- Net sales of $200.9 million, above the midpoint of
guidance
- GAAP gross margin of 46.3% and Non-GAAP gross margin, above the
high-end of guidance, of 51.3%
- GAAP diluted loss per share of $0.60 and Non-GAAP diluted
earnings per share, above the high-end of guidance, of $0.02
- Effective October 2, 2023, Mark Lin became Semtech's executive
vice president and chief financial officer
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 2024, which ended October 29, 2023.
"While recognizing ongoing constraints in our hardware business
and effects of elevated channel inventories, we noted stabilization
of end market demand for our semiconductor business," said Paul H.
Pickle, Semtech's president and chief executive officer. "Notably,
end market demand in the third quarter for high-end consumer and
data center applications has grown both sequentially and
year-over-year."
"We continue to optimize our cost structure with non-GAAP
operating expenses and non-GAAP interest expense each forecasted to
sequentially improve in the fourth quarter," said Mark Lin,
Semtech's executive vice president and chief financial officer.
"Our recent change in capital structure further provides us with
flexibility to address near-term challenges from the current
economic environment."
Third Quarter of Fiscal Year 2024 Results
GAAP Financial Results
Non-GAAP Financial
Results
(in millions, except per share data)
Q324
Q224
Q323
Q324
Q224
Q323
Net sales
$
200.9
$
238.4
$
177.6
$
200.9
$
238.4
$
177.6
Gross margin
46.3
%
42.3
%
64.5
%
51.3
%
49.6
%
65.5
%
Operating costs and expenses, net
$
105.3
$
400.8
$
77.2
$
82.5
$
85.7
$
68.0
Operating (loss) income
$
(12.4
)
$
(300.1
)
$
37.4
$
20.5
$
32.4
$
48.3
Operating margin
(6.2
)%
(125.9
)%
21.0
%
10.2
%
13.6
%
27.2
%
Interest expense, net
$
27.7
$
23.5
$
8.2
$
22.3
$
21.2
$
1.0
Diluted (loss) earnings per share
$
(0.60
)
$
(5.97
)
$
0.36
$
0.02
$
0.13
$
0.65
Adjusted EBITDA
$
28.1
$
39.0
$
54.6
To facilitate a more complete understanding of comparable
financial performance between periods, the Company also presents
performance results that exclude certain non-cash items and items
that are not considered reflective of the Company's core results
over time. These non-GAAP financial measures exclude certain items
and are described below under, "Non-GAAP Financial Measures." See
also our non-GAAP financial measures and reconciliations of these
measures to the most comparable GAAP measures set forth in the
tables below under "Supplemental Information: Reconciliation of
GAAP to Non-GAAP Results."
Fourth Quarter of Fiscal Year 2024 Outlook
(in millions, except per share data)
Net sales
$
190.0
+/-
$10.0
Non-GAAP Financial Measures
Gross margin
48.0%
+/-
100 bps
Operating costs and expenses, net
$
74.0
+/-
$2.0
Operating income
$
17.2
+/-
$4.7
Operating margin
9.1%
+/-
200 bps
Interest expense, net
$
21.0
Normalized income tax rate
12%
Diluted (loss) per share
$
(0.05)
+/-
$0.06
Adjusted EBITDA
$
24.7
+/-
$4.7
Diluted share count
64.4
The fourth quarter of fiscal year 2024 outlook incorporates the
Company's current estimates, as well as its expectations regarding
the impact of export restrictions, inflationary pressure and other
macroeconomic conditions. The Company is unable to predict the full
impact such challenges may have on its future results of
operations.
The Company is unable to include a reconciliation of the
forward-looking non-GAAP results to the corresponding GAAP measures
as this is not available without unreasonable efforts due to the
high variability and low visibility with respect to the impact of
transaction, integration and restructuring expenses, share-based
awards, amortization of acquisition-related intangible assets and
other items that are excluded from these non-GAAP measures. The
Company expects the variability of the above charges to have a
potentially significant impact on its GAAP financial results.
Webcast and Conference Call
Semtech will be hosting a conference call today to discuss its
third fiscal quarter 2024 results at 2:00 p.m. Pacific time. The
dial-in number for the call is (877) 407-0312. Please use
conference ID 13736083. An audio webcast and supplemental earnings
materials for the quarter will be available on the Investor
Relations section of Semtech's website at investors.semtech.com
under "News & Events." A replay of the call will be available
through January 3, 2024 at the same website or by calling (877)
660-6853 and entering conference ID 13736083.
Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements
prepared in accordance with GAAP, this release includes a
presentation of select non-GAAP financial measures. The Company's
non-GAAP measures of gross margin, SG&A expense, R&D
expense, operating costs and expenses, net, operating income or
loss, operating margin, interest expense, net, diluted (loss)
earnings per share, and normalized tax rate exclude the following
items, if any, as set forth in the reconciliations in the tables
below under "Supplemental Information: Reconciliation of GAAP to
Non-GAAP Results:"
- Share-based compensation
- Intangible amortization
- Transaction and integration related costs or recoveries
(including costs associated with the acquisition of Sierra
Wireless)
- Restructuring and other reserves, including cumulative other
reserves associated with historical activity including
environmental and pension
- Litigation costs or dispute settlement charges or
recoveries
- Gain on sale of business
- Equity method income or loss
- Investment gains, losses, reserves and impairments, including
interest income from debt investments
- Write-off and amortization of deferred financing costs
- Debt commitment fee
- Goodwill impairment
- Amortization of inventory step-up
Effective as of the third quarter of fiscal year 2024, the
Company's non-GAAP measures have been adjusted to exclude
amortization of deferred financing costs, which had the impact of
decreasing non-GAAP interest expense, net and increasing non-GAAP
net income or loss attributable to common stockholders and non-GAAP
earnings or loss per diluted share. This adjustment was applied
retrospectively and all prior period amounts have been revised to
conform to the current presentation.
To provide additional insight into the Company's fourth quarter
outlook, this release also includes a presentation of
forward-looking non-GAAP financial measures. In the financial
statements provided with this release, the Company also presents
Adjusted EBITDA and free cash flow. Adjusted EBITDA is defined as
net (loss) income plus interest expense, interest income, income
taxes, depreciation and amortization and share-based compensation,
and adjusted to exclude certain expenses, gains and losses that the
Company believes are not indicative of its core results over time.
The Company considers free cash flow, which may be positive or
negative, a non-GAAP financial measure defined as cash flows
provided by (used in) operating activities less net capital
expenditures. Management believes that the presentation of these
non-GAAP measures provides useful information to investors
regarding the Company's financial condition and results of
operations. These non-GAAP financial measures are adjusted to
exclude the items identified above because such items are either
operating expenses that would not otherwise have been incurred by
the Company in the normal course of the Company's business
operations, or are not reflective of the Company's core results
over time. These excluded items may include recurring as well as
non-recurring items, and no inference should be made that all of
these adjustments, charges, costs or expenses are unusual,
infrequent or non-recurring. For example: certain restructuring and
integration-related expenses (which consist of employee termination
costs, facility closure or lease termination costs, and contract
termination costs) may be considered recurring given the Company’s
ongoing efforts to be more cost effective and efficient; certain
acquisition and disposition-related adjustments or expenses may be
deemed recurring given the Company's regular evaluation of
potential transactions and investments; and certain litigation
expenses or dispute settlement charges or gains (which may include
estimated losses for which the Company may have established a
reserve, as well as any actual settlements, judgments, or other
resolutions against, or in favor of, the Company related to
litigation, arbitration, disputes or similar matters, and insurance
recoveries received by the Company related to such matters) may be
viewed as recurring given that the Company may from time to time be
involved in, and may resolve, litigation, arbitration, disputes,
and similar matters.
Notwithstanding that certain adjustments, charges, costs or
expenses may be considered recurring, in order to provide
meaningful comparisons, the Company believes that it is appropriate
to exclude such items because they are not reflective of the
Company's core results and tend to vary based on timing, frequency
and magnitude.
These non-GAAP financial measures are provided to enhance the
user's overall understanding of the Company's comparable financial
performance between periods. In addition, the Company's management
generally excludes the items noted above when managing and
evaluating the performance of the business.
