Semtech Corporation (Nasdaq: SMTC), a leading global supplier of
high-performance analog and mixed-signal semiconductors and
advanced algorithms, today reported unaudited financial results for
its third quarter of fiscal year 2023, which ended October 30,
2022.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20221130005943/en/
(Graphic: Business Wire)
Highlights for the Third Quarter of Fiscal Year 2023
- Net sales of $177.6 million, a decrease of 15.1% sequentially
and 8.9% year-over-year
- Record GAAP gross margin of 65.1% and record Non-GAAP gross
margin of 65.5%
- GAAP and non-GAAP diluted earnings per share of $0.36 and
$0.65, respectively
- Tri-Edge™ selected by a major North American Hyperscale Data
Center Provider in a new, high volume, multi-year program
- Amazon Web Services, Inc. ("AWS") integrates LoRa Cloud™
Geolocation capabilities into the AWS IoT Core for asset tracking
solutions on AWS
- Cooperating with the U.S. Department of Justice (the "DOJ") on
the second request in connection with the proposed acquisition of
Sierra Wireless, Inc. ("Sierra Wireless") and working to close as
quickly as possible
- Issued $319.5 million principal amount of 1.625% Convertible
Senior Notes due 2027 in a private placement
Results on a GAAP basis for the Third Fiscal Quarter
2023
- Net sales were $177.6 million
- GAAP Gross margin was 65.1%
- GAAP SG&A expense was $42.4 million
- GAAP R&D expense was $35.2 million
- GAAP Operating margin was 21.0%
- GAAP Interest expense was $9.0 million
- GAAP Net income attributable to common stockholders was $22.7
million or $0.36 diluted earnings per share
To facilitate a 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.”
Results on a Non-GAAP basis for the Third Fiscal Quarter
2023 (see the list of non-GAAP financial measures and the
reconciliation 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")
- Non-GAAP Gross margin was 65.5%
- Non-GAAP SG&A expense was $36.5 million
- Non-GAAP R&D expense was $31.6 million
- Non-GAAP Operating margin was 27.2%
- Non-GAAP Interest expense was $1.8 million
- Non-GAAP Net income attributable to common stockholders was
$41.4 million or $0.65 diluted earnings per share
"Despite strong macro related headwinds negatively impacting our
second half demand, adjusting for the divestiture of our Hi-Rel
business, we expect FY2023 to deliver another record revenue year
for Semtech. We are starting to see signs of demand stabilization
and are very encouraged by many exciting new design wins across all
of our product groups and target markets," said Mohan Maheswaran,
Semtech’s President and Chief Executive Officer. "We are focused on
continuing to deliver innovative and differentiated technology
platforms that enable our customers to build higher performance,
more efficient and more sustainable systems. As we prepare for
FY2024 and the closing of our proposed acquisition of Sierra
Wireless, we remain excited by the potential future opportunities
of the combined company and anticipate strong long-term profitable
growth in the years ahead."
As previously announced, on October 17, 2022, the Company and
Sierra Wireless each received a request for additional information
and documentary material (commonly known as a “second request”)
from the DOJ in connection with the Company’s proposed acquisition
of Sierra Wireless. The Company and Sierra Wireless continue to
believe the transaction will benefit customers of both companies
and are cooperating fully with the DOJ in order to facilitate its
review and to close the transaction within the timeframe initially
provided under the arrangement agreement, which (inclusive of
extensions) ends no later than March 3, 2023, unless extended
further by mutual agreement of the parties. Until close, the
Company and Sierra Wireless will remain separate independent
companies.
Fourth Fiscal Quarter 2023 Outlook
Both the GAAP and non-GAAP fourth fiscal quarter 2023 outlook
below take into account the impact of transaction costs associated
with the proposed acquisition of Sierra Wireless, but not the
results of Sierra Wireless, and, based on the Company's current
estimates, inflationary pressure and the ongoing effect of the
COVID-19 pandemic on global economic conditions and on the
Company's business operations, net sales and operating results, as
well as export restrictions. The Company is unable to predict the
full impact such challenges may have on its future results of
operations.
