- Net sales of $236.8 million, up 10% sequentially
- Record data center net sales of $43.1 million, up 58% sequentially
- GAAP gross margin of 51.1%, up 210 basis points sequentially and Non-GAAP gross margin of 52.4%, up 200 basis points sequentially
- GAAP operating margin of 7.5%, up 390 basis points sequentially and Non-GAAP operating margin of 18.3%, up 410 basis points sequentially
- GAAP diluted loss per share of $0.10 and Non-GAAP diluted earnings per share of $0.26
- Adjusted EBITDA margin of 21.6%, up 280 basis points sequentially
CAMARILLO, Calif. — (BUSINESS WIRE) — November 22, 2024 — Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems and cloud connectivity service provider, today reported unaudited financial results for its third quarter of fiscal year 2025, which ended October 27, 2024.
"We are very pleased to report broad-based growth across each of our end markets, and particularly in data center, where we project AI-driven product demand to be a long-term and transformational growth engine for Semtech. Our results validate that our customers and target markets are moving toward us and highlight the effectiveness of our initiatives to drive market share gain and SAM expansion," said Hong Hou, Semtech's president and chief executive officer. "I believe we have achieved multi-generational roadmap alignment with customers and aspire to become the partner of choice for key technical and product solutions we provide."
"Our reported results and outlook demonstrate leverage in our operating model, targeting healthy net sales growth along with prudent spending," said Mark Lin, Semtech's executive vice president and chief financial officer. "We reported positive operating and free cash flows, and consistent with our previously stated capital allocation priority, we made principal prepayments on our credit facility in both the third and fourth quarters of this fiscal year."
Third Quarter of Fiscal Year 2025 Results
|
GAAP Financial Results |
|
Non-GAAP Financial Results |
||||||||||||||||||||
(in millions, except per share data) |
Q325 |
|
Q225 |
|
Q324 |
|
Q325 |
|
Q225 |
|
Q324 |
||||||||||||
Net sales |
$ |
236.8 |
|
|
$ |
215.4 |
|
|
$ |
200.9 |
|
|
$ |
236.8 |
|
|
$ |
215.4 |
|
|
$ |
200.9 |
|
Gross margin |
|
51.1 |
% |
|
|
49.0 |
% |
|
|
46.3 |
% |
|
|
52.4 |
% |
|
|
50.4 |
% |
|
|
51.3 |
% |
| Operating expenses, net |
$ |
103.2 |
|
|
$ |
97.7 |
|
|
$ |
105.3 |
|
|
$ |
80.6 |
|
|
$ |
77.9 |
|
|
$ |
82.5 |
|
| Operating income (loss) |
$ |
17.8 |
|
|
$ |
7.8 |
|
|
$ |
(12.4 |
) |
|
$ |
43.4 |
|
|
$ |
30.5 |
|
|
$ |
20.5 |
|
| Operating margin |
|
7.5 |
% |
|
|
3.6 |
% |
|
|
(6.2 |
)% |
|
|
18.3 |
% |
|
|
14.2 |
% |
|
|
10.2 |
% |
| Interest expense, net |
$ |
20.3 |
|
|
$ |
28.1 |
|
|
$ |
27.7 |
|
|
$ |
18.4 |
|
|
$ |
20.5 |
|
|
$ |
22.3 |
|
| Net (loss) income attributable to common stockholders |
$ |
(7.6 |
) |
|
$ |
(170.3 |
) |
|
$ |
(38.3 |
) |
|
$ |
20.3 |
|
|
$ |
8.1 |
|
|
$ |
1.5 |
|
| Diluted (loss) earnings per share |
$ |
(0.10 |
) |
|
$ |
(2.61 |
) |
|
$ |
(0.60 |
) |
|
$ |
0.26 |
|
|
$ |
0.11 |
|
|
$ |
0.02 |
|
| Adjusted EBITDA |
|
|
|
|
|
|
$ |
51.1 |
|
|
$ |
40.5 |
|
|
$ |
28.1 |
|
||||||
| Adjusted EBITDA margin |
|
|
|
|
|
|
|
21.6 |
% |
|
|
18.8 |
% |
|
|
14.0 |
% |
||||||