The financial statements provided with this release include
reconciliations of these non-GAAP financial measures to their most
comparable GAAP measures for the second and third quarters of
fiscal year 2024 and the third quarter of fiscal year 2023. The
Company adopted a full-year, normalized tax rate for the
computation of the non-GAAP income tax provision in order to
provide better comparability across the interim reporting periods
by reducing the quarterly variability in non-GAAP tax rates that
can occur throughout the year. In estimating the full-year non-GAAP
normalized tax rate, the Company utilized a full-year financial
projection that considers multiple factors such as changes to the
Company's current operating structure, existing positions in
various tax jurisdictions, the effect of key tax law changes, and
other significant tax matters to the extent they are applicable to
the full fiscal year financial projection. In addition to the
adjustments described above, this normalized tax rate excludes the
impact of share-based awards and the amortization of
acquisition-related intangible assets. For fiscal year 2024, the
Company's projected non-GAAP normalized tax rate is 12% and will be
applied to each quarter of fiscal year 2024. The Company's non-GAAP
normalized tax rate on non-GAAP net income may be adjusted during
the year to account for events or trends that the Company believes
materially impact the original annual non-GAAP normalized tax rate
including, but not limited to, significant changes resulting from
tax legislation, acquisitions, entity structures or operational
changes and other significant events. These additional non-GAAP
financial measures should not be considered substitutes for any
measures derived in accordance with GAAP and may be inconsistent
with similar measures presented by other companies.
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, as amended, based on the
Company's current expectations, estimates and projections about its
operations, industry, financial condition, performance, results of
operations, and liquidity. Forward-looking statements are
statements other than historical information or statements of
current condition and relate to matters such as future financial
performance including the fourth quarter of fiscal year 2024
outlook; the Company's expectations concerning the negative impact
on the Company's results of operations from export restrictions,
inflationary pressure and other macroeconomic conditions; future
operational performance; the anticipated impact of specific items
on future earnings; the Company's expectations regarding its cost
structure optimization; benefits from the Company's change in
capital structure; and the Company's plans, objectives and
expectations. Statements containing words such as "may,"
"believes," "anticipates," "expects," "intends," "plans,"
"projects," "estimates," "should," "will," "designed to,"
"projections," or "business outlook," or other similar expressions
constitute forward-looking statements.
Forward-looking statements involve known and unknown risks and
uncertainties that could cause actual results and events to differ
materially from those projected. Potential factors that could cause
actual results to differ materially from those in the
forward-looking statements include, but are not limited to: the
Company's ability to comply with, or pursue business strategies due
to the covenants under the agreements governing its indebtedness;
the Company's ability to forecast and achieve anticipated net sales
and earnings estimates in light of periodic economic uncertainty;
the inherent risks, costs and uncertainties associated with
integrating Sierra Wireless successfully and risks of not achieving
all or any of the anticipated benefits, or the risk that the
anticipated benefits may not be fully realized or take longer to
realize than expected; the uncertainty surrounding the impact and
duration of supply chain constraints and any associated
disruptions; export restrictions and laws affecting the Company's
trade and investments, and tariffs or the occurrence of trade wars;
worldwide economic and political disruptions, including as a result
of inflation and current geopolitical conflicts; tightening credit
conditions related to the United States banking system concerns;
competitive changes in the marketplace including, but not limited
to, the pace of growth or adoption rates of applicable products or
technologies; downturns in the business cycle; decreased average
selling prices of the Company's products; the Company's reliance on
a limited number of suppliers and subcontractors for components and
materials; changes in projected or anticipated end-user markets;
future responses to and effects of public health crises; and the
Company's ability to forecast its annual non-GAAP normalized tax
rate due to material changes that could occur during the fiscal
year, which could include, but are not limited to, significant
changes resulting from tax legislation, acquisitions, entity
structures or operational changes and other significant events.
Additionally, forward-looking statements should be considered in
conjunction with the cautionary statements contained in the risk
factors disclosed in the Company's filings with the Securities and
Exchange Commission (the "SEC"), including the Company's Annual
Report on Form 10-K for the fiscal year ended January 29, 2023,
filed with the SEC on March 30, 2023, and the Company's Quarterly
Report on Form 10-Q for the quarter ended July 30, 2023, filed with
the SEC on September 13, 2023, as such risk factors may be amended,
supplemented or superseded from time to time by subsequent reports
the Company files with the SEC. In light of the significant risks
and uncertainties inherent in the forward-looking information
included herein that may cause actual performance and results to
differ materially from those predicted, any such forward-looking
information should not be regarded as representations or guarantees
by the Company of future performance or results, or that its
objectives or plans will be achieved or that any of its operating
expectations or financial forecasts will be realized. Reported
results should not be considered an indication of future
performance. Investors are cautioned not to place undue reliance on
any forward-looking information contained herein, which reflect
management's analysis only as of the date hereof. Except as
required by law, the Company assumes no obligation to publicly
release the results of any update or revision to any
forward-looking statements that may be made to reflect new
information, events or circumstances after the date hereof or to
reflect the occurrence of unanticipated or future events, or
otherwise.