GAAP Fourth Fiscal Quarter 2023 Outlook
- Net sales are expected to be in the range of $145.0 million to
$155.0 million
- GAAP Gross margin is expected to be in the range of 63.6% to
64.6%
- GAAP SG&A expense is expected to be in the range of $41.4
million to $42.4 million
- GAAP R&D expense is expected to be in the range of $33.0
million to $34.0 million
- GAAP Intangible amortization expense is expected to be
approximately $0.9 million
- GAAP Interest and other expense, net is expected to be
approximately $0.8 million
- GAAP Effective tax rate is expected to be in the range of 20%
to 22%
- GAAP Diluted earnings per share is expected to be in the range
of $0.20 to $0.27
- Fully-diluted share count is expected to be approximately 64.0
million shares
- Share-based compensation is expected to be approximately $11.0
million, categorized as follows: $0.7 million cost of sales, $6.8
million SG&A, and $3.5 million R&D
- Capital expenditures are expected to be approximately $11.2
million
- Depreciation expense is expected to be approximately $6.3
million
Non-GAAP Fourth Fiscal Quarter 2023 Outlook (see the list
of non-GAAP financial measures and the reconciliation of these
measures to the most comparable GAAP measures set forth in the
tables below under "Reconciliation of GAAP to Non-GAAP
Outlook")
- Non-GAAP Gross margin is expected to be in the range of 64.0%
to 65.0%
- Non-GAAP SG&A expense is expected to be in the range of
$30.5 million to $31.5 million
- Non-GAAP R&D expense is expected to be in the range of
$29.5 million to $30.5 million
- Non-GAAP normalized tax rate for fiscal year 2023 is expected
to be approximately 12%
- Non-GAAP Diluted earnings per share is expected to be in the
range of $0.44 to $0.52
Webcast and Conference Call
Semtech will be hosting a conference call today to discuss its
third fiscal quarter 2023 results at 2:00 p.m. Pacific time. The
dial-in number for the call is (877) 407-0312. Please use
conference ID 13725338. An audio webcast will be available on
Semtech’s website at www.semtech.com
in the “Investor Relations” section under “Investor News.” A replay
of the call will be available through December 28, 2022 at the same
website or by calling (877) 660-6853 and entering conference ID
13725338.
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 margin, interest expense, net income
attributable to common stockholders, diluted earnings per share and
normalized tax rate exclude the following items, if any:
- Share-based compensation
- Amortization of purchased intangibles, impairments and credit
loss reserves
- Restructuring and transaction costs (including costs associated
with the proposed acquisition of Sierra Wireless), and other
acquisition or disposition-related gains or losses
- Litigation expenses or dispute settlement charges or gains
- Cumulative other reserves associated with historical activity
including environmental and pension
- Equity in net gains or losses of equity method investments
- Debt commitment fees expensed
- Loss on early extinguishment of debt
- Interest income from debt investments
- Changes in the fair value of contingent earn-out
obligations
To provide additional insight into the Company's fourth quarter
outlook, this release also includes a presentation of
forward-looking non-GAAP financial measures. 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 2023 and
the third quarter of fiscal year 2022, along with a reconciliation
of forward-looking non-GAAP measures (other than the non-GAAP
normalized tax rate) to their most comparable GAAP measures for the
fourth quarter of fiscal year 2023. Beginning with fiscal year
2022, 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 2023, the
Company’s projected non-GAAP normalized tax rate is 12% and will be
applied to each quarter of fiscal year 2023. 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. The Company is unable to
include a reconciliation of the forward-looking measure of the
non-GAAP normalized tax rate to the corresponding GAAP measure as
this is not available without unreasonable efforts due to the high
variability and low visibility with respect to the impact of
share-based awards and the amortization of acquisition-related
