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 |
% |