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
Nine Months Ended
October 29,
2023
July 30, 2023
October 30,
2022
October 29,
2023
October 30,
2022
Q324
Q224
Q323
Q324
Q323
Net sales
$
200,899
$
238,372
$
177,618
$
675,810
$
589,021
Cost of sales
97,925
127,071
62,049
347,734
207,380
Amortization of acquired technology
10,008
10,573
1,000
31,436
3,096
Total cost of sales
107,933
137,644
63,049
379,170
210,476
Gross profit
92,966
100,728
114,569
296,640
378,545
Operating costs and expenses, net:
Selling, general and administrative
47,663
59,579
40,227
165,022
131,710
Product development and engineering
46,911
47,433
35,056
144,945
114,446
Intangible amortization
4,853
4,871
—
14,606
—
Gain on sale of business
—
—
(327
)
—
(18,313
)
Restructuring
3,646
9,399
2,244
14,608
2,244
Goodwill impairment
2,266
279,555
—
281,821
—
Total operating costs and expenses,
net
105,339
400,837
77,200
621,002
230,087
Operating (loss) income
(12,373
)
(300,109
)
37,369
(324,362
)
148,458
Interest expense
(28,305
)
(24,171
)
(9,009
)
(72,986
)
(11,465
)
Interest income
574
674
839
2,317
1,758
Non-operating income (expense), net
3,542
(1,566
)
(64
)
1,503
(596
)
Investment impairments and credit loss
reserves, net
(1,990
)
(227
)
(29
)
(2,250
)
376
(Loss) income before taxes and equity
method (loss) income
(38,552
)
(325,399
)
29,106
(395,778
)
138,531
(Benefit) provision for income taxes
(311
)
56,592
6,327
53,864
26,415
Net (loss) income before equity method
(loss) income
(38,241
)
(381,991
)
22,779
(449,642
)
112,116
Equity method (loss) income
(11
)
(12
)
(36
)
(30
)
271
Net (loss) income
(38,252
)
(382,003
)
22,743
(449,672
)
112,387
Net loss attributable to noncontrolling
interest
(2
)
(1
)
(3
)
(5
)
(6
)
Net (loss) income attributable to
common stockholders
$
(38,250
)
$
(382,002
)
$
22,746
$
(449,667
)
$
112,393
(Loss) earnings per share:
Basic
$
(0.60
)
$
(5.97
)
$
0.36
$
(7.02
)
$
1.76
Diluted
$
(0.60
)
$
(5.97
)
$
0.36
$
(7.02
)
$
1.76
Weighted average number of shares used in
computing (loss) earnings per share:
Basic
64,216
64,005
63,764
64,048
63,738
Diluted
64,216
64,005
63,855
64,048
64,040
SEMTECH CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
(unaudited)
October 29, 2023
January 29, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
123,820
$
235,510
Accounts receivable, net
156,613
161,695
Inventories
160,586
207,704
Prepaid taxes
10,193
6,243
Other current assets
121,192
111,634
Total current assets
572,404
722,786
Non-current assets:
Property, plant and equipment, net
158,834
169,293
Deferred tax assets
13,597
63,783
Goodwill
1,013,679
1,281,703
Other intangible assets, net
168,230
215,102
Other assets
111,385
116,961
Total assets
$
2,038,129
$
2,569,628
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
55,008
$
100,676
Accrued liabilities
183,989
253,075
Current portion of long-term debt
—
43,104
Total current liabilities
238,997
396,855
Non-current liabilities:
Deferred tax liabilities
4,526
5,065
Long-term debt
1,373,618
1,296,966
Other long-term liabilities
86,549
114,707
Stockholders’ equity
334,261
755,852
Noncontrolling interest
178
183
Total liabilities & equity
$
2,038,129
$
2,569,628
SEMTECH CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS AND SUPPLEMENTAL INFORMATION
(in thousands)
(unaudited)
Nine Months Ended