intangible assets that are excluded from this non-GAAP measure. The
Company expects the variability of the above charges to have a
potentially significant impact on its GAAP financial results. 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 2023
outlook and our expectations for growth and strong financial
results in fiscal year 2023; the impact of costs associated with
the proposed acquisition of Sierra Wireless; the potential for a
negative impact associated with the current supply chain
constraints and any associated disruptions; the potential for a
negative impact of the COVID-19 pandemic on global economic
conditions and on the Company's business operations, net sales and
operating results; the Company’s expectations concerning the
negative impact on the Company’s results of operations from its
inability to ship certain products and provide certain support
services due to the export restrictions; future operational
performance; the anticipated impact of specific items on future
earnings; 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
failure to obtain regulatory approvals required for the closing of
the proposed acquisition; the failure to satisfy the conditions to
the closing of the proposed acquisition; potential legal
proceedings relating to the proposed acquisition and the outcome of
any such legal proceeding; the inherent risks, costs and
uncertainties associated with integrating the businesses
successfully and risks of not achieving all or any of the
anticipated benefits of the proposed acquisition, or the risk that
the anticipated benefits of the proposed acquisition may not be
fully realized or take longer to realize than expected; the
occurrence of any event, change or other circumstances that could
give rise to the termination of the arrangement agreement with
Sierra Wireless; the risk that the proposed acquisition will not be
consummated within the expected time period, or at all; future
responses to and effects of the ongoing COVID-19 pandemic or other
similar health crises; 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 the current conflict between Russia
and Ukraine; 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; 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; and the Company's ability to forecast
and achieve anticipated net sales and earnings estimates in light
of periodic economic uncertainty, including impacts arising from
Asian, European and global economic dynamics. 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 30, 2022, as such risk
factors may be updated, amended 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 is a leading global supplier of high
performance analog, mixed-signal semiconductors and advanced
algorithms for infrastructure, high-end consumer, and industrial
end markets. Products are designed to benefit the engineering
community as well as the global community. The Company is dedicated
to reducing the impact it, and its products, have on the
environment. Internal green programs seek to reduce waste through
material and manufacturing control, use of green technology and
designing for resource reduction. Publicly traded since 1967,
Semtech is listed on the Nasdaq Global Select Market under the
symbol SMTC. For more information, visit http://www.semtech.com.
Semtech, the Semtech logo and LoRa are registered trademarks or
service marks, and LoRa Cloud and Tri-Edge are trademarks or
service marks, of Semtech Corporation or its affiliates.
SMTC-F
SEMTECH CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(in thousands, except per share
data)
(unaudited)
Three Months Ended
Nine Months Ended
October 30,
2022
July 31, 2022
October 31,
2021
October 30,
2022
October 31,
2021
Q323
Q223
Q322
Q323
Q322
Net sales
$
177,618
$
209,254
$
194,932
$
589,021
$
550,308
Cost of sales
62,049
73,435
71,243
207,380
206,326
Gross profit
115,569
135,819
123,689
381,641
343,982
Operating costs and expenses, net:
Selling, general and administrative
42,366
48,119
47,621
133,849
128,402
Product development and engineering
35,161
40,601
37,346
114,551
109,633
Intangible amortization
1,000
1,048
1,298
3,096
3,894
Gain on sale of business
(327
)
(17,986
)
—
