Semtech Announces First Quarter of Fiscal Year 2025 Results

Amounts reported in this press release are preliminary and subject to the finalization of the filing of our unaudited financial results on Form 10-Q for the three months ended April 28, 2024.

About Semtech

Semtech Corporation (Nasdaq: SMTC) is a high-performance semiconductor, IoT systems and cloud connectivity service provider dedicated to delivering high-quality technology solutions that enable a smarter, more connected and sustainable planet. Our global teams are committed to empowering solution architects and application developers to develop breakthrough products for the infrastructure, industrial and consumer markets. To learn more about Semtech technology, visit us at Semtech.com or follow us on LinkedIn or X.

Semtech and the Semtech logo are registered trademarks or service marks of Semtech Corporation or its subsidiaries.

SMTC-F

SEMTECH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended

 

April 28,

2024

 

January 28,

2024

 

April 30,

2023

 

Q125

 

Q424

 

Q124

Net sales

$

206,105

 

 

$

192,948

 

 

$

236,539

 

Cost of sales

 

104,232

 

 

 

99,266

 

 

 

122,738

 

Amortization of acquired technology

 

2,281

 

 

 

2,280

 

 

 

10,855

 

Acquired technology impairments

 

 

 

 

91,792

 

 

 

 

Total cost of sales

 

106,513

 

 

 

193,338

 

 

 

133,593

 

Gross profit

 

99,592

 

 

 

(390

)

 

 

102,946

 

Operating expenses, net:

 

 

 

 

 

Selling, general and administrative

 

52,269

 

 

 

55,198

 

 

 

57,780

 

Product development and engineering

 

41,604

 

 

 

41,505

 

 

 

50,601

 

Intangible amortization

 

307

 

 

 

307

 

 

 

4,882

 

Restructuring

 

2,269

 

 

 

9,167

 

 

 

1,563

 

Intangible impairments

 

 

 

 

39,593

 

 

 

 

Goodwill impairment

 

 

 

 

473,800

 

 

 

 

Total operating expenses, net

 

96,449

 

 

 

619,570

 

 

 

114,826

 

Operating income (loss)

 

3,143

 

 

 

(619,960

)

 

 

(11,880

)

Interest expense

 

(23,229

)

 

 

(22,827

)

 

 

(20,510

)

Interest income

 

542

 

 

 

734

 

 

 

1,069

 

Non-operating income (expense), net

 

400

 

 

 

(2,045

)

 

 

(473

)

Investment impairments and credit loss reserves, net

 

(1,109

)

 

 

(1,679

)

 

 

(33

)

Loss before taxes and equity method income (loss)

 

(20,253

)

 

 

(645,777

)

 

 

(31,827

)

Provision (benefit) for income taxes

 

2,956

 

 

 

(3,345

)

 

 

(2,417

)

Net loss before equity method income (loss)

 

(23,209

)

 

 

(642,432

)

 

 

(29,410

)

Equity method income (loss)

 

50

 

 

 

75

 

 

 

(7

)

Net loss

 

(23,159

)

 

 

(642,357

)

 

 

(29,417

)

Net income (loss) attributable to noncontrolling interest

 

 

 

 

6

 

 

 

(2

)

Net loss attributable to common stockholders

$

(23,159

)

 

$

(642,363

)

 

$

(29,415

)

 

 

 

 

 

 

Loss per share:

 

 

 

 

 

Basic

$

(0.36

)

 

$

(9.98

)

 

$

(0.46

)

Diluted

$

(0.36

)

 

$

(9.98

)

 

$

(0.46

)

 

 

 

 

 

 

Weighted average number of shares used in computing loss per share:

 

 

 

 

 

Basic

 

64,509

 

 

 

64,363

 

 

 

63,924

 

Diluted

 

64,509

 

 

 

64,363

 

 

 

63,924

 

SEMTECH CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

April 28, 2024

 

January 28, 2024

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

126,777

 

 

$

128,585

 

Accounts receivable, net

 

153,921

 

 

 

134,322

 

Inventories

 

148,541

 

 

 

144,992

 

Prepaid taxes

 

10,405

 

 

 

11,969

 

Other current assets

 

99,628

 

 

 

114,329

 

Total current assets

 

539,272

 

 

 

534,197

 

Non-current assets:

 

 

 

Property, plant and equipment, net

 

146,944

 

 

 

153,618

 

Deferred tax assets

 

15,271

 

 

 

18,014

 

Goodwill

 

540,923

 

 

 

541,227

 

Other intangible assets, net

 

35,086

 

 

 

35,566

 

Other assets

 

99,013

 

 

 

91,113

 