October 29,
2023
October 30,
2022
Net (loss) income
$
(449,672
)
$
112,387
Net cash (used in) provided by operating
activities
(107,839
)
145,510
Net cash used in investing activities
(26,266
)
(761
)
Net cash provided by financing
activities
24,337
193,451
Effect of foreign exchange rate changes on
cash and cash equivalents
(1,922
)
—
Net (decrease) increase in cash and
cash equivalents
(111,690
)
338,200
Cash and cash equivalents at beginning of
period
235,510
279,601
Cash and cash equivalents at end of
period
$
123,820
$
617,801
Three Months Ended
October 29,
2023
July 30, 2023
October 30,
2022
Q324
Q224
Q323
Free cash flow:
Cash flow from operations
$
(5,847
)
$
(12,005
)
$
18,181
Net capital expenditures
(6,576
)
(6,920
)
(7,060
)
Free cash flow
$
(12,423
)
$
(18,925
)
$
11,121
Three Months Ended
October 29,
2023
July 30, 2023
October 30,
2022
Q324
Q224
Q323
Net sales by reportable
segment:
Signal Integrity
$
48,737
24
%
$
46,507
20
%
$
76,705
43
%
Advanced Protection and Sensing
50,569
25
%
48,521
20
%
51,225
29
%
IoT Systems
77,373
39
%
119,455
50
%
49,688
28
%
IoT Connected Services
24,220
12
%
23,889
10
%
—
—
%
Total net sales by reportable
segment
$
200,899
100
%
$
238,372
100
%
$
177,618
100
%
Three Months Ended
October 29,
2023
July 30, 2023
October 30,
2022
Q324
Q224
Q323
Net sales by end market:
Infrastructure
$
43,191
21
%
$
42,369
18
%
$
70,475
39
%
High-End Consumer
37,553
19
%
34,016
14
%
34,662
20
%
Industrial
120,155
60
%
161,987
68
%
72,481
41
%
Total net sales by end market
$
200,899
100
%
$
238,372
100
%
$
177,618
100
%
SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION:
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(in thousands, except per share
data)
(unaudited)
Three Months Ended
Nine Months Ended
October 29,
2023
July 30, 2023
October 30,
2022
October 29,
2023
October 30,
2022
Q324
Q224
Q323
Q324
Q323
Gross margin (GAAP)
46.3
%
42.3
%
64.5
%
43.9
%
64.3
%
Share-based compensation
0.3
%
0.2
%
0.4
%
0.2
%
0.4
%
Amortization of acquired technology
5.0
%
4.4
%
0.5
%
4.7
%
0.5
%
Transaction and integration related costs,
net
(0.3
)%
1.1
%
—
%
0.3
%
—
%
Restructuring and other reserves, net
—
%
0.2
%
0.1
%
0.1
%
—
%
Amortization of inventory step-up
—
%
1.4
%
—
%
0.5
%
—
%
Adjusted gross margin
(Non-GAAP)
51.3
%
49.6
%
65.5
%
49.7
%
65.2
%
Three Months Ended
Nine Months Ended
October 29,
2023
July 30, 2023
October 30,
2022
October 29,
2023
October 30,
2022
Q324
Q224
Q323
Q324
Q323
Selling, general and administrative
(GAAP)
$
47,663
$
59,579
$
40,227
$
165,022
$
131,710
Share-based compensation
(3,059
)
(9,409
)
1,028
(16,970
)
(13,692
)
Transaction and integration related costs,
net
(5,936
)
(7,271
)
(4,902
)
(20,275
)
(9,528
)
Environmental reserve
—
—
—
—
(500
)
Litigation costs, net
(25
)
(132
)
97
(183
)
(99
)
Adjusted selling, general and
administrative (Non-GAAP)
$
38,643
$
42,767
$
36,450
$
127,594
$
107,891
Three Months Ended
Nine Months Ended
October 29,
2023
July 30, 2023
October 30,
2022
October 29,
2023
October 30,
2022
Q324
Q224
Q323
Q324
Q323
Product development and engineering
(GAAP)
$
46,911
$
47,433
$
35,056
$
144,945
$
114,446
Share-based compensation
(2,972
)
(3,465
)
(3,480
)
(9,976
)
(11,518
)
Transaction and integration related costs,
net
(66
)
(1,016
)
—
(1,616
)
—
