Semtech Corporation's (SMTC) first-quarter fiscal 2025 non-GAAP earnings of 6 cents per share beat the Zacks Consensus Estimate of the break-even point. The bottom line increased 50% year over year. Net sales of $206.1 million surpassed the Zacks Consensus Estimate of $200.2 million. The figure decreased 12.9% from the prior-year quarter. Nevertheless, growing momentum in the Signal Integrity, and Analog Mixed Signal & Wireless product lines remained a plus. Improving performances in the infrastructure and ...

Shares of Semtech Co. NASDAQ: SMTC had been stuck in limbo until recently. For the past two years, the stock struggled to break out of its $20 to $30 price channel. That was until the past quarterly earnings figures came on the scene, bringing Semtech shareholders a much-needed breakout to what is now 89% of the stock's 52-week high price. Semtech Today +1.30 (+3.48%) $42.61 While other technology stocks, particularly semiconductors, like Nvidia Co. NASDAQ: NVDA, got the lion's share of market attention dur ...

Financial Data and Key Metrics Changes - The company recorded net sales of $206.1 million for Q1 FY '25, representing a 7% sequential increase and exceeding the high end of guidance [31] - Gross margin improved to 49.8%, up 90 basis points sequentially and 130 basis points year-over-year, attributed to favorable product mix and cost control [32] - Operating income was $25.2 million with an operating margin of 12.2%, reflecting a sequential increase of 300 basis points and a year-over-year increase of 290 basis points [34] - Free cash flow for the first quarter was a use of cash amounting to $1.4 million, influenced by working capital changes [38] Business Line Data and Key Metrics Changes - Infrastructure net sales reached $56 million, a sequential increase of 42% and up 44% year-over-year [9] - High-End Consumer net sales were $34.5 million, an 8% sequential increase and a 60% year-over-year increase [17] - Industrial net sales were $115.6 million, down 5% sequentially, with IoT systems business net sales down 26% sequentially and 57% year-over-year [22] - Connected services businesses recorded net sales of $24.1 million, effectively flat quarter-over-quarter [25] Market Data and Key Metrics Changes - In the Infrastructure market, data center applications saw net sales of $21.2 million, up 20% sequentially and 61% year-over-year [10] - Passive optical network products net sales were $27.2 million, an 88% sequential increase and a 64% year-over-year increase [15] - The company noted strong demand for its LoRa-enabled solutions, with net sales of RF industrial products increasing 76% sequentially and 19% year-over-year [25] Company Strategy and Development Direction - The company is focused on reducing overall debt and evaluating capital structure alternatives, including potential asset sales [52][53] - The management emphasized the importance of AI in driving growth, particularly in data center applications and active copper cables [11][12] - The company is committed to maintaining cost control while supporting customer projects, with operating expenses down 17% year-over-year [33] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in the Industrial segment, with bookings activity indicating a potential recovery in the second half of FY '25 [22] - The company expects net sales for Q2 FY '25 to be around $212 million, with growth anticipated in the Infrastructure end market [45] - Management highlighted that the telecom segment remains muted, with no immediate visibility for improvement [123] Other Important Information - The company ended the first quarter with a cash balance of $126.8 million, with inventories down 30% year-over-year [37] - The company expects gross margin to be around 50% for the next quarter, with operating expenses projected at $77.5 million [39] Q&A Session Summary Question: Clarification on active copper cable opportunity - Management clarified that they are involved in both vertical and horizontal applications, with ongoing qualifications and purchase orders from cable manufacturers [48][58] Question: Expectations for operational expenses - Management indicated that operational expenses are at a stable level and expected to grow at half the rate of sales moving forward [60] Question: Revenue expectations for active copper cables in fiscal '26 - Management estimated a reasonable expectation of a $100 million opportunity for active copper cables, with potential for higher growth depending on shipping configurations [66][99] Question: Long-term growth rate for LoRa - Management expects double-digit growth for the LoRa opportunity, supported by new protocols and market expansion [112] Question: Outlook for PON and its drivers - Management noted that PON is experiencing a recovery, particularly driven by infrastructure upgrades in China, with expectations for continued growth [108][110]

Semtech (SMTC) reported $206.11 million in revenue for the quarter ended April 2024, representing a year- over-year decline of 12.9%. EPS of $0.06 for the same period compares to $0.02 a year ago. ...

| --- | --- | --- | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------|-------|--------------------------------------|-------|-----------------------------------------|-------|----------------------------------| | GAAP net loss attributable to common stockholders | $ | April 28, 2024 \nQ125 \n(23,159) | $ | January 28, 2024 \nQ424 \n(642,363) | $ | April 30, 2023 \nQ124 \n(29,415) | | Adjustments to GAAP net loss attributable to common stockhol ...

