Semtech(US:SMTC)2024-06-05 20:58Financial 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].