(18,313
)
—
Total operating costs and expenses,
net
78,200
71,782
86,265
233,183
241,929
Operating income
37,369
64,037
37,424
148,458
102,053
Interest expense
(9,009
)
(1,259
)
(1,233
)
(11,465
)
(3,617
)
Non-operating income, net
775
125
105
1,162
412
Investment impairments and credit loss
reserves, net
(29
)
429
(216
)
376
(930
)
Income before taxes and equity in net
(losses) gains of equity method investments
29,106
63,332
36,080
138,531
97,918
Provision for taxes
6,327
12,019
3,018
26,415
9,179
Net income before equity in net
(losses) gains of equity method investments
22,779
51,313
33,062
112,116
88,739
Equity in net (losses) gains of equity
method investments
(36
)
283
1,363
271
2,115
Net income
22,743
51,596
34,425
112,387
90,854
Net loss attributable to noncontrolling
interest
(3
)
(2
)
(2
)
(6
)
(6
)
Net income attributable to common
stockholders
$
22,746
$
51,598
$
34,427
$
112,393
$
90,860
Earnings per share:
Basic
$
0.36
$
0.81
$
0.53
$
1.76
$
1.40
Diluted
$
0.36
$
0.81
$
0.53
$
1.76
$
1.38
Weighted average number of shares used in
computing earnings per share:
Basic
63,764
63,500
64,546
63,738
64,786
Diluted
63,855
63,977
65,299
64,040
65,664
SEMTECH CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
(unaudited)
October 30, 2022
January 30, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
617,801
$
279,601
Accounts receivable, net
80,539
71,507
Inventories
111,083
114,003
Prepaid taxes
2,758
5,983
Other current assets
23,051
31,201
Total current assets
835,232
502,295
Non-current assets:
Property, plant and equipment, net
135,571
134,940
Deferred tax assets
24,898
27,803
Goodwill
350,306
351,141
Other intangible assets, net
3,708
6,804
Other assets
117,136
107,928
Total assets
$
1,466,851
$
1,130,911
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
45,072
$
50,695
Accrued liabilities
95,021
77,704
Total current liabilities
140,093
128,399
Non-current liabilities:
Deferred tax liabilities
1,075
1,132
Long term debt
455,113
171,676
Other long-term liabilities
77,973
91,929
Stockholders’ equity
792,412
737,584
Noncontrolling interest
185
191
Total liabilities & equity
$
1,466,851
$
1,130,911
SEMTECH CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS AND SUPPLEMENTAL INFORMATION
(in thousands)
(unaudited)
Nine Months Ended
October 30,
2022
October 31,
2021
Net income
$
112,387
$
90,854
Net cash provided by operations
145,510
152,137
Net cash used in investing activities
(761
)
(29,831
)
Net cash provided by (used in) financing
activities
193,451
(114,598
)
Net increase in cash and cash
equivalents
338,200
7,708
Cash and cash equivalents at beginning of
period
279,601
268,891
Cash and cash equivalents at end of
period
$
617,801
$
276,599
Three Months Ended
October 30,
2022
July 31, 2022
October 31,
2021
Q323
Q223
Q322
Free Cash Flow:
Cash Flow from Operations
$
18,181
$
77,278
$
66,538
Net Capital Expenditures
(7,060
)
(7,268
)
(5,349
)
Free Cash Flow
$
11,121
$
70,010
$
61,189
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 30,
2022
July 31, 2022
October 31,
2021
October 30,
2022
October 31,
2021
Q323
Q223
Q322
Q323
Q322
Gross Margin–GAAP
65.1
%
64.9
%
63.5
%
64.8
%
62.5
%
Share-based compensation
0.4
%
0.3
%
0.3
%
0.4
%
0.4
%
Adjusted Gross Margin
(Non-GAAP)
65.5
%
65.2
%
63.8
%
65.2
%
62.9
%
Three Months Ended
Nine Months Ended
October 30,
2022
July 31, 2022
October 31,
2021
October 30,
2022
October 31,
2021
Q323
Q223
Q322
Q323
Q322
Selling, general and
administrative–GAAP
$
42,366
$
48,119
$
47,621
$
133,849
$
128,402
Share-based compensation
1,028
(8,588
)
(12,528
)
(13,692
)
(26,985
)
Transaction and integration related
(costs) recoveries, net
(4,902
)
(4,131
)
(460
)
(9,528
)
(384
)
Restructuring and other reserves, net
(2,139
)
—
—
(2,639
)
(16
)
Litigation costs, net
97
(15
)
(434
)
(99
)
(1,534
)
Adjusted selling, general and
administrative (Non-GAAP)
$
36,450
$
35,385
$
34,199
$
107,891
$
99,483
Three Months Ended
Nine Months Ended
October 30,
2022
July 31, 2022
October 31,
2021
October 30,
2022
October 31,
2021
Q323
Q223
Q322
Q323
Q322
Product development and
engineering–GAAP
$
35,161
$
40,601
$
37,346
$
114,551
$
109,633
Share-based compensation
(3,480
)
(4,052
)
(4,070
)
(11,518
)
(11,600