Total assets

$

1,376,509

 

 

$

1,373,735

 

 

 

 

 

LIABILITIES AND EQUITY (DEFICIT)

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

64,674

 

 

$

45,051

 

Accrued liabilities

 

160,217

 

 

 

172,105

 

Total current liabilities

 

224,891

 

 

 

217,156

 

Non-current liabilities:

 

 

 

Deferred tax liabilities

 

 

 

 

829

 

Long-term debt

 

1,373,422

 

 

 

1,371,039

 

Other long-term liabilities

 

91,294

 

 

 

91,961

 

Stockholders’ deficit

 

(313,098

)

 

 

(307,434

)

Noncontrolling interest

 

 

 

 

184

 

Total liabilities & equity (deficit)

$

1,376,509

 

 

$

1,373,735

 

SEMTECH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND SUPPLEMENTAL INFORMATION

(in thousands)

(unaudited)

 

 

 

 

Three Months Ended

 

 

 

April 28,

2 024

 

April 30,

2023

Net loss

 

 

$

(23,159

)

 

$

(29,417

)

 

 

 

 

 

 

Net cash used in operating activities

 

 

 

(89

)

 

 

(89,987

)

Net cash provided by (used in) investing activities

 

 

 

1,791

 

 

 

(14,407

)

Net cash (used in) provided by financing activities

 

 

 

(3,198

)

 

 

33,728

 

Effect of foreign exchange rate changes on cash and cash equivalents

 

 

 

(312

)

 

 

(646

)

Net decrease in cash and cash equivalents

 

 

 

(1,808

)

 

 

(71,312

)

Cash and cash equivalents at beginning of period

 

 

 

128,585

 

 

 

235,510

 

Cash and cash equivalents at end of period

 

 

$

126,777

 

 

$

164,198

 

 

 

 

 

 

 

 

Three Months Ended

 

April 28,

2 024

 

January 28,

2 024

 

April 30,

2023

 

Q125

 

Q424

 

Q124

Free cash flow:

 

 

 

 

 

Cash flow from operations

$

(89

)

 

$

13,919

 

 

$

(89,987

)

Net capital expenditures

 

(1,334

)

 

 

(1,712

)

 

 

(13,977

)

Free cash flow

$

(1,423

)

 

$

12,207

 

 

$

(103,964

)

 

 

Three Months Ended

 

April 28,

2 024

January 28,

2 024

April 30,

2 023

 

Q125

 

Q424

 

Q124

Net sales by reportable segment (1) :

 

 

 

 

 

Signal Integrity

$

58,299

 

 

$

42,831

 

 

$

40,891

 

Analog Mixed Signal and Wireless

 

75,344

 

 

 

60,423

 

 

 

59,619

 

IoT Systems and Connectivity

 

72,462

 

 

 

89,694

 

 

 

136,029

 

Total net sales by reportable segment

$

206,105

 

 

$

192,948

 

 

$

236,539

 

 

(1) In the fourth quarter of fiscal year 2024, as a result of organizational restructuring, the wireless business, which was previously included in the IoT Systems operating segment, and the software defined video over ethernet business, which was previously included in the Signal Integrity operating segment, were moved into the Analog Mixed Signal and Wireless operating segment, formerly the Advanced Protection and Sensing operating segment, which also includes the proximity sensing, power and protection businesses. In the first quarter of fiscal year 2025, as a result of organizational restructuring, the Company combined the IoT Systems operating segment and the IoT Connected Services operating segment into the newly formed IoT Systems and Connectivity operating segment. As a result of the reorganization, the Company has three reportable segments. All prior year information in the table above has been revised retrospectively to reflect the changes to the Company's reportable segments.

 

Three Months Ended

 

April 28,

2 024

January 28,

2 024

April 30,

2 023

 

Q125

Q424

Q124

Net sales by end market:

 

 

 

Infrastructure

$

55,977

$

39,387

$

39,000

High-End Consumer

 

34,539

 

 

32,059

 

 

21,594

 

Industrial

 

115,589

 

 

121,502

 

 

175,945

 

Total net sales by end market

$

206,105

 

$

192,948

 

$

236,539

 

SEMTECH CORPORATION

SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended

 

April 28,

2024

 

January 28,

2 024

 

April 30,

2 023

 

Q125

 

Q424

 

Q124

Gross margin (GAAP)

 

48.3

%

 

 

(0.2

)%

 

 

43.5

%

Share-based compensation

 

0.4

%

 

 

0.3

%

 

 

0.2

%

Amortization of acquired technology

 

1.1

%

 

 

1.2

%

 

 

4.6

%

Restructuring and other reserves, net

 