Financial Performance - Net sales for the first quarter of fiscal year 2025 were $206.1 million, a decrease of 12.9% compared to $236.5 million in the first quarter of fiscal year 2024[177]. - The Signal Integrity segment reported net sales of $58.3 million, up from $40.9 million in the prior year, representing a 42.5% increase[165]. - The Analog Mixed Signal and Wireless segment generated $75.3 million in net sales, compared to $59.6 million in the same period last year, reflecting a 26.4% increase[165]. - The IoT Systems and Connectivity segment saw a decline in net sales to $72.5 million from $136.0 million, a decrease of 46.6% year-over-year[165]. - Industrial end market net sales decreased by 34% to $115.6 million, primarily due to lower module and router sales[177]. - The infrastructure end market saw a 44% increase in net sales to $56.0 million, driven by strong demand in PON and data center sales[177]. - Net sales for the first quarter of fiscal year 2025 were $206.1 million, a decrease of 13% compared to $236.5 million in the first quarter of fiscal year 2024[178]. - Signal Integrity segment net sales increased by 43% to $58.3 million, driven by a $10.6 million increase in PON sales and an $8.0 million increase in data center sales[178]. - Analog Mixed Signal and Wireless segment net sales rose by 26% to $75.3 million, primarily due to a $9.9 million increase in TVS product sales[178]. - IoT Systems and Connectivity segment net sales decreased by 47% to $72.5 million, mainly due to a $47.4 million decrease in module sales and a $16.0 million decrease in router sales[178]. Profitability and Margins - Gross profit margin improved to 48.3% in the first quarter of fiscal year 2025, compared to 43.5% in the same quarter of fiscal year 2024[175]. - Operating income for the first quarter of fiscal year 2025 was 1.5%, a significant improvement from a loss of 5.0% in the prior year[175]. - Net loss attributable to common stockholders was 11.2% for the first quarter of fiscal year 2025, compared to 12.4% in the same period last year[175]. - Gross profit for the first quarter of fiscal year 2025 was $99.6 million, down from $102.9 million in the same period last year, reflecting a decrease of $3.4 million[179]. - Gross margin improved to 48.3% in the first quarter of fiscal year 2025, compared to 43.5% in the first quarter of fiscal year 2024[180]. Expenses and Cash Flow - Total operating expenses decreased by 16% to $96.4 million in the first quarter of fiscal year 2025, down from $114.8 million in the prior year[181]. - Interest expense increased to $23.2 million in the first quarter of fiscal year 2025, up from $20.5 million in the same period last year, primarily due to higher interest rates[186]. - Net cash used in operating activities for the three months ended April 28, 2024, was $(89) thousand, compared to $(89,987) thousand for the same period in fiscal year 2024[217]. - The company did not borrow or make payments on its Revolving Credit Facility in the first three months of fiscal year 2025, while it borrowed $40.0 million in the same period of fiscal year 2024[224]. Capital Expenditures and Financing - Capital expenditures for the first three months of fiscal year 2025 were $1.3 million, significantly lower than $14.0 million for the same period in fiscal year 2024[221]. - The company plans to finance capital expenditures and R&D through cash generated from operating activities and existing cash balances[212]. - The company expects future non-operating uses of cash to be for capital expenditures and debt repayment, funded through cash flows from operating activities[199]. - The company issued $300.0 million and $19.5 million in Convertible Senior Notes due 2027, bearing interest at 1.625% per year, with a maturity date of November 1, 2027[207]. - The company issued $250.0 million in Convertible Senior Notes due 2028, bearing interest at 4.00% per year, with a maturity date of November 1, 2028[209]. Compliance and Share Repurchase - As of April 28, 2024, the company was in compliance with the financial covenants in its Credit Agreement[205]. - The company did not repurchase any shares under its stock repurchase program in the first three months of fiscal year 2025 or fiscal year 2024, with remaining authorization of $209.4 million as of April 28, 2024[214]. - As of April 28, 2024, the company had $126.8 million in cash and cash equivalents and $282.2 million of available undrawn borrowing capacity[193].

