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 and nine months ended October 27, 2024. Reported amounts may not foot precisely due to rounding.
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.
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 millions, except per share data) (unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
October 27,
|
|
July 28,
|
|
October 29,
|
||||||
|
Q325 |
|
Q225 |
|
Q324 |
||||||
Net sales |
$ |
236.8 |
|
|
$ |
215.4 |
|
|
$ |
200.9 |
|
Cost of sales |
|
113.6 |
|
|
|
107.6 |
|
|
|
97.9 |
|
Amortization of acquired technology |
|
2.3 |
|
|
|
2.3 |
|
|
|
10.0 |
|
Total cost of sales |
|
115.9 |
|
|
|
109.9 |
|
|
|
107.9 |
|
Gross profit |
|
121.0 |
|
|
|
105.5 |
|
|
|
93.0 |
|
| Operating expenses, net: |
|
|
|
|
|
||||||
| Product development and engineering |
|
42.6 |
|
|
|
40.1 |
|
|
|
46.9 |
|
| Selling, general and administrative |
|
59.8 |
|
|
|
55.8 |
|
|
|
47.7 |
|
| Intangible amortization |
|
0.1 |
|
|
|
0.3 |
|
|
|
4.9 |
|
| Restructuring |
|
0.7 |
|
|
|
1.5 |
|
|
|
3.6 |
|
| Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
2.3 |
|
| Total operating expenses, net |
|
103.2 |
|
|
|
97.7 |
|
|
|
105.3 |
|
| Operating income (loss) |
|
17.8 |
|
|
|
7.8 |
|
|
|
(12.4 |
) |
| Interest expense |
|
(20.8 |
) |
|
|
(28.6 |
) |
|
|
(28.3 |
) |
| Interest income |
|
0.5 |
|
|
|
0.4 |
|
|
|
0.6 |
|
| Loss on extinguishment of debt |
|
— |
|
|
|
(144.7 |
) |
|
|
— |
|
| Non-operating (expense) income, net |
|
(1.1 |
) |
|
|
(1.0 |
) |
|
|
3.5 |
|
| Investment impairments and credit loss reserves, net |
|
— |
|
|
|
— |
|
|
|
(2.0 |
) |
| Loss before taxes |
|
(3.6 |
) |
|
|
(166.1 |
) |
|
|
(38.6 |
) |
| Provision (benefit) for income taxes |
|
4.0 |
|
|
|
4.2 |
|
|
|
(0.3 |
) |
| Net loss attributable to common stockholders |
$ |
(7.6 |
) |
|
$ |
(170.3 |
) |
|
$ |
(38.3 |
) |
|
|
|
|
|
|
|
||||||
| Loss per share: |
|
|
|
|
|
||||||
| Basic |
$ |
(0.10 |
) |
|
$ |
(2.61 |
) |
|
$ |
(0.60 |
) |
| Diluted |
$ |
(0.10 |
) |
|
$ |
(2.61 |
) |
|
$ |
(0.60 |
) |
|
|
|
|
|
|
|
||||||
| Weighted average number of shares used in computing loss per share: |
|
|
|
|
|
||||||
| Basic |
|
75,319 |
|
|
|
65,281 |
|
|
|
64,216 |
|
| Diluted |
|
75,319 |
|
|
|
65,281 |
|
|
|
64,216 |
|
| SEMTECH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) |
|||||||
|
|
October 27,
|
|
January 28,
|
||||
| ASSETS |
|
|
|
||||
| Current assets: |
|
|
|
||||
| Cash and cash equivalents |
$ |
136.5 |
|
|
$ |
128.6 |
|
| Accounts receivable, net |
|
142.5 |
|
|
|
134.3 |
|
| Inventories |
|
163.5 |
|
|
|
145.0 |
|
| Prepaid taxes |
|
7.8 |
|
|
|
12.0 |
|
| Other current assets |
|
107.6 |
|
|
|
114.3 |
|
| Total current assets |
|
557.8 |
|
|
|
534.2 |
|
| Non-current assets: |
|
|
|
||||
| Property, plant and equipment, net |
|
133.2 |
|
|
|
153.6 |
|
| Deferred tax assets |
|
18.7 |
|
|
|
18.0 |
|
| Goodwill |
|
541.3 |
|
|
|
541.2 |
|
| Other intangible assets, net |
|
36.8 |
|
|
|
35.6 |
|
| Other assets |
|
91.2 |
|
|
|
91.1 |
|
| Total assets |
$ |
1,379.0 |
|
|
$ |
1,373.7 |
|
|
|
|
|
|
||||
| LIABILITIES AND EQUITY (DEFICIT) |