Adjusted product development and
engineering (Non-GAAP)
$
43,873
$
42,952
$
31,576
$
133,353
$
102,928
Three Months Ended
Nine Months Ended
October 29,
2023
July 30, 2023
October 30,
2022
October 29,
2023
October 30,
2022
Q324
Q224
Q323
Q324
Q323
Operating cost and expense
(GAAP)
$
105,339
$
400,837
$
77,200
$
621,002
$
230,087
Share-based compensation
(6,031
)
(12,874
)
(2,452
)
(26,946
)
(25,210
)
Intangible amortization
(4,853
)
(4,871
)
—
(14,606
)
—
Transaction and integration related costs,
net
(6,002
)
(8,287
)
(4,902
)
(21,891
)
(9,528
)
Restructuring and other reserves
(3,646
)
(9,399
)
(2,244
)
(14,608
)
(2,744
)
Litigation costs, net
(25
)
(132
)
97
(183
)
99
Gain on sale of business
—
—
327
—
18,313
Goodwill Impairment
(2,266
)
(279,555
)
—
(281,821
)
—
Adjusted operating cost and expense
(Non-GAAP)
$
82,516
$
85,719
$
68,026
$
260,947
$
211,017
SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION:
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)
(in thousands, except per share
data)
(unaudited)
Three Months Ended
Nine Months Ended
October 29,
2023
July 30, 2023
October 30,
2022
October 29,
2023
October 30,
2022
Q324
Q224
Q323
Q324
Q323
Operating (loss) income (GAAP)
$
(12,373
)
$
(300,109
)
$
37,369
$
(324,362
)
$
148,458
Share-based compensation
6,538
13,399
3,085
28,341
27,228
Intangible amortization
14,861
15,444
1,000
46,042
3,096
Transaction and integration related costs,
net
5,507
10,952
4,902
24,110
9,528
Restructuring and other reserves, net
3,646
9,761
2,372
15,467
2,872
Litigation costs, net
25
132
(97
)
183
99
Gain on sale of business
—
—
(327
)
—
(18,313
)
Goodwill impairment
2,266
279,555
—
281,821
—
Amortization of inventory step-up
—
3,314
—
3,314
—
Adjusted operating income
(Non-GAAP)
$
20,470
$
32,448
$
48,304
$
74,916
$
172,968
Three Months Ended
Nine Months Ended
October 29,
2023
July 30, 2023
October 30,
2022
October 29,
2023
October 30,
2022
Q324
Q224
Q323
Q324
Q323
Operating margin (GAAP)
(6.2
)%
(125.9
)%
21.0
%
(48.0
)%
25.2
%
Share-based compensation
3.3
%
5.6
%
1.8
%
4.2
%
4.7
%
Intangible amortization
7.4
%
6.5
%
0.6
%
6.8
%
0.5
%
Transaction and integration related costs,
net
2.8
%
4.6
%
2.8
%
3.6
%
1.6
%
Restructuring and other reserves, net
1.8
%
4.1
%
1.3
%
2.3
%
0.5
%
Litigation costs, net
—
%
0.1
%
(0.1
)%
—
%
—
%
Gain on sale of business
—
%
—
%
(0.2
)%
—
%
(3.1
)%
Goodwill impairment
1.1
%
117.2
%
—
%
41.7
%
—
%
Amortization of inventory step-up
—
%
1.4
%
—
%
0.5
%
—
%
Adjusted operating margin
(Non-GAAP)
10.2
%
13.6
%
27.2
%
11.1
%
29.4
%
Three Months Ended
Nine Months Ended
October 29,
2023
July 30, 2023
October 30,
2022
October 29,
2023
October 30,
2022
Q324
Q224
Q323
Q324
Q323
Interest expense, net (GAAP)
$
27,731
$
23,497
$
8,170
$
70,669
$
9,707
Amortization of deferred financing
costs
(1,837
)
(1,689
)
(279
)
(4,940
)
(520
)
Write-off of deferred financing costs
(3,675
)
(771
)
—
(4,446
)
—
Debt commitment fee
—
—
(7,255
)
—
(7,255
)
Investment income
103
178
335
631
1,055
Adjusted interest expense, net
(Non-GAAP)
$
22,322
$
21,215
$
971
$
61,914
$
2,987
SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION:
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)
(in thousands, except per share
data)
(unaudited)
Three Months Ended
Nine Months Ended
October 29,
2023
July 30, 2023
October 30,