)
Restructuring and other reserves, net
(105
)
—
—
(105
)
—
Adjusted product development and
engineering (Non-GAAP)
$
31,576
$
36,549
$
33,276
$
102,928
$
98,033
Three Months Ended
Nine Months Ended
October 30,
2022
July 31, 2022
October 31,
2021
October 30,
2022
October 31,
2021
Q323
Q223
Q322
Q323
Q322
Gain on sale of business–GAAP
$
(327
)
$
(17,986
)
$
—
$
(18,313
)
$
—
Gain on sale of business
327
17,986
—
18,313
—
Adjusted Gain on sale of business
(Non-GAAP)
$
—
$
—
$
—
$
—
$
—
Three Months Ended
Nine Months Ended
October 30,
2022
July 31, 2022
October 31,
2021
October 30,
2022
October 31,
2021
Q323
Q223
Q322
Q323
Q322
Operating Margin–GAAP
21.0
%
30.6
%
19.2
%
25.2
%
18.5
%
Share-based compensation
1.8
%
6.3
%
8.9
%
4.7
%
7.4
%
Intangible amortization
0.6
%
0.5
%
0.7
%
0.5
%
0.7
%
Transaction and integration related costs
(recoveries), net
2.8
%
2.0
%
0.2
%
1.6
%
0.1
%
Restructuring and other reserves, net
1.3
%
—
%
—
%
0.5
%
—
%
Litigation costs, net
(0.1
) %
—
%
0.2
%
—
%
0.3
%
Gain on sale of business
(0.2
) %
(8.6
) %
—
%
(3.1
) %
—
%
Changes in the fair value of contingent
earn-out obligations
—
%
—
%
—
%
—
%
—
%
Adjusted Operating Margin
(Non-GAAP)
27.2
%
30.8
%
29.2
%
29.4
%
27.0
%
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 30,
2022
July 31, 2022
October 31,
2021
October 30,
2022
October 31,
2021
Q323
Q223
Q322
Q323
Q322
Interest expense--GAAP
$
9,009
$
1,259
$
1,233
$
11,465
$
3,617
Debit commitment fee
(7,255
)
—
—
(7,255
)
—
Adjusted interest expense
(Non-GAAP)
$
1,754
$
1,259
$
1,233
$
4,210
$
3,617
Three Months Ended
Nine Months Ended
October 30,
2022
July 31, 2022
October 31,
2021
October 30,
2022
October 31,
2021
Q323
Q223
Q322
Q323
Q322
GAAP net income attributable to common
stockholders
$
22,746
$
51,598
$
34,427
$
112,393
$
90,860
Adjustments to GAAP net income
attributable to common stockholders:
Share-based compensation
3,085
13,250
17,341
27,228
40,697
Intangible amortization
1,000
1,048
1,298
3,096
3,894
Transaction and integration related costs
(recoveries), net
4,902
4,131
460
9,528
384
Restructuring and other reserves
2,372
—
—
2,872
16
Litigation costs, net
(97
)
15
434
99
1,534
Gain on sale of business
(327
)
(17,986
)
—
(18,313
)
—
Investment (gains) losses, reserves and
impairments, net
(306
)
(801
)
(96
)
(1,431
)
(136
)
Debt commitment fee
7,255
—
—
7,255
—
Total Non-GAAP adjustments before
taxes
17,884
(343
)
19,437
30,334
46,389
Associated tax effect
688
4,460
(4,199
)
6,151
(9,580
)
Equity in net gains of equity method
investments
36
(283
)
(1,363
)
(271
)
(2,115
)
Total of supplemental information, net of
taxes
18,608
3,834
13,875
36,214
34,694
Non-GAAP net income attributable to
common stockholders
$
41,354
$
55,432
$
48,302
$
148,607
$
125,554
GAAP diluted earnings per share
$
0.36
$
0.81
$
0.53
$
1.76
$
1.38
Adjustments per above
0.29
0.06
0.21
0.56
0.53
Non-GAAP diluted earnings per
share
$
0.65
$
0.87
$
0.74
$
2.32
$
1.91
SEMTECH CORPORATION
RECONCILIATION OF GAAP TO
NON-GAAP OUTLOOK
Fourth Quarter of Fiscal Year
2023 Outlook
(in millions, except per share
data)
Q4 FY23 Outlook
January 29, 2023
Low
High
Gross Margin–GAAP
63.6
%
64.6
%
Share-based compensation
0.4
%
0.4
%
Adjusted Gross Margin
(Non-GAAP)
64.0
%
65.0
%
Low
High
Selling, general and
administrative–GAAP
$
41.4
$
42.4
Share-based compensation
(6.9
)
(6.9
)
Transaction and integration related
(4.0
)
(4.0
)
Adjusted selling, general and
administrative (Non-GAAP)
$
30.5
$
31.5
Low
High
Product development and
engineering–GAAP
$
33.0
$
34.0
Share-based compensation
(3.5
)
(3.5
)
Adjusted product development and
engineering (Non-GAAP)
$
29.5
$
30.5
Low
High
Diluted earnings per share–GAAP
$
0.20
$
0.27
Share-based compensation
0.17
0.17
Transaction, restructuring, and
acquisition related expenses
0.06
0.06
Amortization of acquired intangibles
0.01
0.01
Associated tax effect
—
0.01
Adjusted diluted earnings per share
(Non-GAAP)
$
0.44
$
0.52
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221130005943/en/
Anojja Shah Semtech Corporation (630) 390-6413
webir@semtech.com
Semtech (NASDAQ:SMTC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Semtech (NASDAQ:SMTC)
Historical Stock Chart
From Jul 2023 to Jul 2024