Financial Performance - Net sales for the first quarter of fiscal year 2025 were $206.1 million, exceeding the high-end of the guidance range[3] - GAAP gross margin was 48.3%, while Non-GAAP gross margin was 49.8%, both above the midpoint of guidance[3] - GAAP net loss attributable to common stockholders was $23.2 million, while Non-GAAP net income was $4.1 million[3] - Adjusted EBITDA for the first quarter was $33.1 million, surpassing the high-end of the guidance range[3] - Net sales for the first quarter of fiscal year 2025 were $206.1 million, a decrease of 12.9% compared to $236.5 million in the same period last year[24] - The company reported a net loss of $23.2 million, or $0.36 per share, compared to a net loss of $29.4 million, or $0.46 per share, in the same quarter last year[24] - Operating income for the first quarter was $3.1 million, a significant improvement from an operating loss of $619.9 million in the previous quarter[24] - GAAP net loss attributable to common stockholders was $23.159 million in Q1 2024, significantly reduced from a loss of $642.363 million in Q4 2024[38] - Non-GAAP net income attributable to common stockholders was $4.099 million in Q1 2024, compared to a loss of $3.708 million in Q4 2024[38] Expense Management - GAAP operating expenses decreased by 16% year-over-year to $96.4 million, and Non-GAAP operating expenses fell by 17% year-over-year to $77.4 million[3] - The company continues to focus on cost management, with non-GAAP operating expenses down 17% year-over-year[4] - Selling, general and administrative expenses (GAAP) decreased to $52.269 million in Q1 2024 from $57.780 million in Q1 2023[32] - Product development and engineering expenses (GAAP) were $41.604 million in Q1 2024, down from $50.601 million in Q1 2023[32] Future Projections - The company expects net sales for the second quarter of fiscal year 2025 to be approximately $212.0 million, with a variance of +/- $5.0 million[5] - Projected Non-GAAP gross margin for the second quarter is 50.0%, with a variance of +/- 50 basis points[5] - The company anticipates Non-GAAP diluted earnings per share of $0.09 for the second quarter, with a variance of +/- $0.03[5] - Adjusted EBITDA for the second quarter is projected to be $36.3 million, with a variance of +/- $2.6 million[5] Segment Performance - The Signal Integrity segment generated $58.3 million in net sales, up 36.0% from $42.8 million in the previous quarter[30] - The Analog Mixed Signal and Wireless segment reported net sales of $75.3 million, an increase from $60.4 million in the previous quarter[30] - The company has restructured its reportable segments, now consisting of Signal Integrity, Analog Mixed Signal and Wireless, and IoT Systems and Connectivity[30] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $126.8 million, a slight decrease from $128.6 million at the beginning of the period[30] - Total current assets increased to $539.3 million from $534.2 million in the previous quarter[26] - The company reported a free cash flow of $(1.4) million for the first quarter, compared to $(104.0) million in the same quarter last year[30] Gross Margin Analysis - Gross profit for the first quarter was $99.6 million, resulting in a gross margin of 48.3%, compared to a gross margin of 43.5% in the previous quarter[24] - Gross margin (GAAP) for Q1 2024 was 48.3%, an increase from 43.5% in Q1 2023[32] - Adjusted gross margin (Non-GAAP) improved to 49.8% in Q1 2024 from 48.5% in Q1 2023[32] Interest Expense - Interest expense (GAAP) increased to $22.687 million in Q1 2024 from $19.441 million in Q1 2023[35]

Semtech Corp. (NASDAQ:SMTC) Q4 2023 Results Conference Call March 28, 2024 5:00 PM ET Company Participants Paul Pickle - President, CEO Mark Lin - EVP, CFO Conference Call Participants Tristan Gerra - Baird Quinn Bolton - Needham & Company Cody Acree - Benchmark Company Tore Svanberg - Stifel Craig Ellis - B. Riley Securities Anthony Stoss - Craig-Hallum Capital Group Operator Good day and thank you for standing by. Welcome to Semtech Corporation's Fourth Quarter and Fiscal Year 2024 Earnings Conference Cal ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________ FORM 10-K ____________________________________ (Mark One) ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended January 28, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 001-06395 SEMTECH CORPORATION (Exact name of registrant as speci ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: Sara Kesten Semtech Corporation (805) 480-2004 webir@semtech.com Semtech Announces Fourth Quarter and Fiscal Year 2024 Results Fourth Quarter of Fiscal Year 2024 Fiscal Year 2024 GAAP gross margin and diluted loss per share are reflective of goodwill and intangible asset impairment charges. CAMARILLO, Calif., March 28, 2024—Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems and cloud connectivity service provider, today reported unau ...