|
|
|
||||
| Current liabilities: |
|
|
|
||||
| Accounts payable |
$ |
63.9 |
|
|
$ |
45.1 |
|
| Accrued liabilities |
|
171.6 |
|
|
|
172.1 |
|
| Total current liabilities |
|
235.5 |
|
|
|
217.2 |
|
| Non-current liabilities: |
|
|
|
||||
| Deferred tax liabilities |
|
— |
|
|
|
0.8 |
|
| Long-term debt |
|
1,190.3 |
|
|
|
1,371.0 |
|
| Other long-term liabilities |
|
92.9 |
|
|
|
92.0 |
|
| Stockholders’ deficit |
|
(139.7 |
) |
|
|
(307.4 |
) |
| Noncontrolling interest |
|
— |
|
|
|
0.2 |
|
| Total liabilities & equity (deficit) |
$ |
1,379.0 |
|
|
$ |
1,373.7 |
|
| SEMTECH CORPORATION SUPPLEMENTAL CASH FLOW INFORMATION (in millions) (unaudited) |
|||||||||||
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
||||||||||
|
|
October 27,
|
|
July 28,
|
|
October 29,
|
||||||
|
|
Q325 |
|
Q225 |
|
Q324 |
||||||
| Free cash flow: |
|
|
|
|
|
||||||
| Net cash provided by (used in) operating activities | $ |
29.6 |
|
|
$ |
(5.0 |
) |
|
$ |
(5.8 |
) |
| Net capital expenditures |
|
(0.5 |
) |
|
|
(3.4 |
) |
|
|
(6.6 |
) |
| Free cash flow |
$ |
29.1 |
|
|
$ |
(8.4 |
) |
|
$ |
(12.4 |
) |
| SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (in millions, except per share data) (unaudited) |
|||||||||||
|
|
Three Months Ended |
||||||||||
|
|
October 27,
|
|
July 28,
|
|
October 29,
|
||||||
|
|
Q325 |
|
Q225 |
|
Q324 |
||||||
| Gross margin (GAAP) |
|
51.1 |
% |
|
|
49.0 |
% |
|
|
46.3 |
% |
| Share-based compensation |
|
0.3 |
% |
|
|
0.3 |
% |
|
|
0.3 |
% |
| Amortization of acquired technology |
|
1.0 |
% |
|
|
1.1 |
% |
|
|
5.0 |
% |
| Transaction and integration related costs, net |
|
— |
% |
|
|
— |
% |
|
|
(0.3 |
)% |
| Adjusted gross margin (Non-GAAP) |
|
52.4 |
% |
|
|
50.4 |
% |
|
|
51.3 |
% |
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
||||||||||
|
|
October 27,
|
|
July 28,
|
|
October 29,
|
||||||
|
|
Q325 |
|
Q225 |
|
Q324 |
||||||
| Product development and engineering (GAAP) |
$ |
42.6 |
|
|
$ |
40.1 |
|
|
$ |
46.9 |
|
| Share-based compensation |
|
(3.8 |
) |
|
|
(3.4 |
) |
|
|
(3.0 |
) |
| Transaction and integration related costs, net |
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
| Adjusted product development and engineering (Non-GAAP) |
$ |
38.7 |
|
|
$ |
36.6 |
|
|
$ |
43.9 |
|
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
||||||||||
|
|
October 27,
|
|
July 28,
|
|
October 29,
|
||||||
|
|
Q325 |
|
Q225 |
|
Q324 |
||||||
| Selling, general and administrative (GAAP) |
$ |
59.8 |
|
|
$ |
55.8 |
|
|
$ |
47.7 |
|
| Share-based compensation |
|
(13.8 |
) |
|
|
(13.0 |
) |
|
|
(3.1 |
) |
| Transaction and integration related costs, net |
|
(3.2 |
) |
|
|
(1.5 |
) |
|
|
(5.9 |
) |
| Litigation costs, net |
|
(0.9 |
) |
|
|
(0.1 |
) |
|
|
— |
|
| Adjusted selling, general and administrative (Non-GAAP) |
$ |
41.9 |
|
|
$ |
41.3 |
|
|
$ |
38.6 |
|
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
||||||||||
|
|
October 27,
|
|
July 28,
|
|
October 29,
|
||||||
|
|
Q325 |
|
Q225 |
|
Q324 |
||||||
| Operating expenses, net (GAAP) |
$ |
103.2 |
|
|
$ |
97.7 |
|
|
$ |
105.3 |
|
| Share-based compensation |
