Semtech(US:SMTC)2025-11-25 21:05Financial Position - As of October 26, 2025, foreign subsidiaries held $123.3 million in cash and cash equivalents, down from $139.1 million at January 26, 2025[214]. - As of October 26, 2025, the company had no amounts outstanding under the Term Loans and $451.6 million available undrawn borrowing capacity[220]. - As of October 26, 2025, the company was in compliance with the financial covenants in its Credit Agreement[222]. - The remaining authorization under the stock repurchase program was $209.4 million, with no shares repurchased in the first nine months of fiscal years 2026 and 2025[238]. Debt and Financing - The company has a total available borrowing capacity of $455.0 million under the Revolving Credit Facility, which matures on January 12, 2028[218][219]. - The company issued $300.0 million and $19.5 million in aggregate principal amount of Convertible Senior Notes due 2027, bearing interest at 1.625% per year[225]. - The company recognized an induced conversion expense of $17.6 million related to the exchange of approximately $219.0 million aggregate principal amount of the 2027 Notes[227]. - On October 26, 2023, the company issued $250.0 million in aggregate principal amount of Convertible Senior Notes due 2028, bearing interest at 4.00% per year[229]. - The company exchanged approximately $188.1 million in aggregate principal amount of 2028 Notes for 10,378,431 shares of common stock[230]. - The company terminated the Convertible Note Hedges and the Warrants corresponding to the number of 2027 Notes exchanged, receiving approximately $24.5 million[228]. - The Company issued $402.5 million in aggregate principal amount of Convertible Senior Notes due 2030, which do not bear any interest and will mature on October 15, 2030[234]. Cash Flow and Expenditures - Net cash provided by operating activities increased to $119.7 million for the first nine months of fiscal year 2026, compared to $24.5 million for the same period in fiscal year 2025, reflecting a 17.8% increase in net sales[241][243]. - Capital expenditures for the first nine months of fiscal year 2026 were $7.4 million, an increase from $5.2 million in the same period of fiscal year 2025[244]. - The Company made prepayments of $181.2 million on Term Loans in the first nine months of fiscal year 2026, with no such prepayments made in the same period of fiscal year 2025[249]. - Net cash used in financing activities was $(94.1) million for the first nine months of fiscal year 2026, compared to $(12.1) million for the same period in fiscal year 2025[241]. - The Company sold investments for proceeds of $1.9 million in the first nine months of fiscal year 2026, down from $2.7 million in the same period of fiscal year 2025[245]. - The Company paid $10.6 million for deferred financing costs in the first nine months of fiscal year 2026, compared to $0.8 million in the same period of fiscal year 2025[250]. - The Company expects future non-operating uses of cash to be for capital expenditures and debt repayment, funded through cash flows from operating activities[216]. - The Company plans to finance capital expenditures and R&D investments through cash generated from operating activities and existing cash balances[235]. Impairment Charges - The Company recorded $42.0 million in pre-tax non-cash goodwill impairment charges for the IoT Connectivity Services reporting unit during the first nine months of fiscal year 2026[253].