|
$ |
25,177 |
|
$ |
32,448 |
|
|
$ |
55,715 |
|
$ |
54,446 |
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||
|
July 28,
|
|
April 28,
|
|
July 30,
|
|
July 28,
|
|
July 30,
|
|||||
|
Q225 |
|
Q125 |
|
Q224 |
|
Q225 |
|
Q224 |
|||||
Operating margin (GAAP) |
3.6 |
% |
|
1.5 |
% |
|
(125.9 |
)% |
|
2.6 |
% |
|
(65.7 |
)% |
Share-based compensation |
8.0 |
% |
|
7.4 |
% |
|
5.6 |
% |
|
7.7 |
% |
|
4.6 |
% |
Intangible amortization |
1.2 |
% |
|
1.3 |
% |
|
6.5 |
% |
|
1.2 |
% |
|
6.6 |
% |
Transaction and integration related costs, net |
0.7 |
% |
|
0.9 |
% |
|
4.6 |
% |
|
0.8 |
% |
|
3.9 |
% |
Restructuring and other reserves, net |
0.7 |
% |
|
1.1 |
% |
|
4.1 |
% |
|
0.9 |
% |
|
2.5 |
% |
Litigation costs, net |
— |
% |
|
— |
% |
|
0.1 |
% |
|
— |
% |
|
— |
% |
Goodwill impairment |
— |
% |
|
— |
% |
|
117.2 |
% |
|
— |
% |
|
58.9 |
% |
Amortization of inventory step-up |
— |
% |
|
— |
% |
|
1.4 |
% |
|
— |
% |
|
0.7 |
% |
Adjusted operating margin (Non-GAAP) |
14.2 |
% |
|
12.2 |
% |
|
13.6 |
% |
|
13.2 |
% |
|
11.5 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
July 28,
|
|
April 28,
|
|
July 30,
|
|
July 28,
|
|
July 30,
|
||||||||||
|
Q225 |
|
Q125 |
|
Q224 |
|
Q225 |
|
Q224 |
||||||||||
Interest expense, net (GAAP) |
$ |
28,145 |
|
|
$ |
22,687 |
|
|
$ |
23,497 |
|
|
$ |
50,832 |
|
|
$ |
42,938 |
|
Amortization of deferred financing costs |
|
(2,379 |
) |
|
|
(2,379 |
) |
|
|
(1,689 |
) |
|
|
(4,758 |
) |
|
|
(3,103 |
) |
Write-off of deferred financing costs |
|
(5,497 |
) |
|
|
— |
|
|
|
(771 |
) |
|
|
(5,497 |
) |
|
|
(771 |
) |
Investment income |
|
201 |
|
|
|
170 |
|
|
|
178 |
|
|
|
371 |
|
|
|
528 |
|
Adjusted interest expense, net (Non-GAAP) |
$ |
20,470 |
|
|
$ |
20,478 |
|
|
$ |
21,215 |
|
|
$ |
40,948 |
|
|
$ |
39,592 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
July 28,
|
|
April 28,
|
|
July 30,
|
|
July 28,
|
|
July 30,
|
|||||||
|
Q225 |
|
Q125 |
|
Q224 |
|
Q225 |
|
Q224 |
|||||||
Loss on extinguishment of debt (GAAP) |
$ |
144,688 |
|
|
$ |
— |
|
$ |
— |
|
$ |
144,688 |
|
|
$ |
— |
Loss on extinguishment of debt |
|
(144,688 |
) |
|
|
— |
|
|
— |
|
|
(144,688 |
) |
|
|
— |
Adjusted loss on extinguishment of debt (Non-GAAP) |
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in thousands, except per share data) (unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
July 28,
|
|
April 28,
|
|
July 30,
|
|
July 28,
|
|
July 30,
|
||||||||||
|
Q225 |
|
Q125 |
|
Q224 |
|
Q225 |
|
Q224 |
||||||||||
GAAP net loss attributable to common stockholders |
$ |
(170,295 |
) |
|
$ |
(23,159 |
) |
|
$ |
(382,002 |
) |
|
$ |
(193,454 |
) |
|
$ |
(411,417 |
) |
Adjustments to GAAP net loss attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
||||||||||
Share-based compensation |
|
17,138 |
|
|
|
15,234 |
|
|
|
13,399 |
|
|
|
32,372 |
|
|
|
21,803 |
|
Intangible amortization |
|
2,561 |
|
|
|
2,588 |
|
|
|
15,444 |
|
|
|
5,149 |
|
|
|
31,181 |
|
Transaction and integration related costs, net |
|
1,958 |
|
|
|
1,845 |
|
|
|
10,952 |
|
|
|
3,803 |
|
|
|
18,603 |
|
Restructuring and other reserves, net |
|
1,541 |
|
|
|
2,269 |
|
|
|
9,761 |
|
|
|
3,810 |
|
|
|
11,821 |
|
Litigation costs, net |
|
57 |
|
|
|
98 |
|
|
|
132 |
|
|
|
155 |
|
|
|
158 |
|
Investment (gains) losses, reserves and impairments, net |
|
(201 |
) |
|
|
662 |
|
|
|
49 |
|
|
|
461 |
|
|
|
(268 |
) |
Amortization of deferred financing costs |
|
2,379 |
|
|
|
2,379 |
|
|
|
1,689 |
|
|
|
4,758 |
|
|
|
3,103 |
|
Write-off of deferred financing costs |
|
5,497 |
|
|
|
— |
|
|
|
771 |
|
|
|
5,497 |
|
|
|
771 |
|
Loss on extinguishment of debt |
|
144,688 |
|
|
|
— |
|
|
|
— |
|
|
|
144,688 |
|
|
|
— |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
279,555 |
|
|
|
— |
|
|
|
279,555 |
|
Amortization of inventory step-up |
|
— |
|
|
|