|
(17.6 |
) |
|
|
(16.4 |
) |
|
|
(6.0 |
) |
| Intangible amortization |
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
(4.9 |
) |
| Transaction and integration related costs, net |
|
(3.2 |
) |
|
|
(1.5 |
) |
|
|
(6.0 |
) |
| Restructuring and other reserves, net |
|
(0.7 |
) |
|
|
(1.5 |
) |
|
|
(3.6 |
) |
| Litigation costs, net |
|
(0.9 |
) |
|
|
(0.1 |
) |
|
|
— |
|
| Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
(2.3 |
) |
| Adjusted operating expenses, net (Non-GAAP) |
$ |
80.6 |
|
|
$ |
77.9 |
|
|
$ |
82.5 |
|
| SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in millions, except per share data) (unaudited) |
|||||||||
|
|
Three Months Ended |
||||||||
|
|
October 27,
|
|
July 28,
|
|
October 29,
|
||||
|
|
Q325 |
|
Q225 |
|
Q324 |
||||
| Operating income (loss) (GAAP) |
$ |
17.8 |
|
$ |
7.8 |
|
$ |
(12.4 |
) |
| Share-based compensation |
|
18.4 |
|
|
17.1 |
|
|
6.5 |
|
| Intangible amortization |
|
2.4 |
|
|
2.6 |
|
|
14.9 |
|
| Transaction and integration related costs, net |
|
3.2 |
|
|
1.5 |
|
|
5.5 |
|
| Restructuring and other reserves, net |
|
0.7 |
|
|
1.5 |
|
|
3.6 |
|
| Litigation costs, net |
|
0.9 |
|
|
0.1 |
|
|
— |
|
| Goodwill impairment |
|
— |
|
|
— |
|
|
2.3 |
|
| Adjusted operating income (Non-GAAP) |
$ |
43.4 |
|
$ |
30.5 |
|
$ |
20.5 |
|
|
|
Three Months Ended |
|||||||
|
|
October 27,
|
|
July 28,
|
|
October 29,
|
|||
|
|
Q325 |
|
Q225 |
|
Q324 |
|||
| Operating margin (GAAP) |
7.5 |
% |
|
3.6 |
% |
|
(6.2 |
)% |
| Share-based compensation |
7.8 |
% |
|
8.0 |
% |
|
3.3 |
% |
| Intangible amortization |
1.0 |
% |
|
1.2 |
% |
|
7.4 |
% |
| Transaction and integration related costs, net |
1.4 |
% |
|
0.7 |
% |
|
2.8 |
% |
| Restructuring and other reserves, net |
0.3 |
% |
|
0.7 |
% |
|
1.8 |
% |
| Litigation costs, net |
0.3 |
% |
|
— |
% |
|
— |
% |
| Goodwill impairment |
— |
% |
|
— |
% |
|
1.1 |
% |
| Adjusted operating margin (Non-GAAP) |
18.3 |
% |
|
14.2 |
% |
|
10.2 |
% |
|
|
Three Months Ended |
||||||||||
|
|
October 27,
|
|
July 28,
|
|
October 29,
|
||||||
|
|
Q325 |
|
Q225 |
|
Q324 |
||||||
| Interest expense, net (GAAP) |
$ |
20.3 |
|
|
$ |
28.1 |
|
|
$ |
27.7 |
|
| Amortization of deferred financing costs |
|
(2.1 |
) |
|
|
(2.4 |
) |
|
|
(1.8 |
) |
| Write-off of deferred financing costs |
|
— |
|
|
|
(5.5 |
) |
|
|
(3.7 |
) |
| Investment income |
|
0.2 |
|
|
|
0.2 |
|
|
|
0.1 |
|
| Adjusted interest expense, net (Non-GAAP) |
$ |
18.4 |
|
|
$ |
20.5 |
|
|
$ |
22.3 |
|
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
||||||||
|
|
October 27,
|
|
July 28,
|
|
October 29,
|
||||
|
|
Q325 |
|
Q225 |
|
Q324 |
||||
| Loss on extinguishment of debt (GAAP) |
$ |
— |
|
$ |
144.7 |
|
|
$ |
— |
| Loss on extinguishment of debt |
|
— |
|
|
(144.7 |
) |
|
|
— |
| Adjusted loss on extinguishment of debt (Non-GAAP) |
$ |
— |
|
$ |
— |
|
|
$ |
— |
| SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in millions, except per share data) (unaudited) |
|||||||||||
|
|
Three Months Ended |
||||||||||
|
|
October 27,
|
|
July 28,
|
|
October 29,
|
||||||
|
|
Q325 |
|
Q225 |
|
Q324 |
||||||