%

 

 

%

 

 

0.2

%

Acquired technology impairments

 

%

 

 

47.6

%

 

 

%

Adjusted gross margin (Non-GAAP)

 

49.8

%

 

 

48.9

%

 

 

48.5

%

 

 

 

 

 

 

 

Three Months Ended

 

April 28,

2024

 

January 28,

2 024

 

April 30,

2 023

 

Q125

 

Q424

 

Q124

Selling, general and administrative (GAAP)

$

52,269

 

 

$

55,198

 

 

$

57,780

 

Share-based compensation

 

(11,391

)

 

 

(8,361

)

 

 

(4,502

)

Transaction and integration related costs, net

 

(1,845

)

 

 

(8,476

)

 

 

(7,068

)

Litigation costs, net

 

(98

)

 

 

(36

)

 

 

(26

)

Adjusted selling, general and administrative (Non-GAAP)

$

38,935

 

 

$

38,325

 

 

$

46,184

 

 

 

 

 

 

 

 

Three Months Ended

 

April 28,

2024

 

January 28,

2 024

 

April 30,

2 023

 

Q125

 

Q424

 

Q124

Product development and engineering (GAAP)

$

41,604

 

 

$

41,505

 

 

$

50,601

 

Share-based compensation

 

(3,161

)

 

 

(2,868

)

 

 

(3,539

)

Transaction and integration related costs, net

 

 

 

 

(432

)

 

 

(534

)

Adjusted product development and engineering (Non-GAAP)

$

38,443

 

 

$

38,205

 

 

$

46,528

 

 

 

Three Months Ended

 

April 28,

2 024

 

January 28,

2 024

 

April 30,

2 023

 

Q125

 

Q424

 

Q124

Operating expenses, net (GAAP)

$

96,449

 

 

$

619,570

 

 

$

114,826

 

Share-based compensation

 

(14,552

)

 

 

(11,229

)

 

 

(8,041

)

Intangible amortization

 

(307

)

 

 

(307

)

 

 

(4,882

)

Transaction and integration related costs, net

 

(1,845

)

 

 

(8,908

)

 

 

(7,602

)

Restructuring and other reserves, net

 

(2,269

)

 

 

(9,167

)

 

 

(1,563

)

Litigation costs, net

 

(98

)

 

 

(36

)

 

 

(26

)

Intangible impairments

 

 

 

 

(39,593

)

 

 

 

Goodwill impairment

 

 

 

 

(473,800

)

 

 

 

Adjusted operating expenses, net (Non-GAAP)

$

77,378

 

 

$

76,530

 

 

$

92,712

 

SEMTECH CORPORATION

SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended

 

April 28,

2 024

 

January 28,

2 024

 

April 30,

2 023

 

Q125

 

Q424

 

Q124

Operating income (loss) (GAAP)

$

3,143

 

 

$

(619,960

)

 

$

(11,880

)

Share-based compensation

 

15,234

 

 

 

11,829

 

 

 

8,404

 

Intangible amortization

 

2,588

 

 

 

2,587

 

 

 

15,737

 

Transaction and integration related costs, net

 

1,845

 

 

 

8,908

 

 

 

7,651

 

Restructuring and other reserves, net

 

2,269

 

 

 

9,167

 

 

 

2,060

 

Litigation costs, net

 

98

 

 

 

36

 

 

 

26

 

Intangible impairments

 

 

 

 

131,385

 

 

 

 

Goodwill impairment

 

 

 

 

473,800

 

 

 

 

Adjusted operating income (Non-GAAP)

$

25,177

 

 

$

17,752

 

 

$

21,998

 

 

 

Three Months Ended

 

April 28,

2 024

 

January 28,

2 024

 

April 30,

2 023

 

Q125

 

Q424

 

Q124

Operating margin (GAAP)

 

1.5

%

 

 

(321.3

)%

 

 

(5.0

)%

Share-based compensation

 

7.4

%

 

 

6.1

%

 

 

3.6

%

Intangible amortization

 

1.3

%

 

 

1.3

%

 

 

6.6

%

Transaction and integration related costs, net

 

0.9

%

 

 

4.6

%

 

 

3.2

%

Restructuring and other reserves, net

 

1.1

%

 

 

4.8

%

 

 

0.9

%

Intangible impairments

 

%

 

 

68.1

%

 

 

%

Goodwill impairment

 

%

 

 

245.6

%

 

 

%

Adjusted operating margin (Non-GAAP)

 

12.2

%

 

 

9.2

%

 

 

9.3

%

 

 

 

 

 

 

 

Three Months Ended

 

April 28,

2 024

 