— |
|
|
|
3,314 |
|
|
|
— |
|
|
|
3,314 |
|
Total Non-GAAP adjustments before taxes |
|
175,618 |
|
|
|
25,075 |
|
|
|
335,066 |
|
|
|
200,693 |
|
|
|
370,041 |
|
Associated tax effect |
|
2,784 |
|
|
|
2,233 |
|
|
|
55,432 |
|
|
|
5,017 |
|
|
|
52,637 |
|
Equity method (income) loss |
|
— |
|
|
|
(50 |
) |
|
|
12 |
|
|
|
(50 |
) |
|
|
19 |
|
Total of supplemental information, net of taxes |
|
178,402 |
|
|
|
27,258 |
|
|
|
390,510 |
|
|
|
205,660 |
|
|
|
422,697 |
|
Non-GAAP net income attributable to common stockholders |
$ |
8,107 |
|
|
$ |
4,099 |
|
|
$ |
8,508 |
|
|
$ |
12,206 |
|
|
$ |
11,280 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP diluted loss per share |
$ |
(2.61 |
) |
|
$ |
(0.36 |
) |
|
$ |
(5.97 |
) |
|
$ |
(2.98 |
) |
|
$ |
(6.43 |
) |
Adjustments per above |
|
2.72 |
|
|
|
0.42 |
|
|
|
6.10 |
|
|
|
3.15 |
|
|
|
6.61 |
|
Non-GAAP diluted earnings per share |
$ |
0.11 |
|
|
$ |
0.06 |
|
|
$ |
0.13 |
|
|
$ |
0.17 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average number of shares used in computing diluted (loss) earnings per share: |
|
|
|
|
|
|
|
|
|
||||||||||
GAAP |
|
65,281 |
|
|
|
64,509 |
|
|
|
64,005 |
|
|
|
64,895 |
|
|
|
63,964 |
|
Non-GAAP |
|
71,787 |
|
|
|
67,620 |
|
|
|
64,104 |
|
|
|
69,962 |
|
|
|
64,055 |
|
SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in thousands, except per share data) (unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
July 28,
|
|
April 28,
|
|
July 30,
|
|
July 28,
|
|
July 30,
|
||||||||||
|
Q225 |
|
Q125 |
|
Q224 |
|
Q225 |
|
Q224 |
||||||||||
GAAP net loss attributable to common stockholders |
$ |
(170,295 |
) |
|
$ |
(23,159 |
) |
|
$ |
(382,002 |
) |
|
$ |
(193,454 |
) |
|
$ |
(411,417 |
) |
Interest expense |
|
28,578 |
|
|
|
23,229 |
|
|
|
24,171 |
|
|
|
51,807 |
|
|
|
44,681 |
|
Interest income |
|
(433 |
) |
|
|
(542 |
) |
|
|
(674 |
) |
|
|
(975 |
) |
|
|
(1,743 |
) |
Loss on extinguishment of debt |
|
144,688 |
|
|
|
— |
|
|
|
— |
|
|
|
144,688 |
|
|
|
— |
|
Non-operating expense (income), net |
|
1,015 |
|
|
|
(400 |
) |
|
|
1,566 |
|
|
|
615 |
|
|
|
2,039 |
|
Investment impairments and credit loss reserves, net |
|
— |
|
|
|
1,109 |
|
|
|
227 |
|
|
|
1,109 |
|
|
|
260 |
|
Provision for income taxes |
|
4,215 |
|
|
|
2,956 |
|
|
|
56,592 |
|
|
|
7,171 |
|
|
|
54,175 |
|
Equity method (income) loss |
|
— |
|
|
|
(50 |
) |
|
|
12 |
|
|
|
(50 |
) |
|
|
19 |
|
Net loss attributable to noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(3 |
) |
Share-based compensation |
|
17,138 |
|
|
|
15,234 |
|
|
|
13,399 |
|
|
|
32,372 |
|
|
|
21,803 |
|
Depreciation and amortization |
|
12,567 |
|
|
|
10,504 |
|
|
|
22,042 |
|
|
|
23,071 |
|
|
|
46,565 |
|
Transaction and integration related costs, net |
|
1,473 |
|
|
|
1,845 |
|
|
|
10,952 |
|
|
|
3,318 |
|
|
|
18,603 |
|
Restructuring and other reserves, net |
|
1,541 |
|
|
|
2,269 |
|
|
|
9,761 |
|
|
|
3,810 |
|
|
|
11,821 |
|
Litigation costs, net |
|
57 |
|
|
|
98 |
|
|
|
132 |
|
|
|
155 |
|
|
|
158 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
279,555 |
|
|
|
— |
|
|
|
279,555 |
|
Amortization of inventory step-up |
|
— |
|
|
|
— |
|
|
|
3,314 |
|
|
|
— |
|
|
|
3,314 |
|
Adjusted EBITDA |
$ |
40,544 |
|
|
$ |
33,093 |
|
|
$ |
39,046 |
|
|
$ |
73,637 |
|
|
$ |
69,830 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA margin |
|
18.8 |
% |
|
|
16.1 |
% |
|
|
16.4 |
% |
|
|
17.5 |
% |
|
|
14.7 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240827791060/en/
Sara Kesten
Semtech Corporation
(805) 480-2004
webir@semtech.com
Source: Semtech Corporation
FAQ
What was Semtech's (SMTC) revenue in Q2 FY2025?
How did Semtech's (SMTC) gross margin perform in Q2 FY2025?
What is Semtech's (SMTC) earnings outlook for Q3 FY2025?
How did Semtech's (SMTC) adjusted EBITDA margin change in Q2 FY2025?
