Semtech(US:SMTC)2024-06-05 20:18Financial 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]