January 28,

2 024

 

April 30,

2 023

 

Q125

 

Q424

 

Q124

Interest expense, net (GAAP)

$

22,687

 

 

$

22,093

 

 

$

19,441

 

Amortization of deferred financing costs

 

(2,379

)

 

 

(2,380

)

 

 

(1,414

)

Investment income

 

170

 

 

 

201

 

 

 

350

 

Adjusted interest expense, net (Non-GAAP)

$

20,478

 

 

$

19,914

 

 

$

18,377

 

SEMTECH CORPORATION

SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended

 

April 28,

2 024

 

January 28,

2 024

 

April 30,

2 023

 

Q125

 

Q424

 

Q124

GAAP net loss attributable to common stockholders

$

(23,159

)

 

$

(642,363

)

 

$

(29,415

)

Adjustments to GAAP net loss attributable to common stockholders:

 

 

 

 

 

Share-based compensation

 

15,234

 

 

 

11,829

 

 

 

8,404

 

Intangible amortization

 

2,588

 

 

 

2,587

 

 

 

15,737

 

Transaction and integration related costs, net

 

1,845

 

 

 

8,908

 

 

 

7,651

 

Restructuring and other reserves, net

 

2,269

 

 

 

9,167

 

 

 

2,060

 

Litigation costs, net

 

98

 

 

 

36

 

 

 

26

 

Investment losses (gains), reserves and impairments, net

 

662

 

 

 

1,478

 

 

 

(317

)

Amortization of deferred financing costs

 

2,379

 

 

 

2,380

 

 

 

1,414

 

Intangible impairments

 

 

 

 

131,385

 

 

 

 

Goodwill impairment

 

 

 

 

473,800

 

 

 

 

Total Non-GAAP adjustments before taxes

 

25,075

 

 

 

641,570

 

 

 

34,975

 

Associated tax effect

 

2,233

 

 

 

(2,840

)

 

 

(2,795

)

Equity method (income) loss

 

(50

)

 

 

(75

)

 

 

7

 

Total of supplemental information, net of taxes

 

27,258

 

 

 

638,655

 

 

 

32,187

 

Non-GAAP net income (loss) attributable to common stockholders

$

4,099

 

 

$

(3,708

)

 

$

2,772

 

 

 

 

 

 

 

GAAP diluted loss per share

$

(0.36

)

 

$

(9.98

)

 

$

(0.46

)

Adjustments per above

 

0.42

 

 

 

9.92

 

 

 

0.50

 

Non-GAAP diluted earnings (loss) per share

$

0.06

 

 

$

(0.06

)

 

$

0.04

 

 

 

 

 

 

 

Weighted-average number of shares used in computing diluted earnings (loss) per share:

 

 

 

 

 

GAAP

 

64,509

 

 

 

64,363

 

 

 

63,924

 

Non-GAAP

 

67,620

 

 

 

64,363

 

 

 

63,924

 

SEMTECH CORPORATION

SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended

 

April 28,

2 024

 

January 28,

2 024

 

April 30,

2 023

 

Q125

 

Q424

 

Q124

GAAP net loss attributable to common stockholders

$

(23,159

)

 

$

(642,363

)

 

$

(29,415

)

Interest expense

 

23,229

 

 

 

22,827

 

 

 

20,510

 

Interest income

 

(542

)

 

 

(734

)

 

 

(1,069

)

Non-operating (income) expense, net

 

(400

)

 

 

2,045

 

 

 

473

 

Investment impairments and credit loss reserves, net

 

1,109

 

 

 

1,679

 

 

 

33

 

Provision (benefit) for income taxes

 

2,956

 

 

 

(3,345

)

 

 

(2,417

)

Equity method (income) loss

 

(50

)

 

 

(75

)

 

 

7

 

Net income (loss) attributable to noncontrolling interest

 

 

 

 

6

 

 

 

(2

)

Share-based compensation

 

15,234

 

 

 

11,829

 

 

 

8,404

 

Depreciation and amortization

 

10,504

 

 

 

8,864

 

 

 

24,523

 

Transaction and integration related costs, net

 

1,845

 

 

 

8,908

 

 

 

7,651

 

Restructuring and other reserves, net

 

2,269

 

 

 

9,167

 

 

 

2,060

 

Litigation costs, net

 

98

 

 

 

36

 

 

 

26

 

Intangible impairments

 

 

 

 

131,385

 

 

 

 

Goodwill impairment

 

 

 

 

473,800

 

 

 

 

Adjusted EBITDA

$

33,093

 

 

$

24,029

 

 

$

30,784

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

16.1

%

 

 

12.5

%

 

 

13.0

%


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