2022
October 29,
2023
October 30,
2022
Q324
Q224
Q323
Q324
Q323
GAAP net (loss) income attributable to
common stockholders
$
(38,250
)
$
(382,002
)
$
22,746
$
(449,667
)
$
112,393
Adjustments to GAAP net (loss) income
attributable to common stockholders:
Share-based compensation
6,538
13,399
3,085
28,341
27,228
Intangible amortization
14,861
15,444
1,000
46,042
3,096
Transaction and integration related costs,
net
5,507
10,952
4,902
24,110
9,528
Restructuring and other reserves, net
3,646
9,761
2,372
15,467
2,872
Litigation costs, net
25
132
(97
)
183
99
Gain on sale of business
—
—
(327
)
—
(18,313
)
Investment losses (gains), reserves and
impairments, net
1,887
49
(306
)
1,619
(1,431
)
Amortization of deferred financing
costs
1,837
1,689
279
4,940
520
Write-off of deferred financing costs
3,675
771
—
4,446
—
Debt commitment fee
—
—
7,255
—
7,255
Goodwill impairment
2,266
279,555
—
281,821
—
Amortization of inventory step-up
—
3,314
—
3,314
—
Total Non-GAAP adjustments before
taxes
40,242
335,066
18,163
410,283
30,854
Associated tax effect
(514
)
55,432
655
52,123
6,089
Equity method loss (income)
11
12
36
30
(271
)
Total of supplemental information, net of
taxes
39,739
390,510
18,854
462,436
36,672
Non-GAAP net income attributable to
common stockholders
$
1,489
$
8,508
$
41,600
$
12,769
$
149,065
GAAP diluted (loss) earnings per
share
$
(0.60
)
$
(5.97
)
$
0.36
$
(7.02
)
$
1.76
Adjustments per above
0.62
6.10
0.29
7.22
0.57
Non-GAAP diluted earnings per
share
$
0.02
$
0.13
$
0.65
$
0.20
$
2.33
Weighted-average number of shares used
in computing diluted (loss) earnings per share:
GAAP
64,216
64,005
63,855
64,048
64,040
Non-GAAP
64,304
64,104
63,855
64,135
64,040
SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION:
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)
(in thousands, except per share
data)
(unaudited)
Three Months Ended
Nine Months Ended
October 29,
2023
July 30, 2023
October 30,
2022
October 29,
2023
October 30,
2022
Q324
Q224
Q323
Q324
Q323
GAAP net (loss) income attributable to
common stockholders
$
(38,250
)
$
(382,002
)
$
22,746
$
(449,667
)
$
112,393
Interest expense
28,305
24,171
9,009
72,986
11,465
Interest income
(574
)
(674
)
(839
)
(2,317
)
(1,758
)
Non-operating (expense) income, net
(3,542
)
1,566
64
(1,503
)
596
Investment impairments and credit loss
reserves, net
1,990
227
29
2,250
(376
)
Provision (benefit) for income taxes
(311
)
56,592
6,327
53,864
26,415
Equity in net gains (losses) of equity
method investments
11
12
36
30
(271
)
Net loss attributable to noncontrolling
interest
(2
)
(1
)
(3
)
(5
)
(6
)
Share-based compensation
6,538
13,399
3,085
28,341
27,228
Depreciation and amortization
22,539
22,042
7,323
69,104
22,321
Transaction and integration related costs,
net
5,507
10,952
4,902
24,110
9,528
Restructuring and other reserves, net
3,646
9,761
2,372
15,467
2,872
Litigation costs, net
25
132
(97
)
183
99
Gain on sale of business
—
—
(327
)
—
(18,313
)
Goodwill impairment
2,266
279,555
—
281,821
—
Amortization of inventory step-up
—
3,314
—
3,314
—
Adjusted EBITDA
$
28,148
$
39,046
$
54,627
$
97,978
$
192,193
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231206128277/en/
Sara Kesten Semtech Corporation (805) 480-2004
webir@semtech.com
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