| GAAP net loss attributable to common stockholders |
$ |
(7.6 |
) |
|
$ |
(170.3 |
) |
|
$ |
(38.3 |
) |
| Adjustments to GAAP net loss attributable to common stockholders: |
|
|
|
|
|
||||||
| Share-based compensation |
|
18.4 |
|
|
|
17.1 |
|
|
|
6.5 |
|
| Intangible amortization |
|
2.4 |
|
|
|
2.6 |
|
|
|
14.9 |
|
| Transaction and integration related costs, net |
|
3.2 |
|
|
|
2.0 |
|
|
|
5.5 |
|
| Restructuring and other reserves, net |
|
0.7 |
|
|
|
1.5 |
|
|
|
3.6 |
|
| Litigation costs, net |
|
0.9 |
|
|
|
0.1 |
|
|
|
— |
|
| Investment (gains) losses, reserves and impairments, net |
|
(0.2 |
) |
|
|
(0.2 |
) |
|
|
1.9 |
|
| Amortization of deferred financing costs |
|
2.1 |
|
|
|
2.4 |
|
|
|
1.8 |
|
| Write-off of deferred financing costs |
|
— |
|
|
|
5.5 |
|
|
|
3.7 |
|
| Loss on extinguishment of debt |
|
— |
|
|
|
144.7 |
|
|
|
— |
|
| Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
2.3 |
|
| Total Non-GAAP adjustments before taxes |
|
27.5 |
|
|
|
175.6 |
|
|
|
40.2 |
|
| Associated tax effect |
|
0.4 |
|
|
|
2.8 |
|
|
|
(0.5 |
) |
| Total of supplemental information, net of taxes |
|
27.9 |
|
|
|
178.4 |
|
|
|
39.7 |
|
| Non-GAAP net income attributable to common stockholders |
$ |
20.3 |
|
|
$ |
8.1 |
|
|
$ |
1.5 |
|
|
|
|
|
|
|
|
||||||
| GAAP diluted loss per share |
$ |
(0.10 |
) |
|
$ |
(2.61 |
) |
|
$ |
(0.60 |
) |
| Adjustments per above |
|
0.36 |
|
|
|
2.72 |
|
|
|
0.62 |
|
| Non-GAAP diluted earnings per share |
$ |
0.26 |
|
|
$ |
0.11 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
||||||
| Weighted-average number of shares used in computing diluted (loss) earnings per share: |
|
|
|
|
|
||||||
| GAAP |
|
75,319 |
|
|
|
65,281 |
|
|
|
64,216 |
|
| Non-GAAP |
|
78,581 |
|
|
|
71,787 |
|
|
|
64,304 |
|
| SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in millions, except per share data) (unaudited) |
|||||||||||
|
|
Three Months Ended |
||||||||||
|
|
October 27,
|
|
July 28,
|
|
October 29,
|
||||||
|
|
Q325 |
|
Q225 |
|
Q324 |
||||||
| GAAP net loss attributable to common stockholders |
$ |
(7.6 |
) |
|
$ |
(170.3 |
) |
|
$ |
(38.3 |
) |
| Interest expense |
|
20.8 |
|
|
|
28.6 |
|
|
|
28.3 |
|
| Interest income |
|
(0.5 |
) |
|
|
(0.4 |
) |
|
|
(0.6 |
) |
| Loss on extinguishment of debt |
|
— |
|
|
|
144.7 |
|
|
|
— |
|
| Non-operating expense (income), net |
|
1.1 |
|
|
|
1.0 |
|
|
|
(3.5 |
) |
| Investment impairments and credit loss reserves, net |
|
— |
|
|
|
— |
|
|
|
2.0 |
|
| Provision (benefit) for income taxes |
|
4.0 |
|
|
|
4.2 |
|
|
|
(0.3 |
) |
| Share-based compensation |
|
18.4 |
|
|
|
17.1 |
|
|
|
6.5 |
|
| Depreciation and amortization |
|
10.1 |
|
|
|
12.6 |
|
|
|
22.5 |
|
| Transaction and integration related costs, net |
|
3.2 |
|
|
|
1.5 |
|
|
|
5.5 |
|
| Restructuring and other reserves, net |
|
0.7 |
|
|
|
1.5 |
|
|
|
3.6 |
|
| Litigation costs, net |
|
0.9 |
|
|
|
0.1 |
|
|
|
— |
|
| Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
2.3 |
|
| Adjusted EBITDA |
$ |
51.1 |
|
|
$ |
40.5 |
|
|
$ |
28.1 |
|
|
|
|
|
|
|
|
||||||
| Adjusted EBITDA margin |
|
21.6 |
% |
|
|
18.8 |
% |
|
|
14.0 |
% |
