Latest news with #SemtechCorporation
Yahoo
28-05-2025
- Business
- Yahoo
Semtech's Q1 Earnings Match Estimates, Revenues Increase Y/Y
Semtech Corporation SMTC reported first-quarter fiscal 2026 earnings, wherein the bottom line was in line with the Zacks Consensus Estimate and the top line surpassed the same. SMTC reported first-quarter non-GAAP earnings of 38 cents per share, which matched the Zacks Consensus Estimate. The bottom line exceeded management's guidance of 37 cents per share and showed a robust improvement of more than sixfold from the year-ago quarter's earnings of 6 company's impressive bottom-line performance demonstrated benefits of increased revenues, operational efficiency and effective expense management. Semtech has surpassed the Zacks Consensus Estimate for earnings thrice in the trailing four quarters, while matching the same on one occasion, the average surprise being 10.8%.Semtech's first-quarter fiscal 2026 revenues of $251.1 million beat the Zacks Consensus Estimate by 0.44% and came above the midpoint of management's guidance of $245-$250 million. The top line jumped 22% year over year, with solid growth across all of its end markets, particularly in data company's latest quarterly results are likely to give a fresh boost to its shares. Shares of SMTC have plunged 38.5%, underperforming the Zacks Semiconductor - Analog and Mixed industry's decline of 5.4%. Semtech Corporation price-consensus-eps-surprise-chart | Semtech Corporation Quote SMTC's top-line performance can be attributed to the impressive year-over-year rise in its end from the infrastructure market were $72.8 million (29% of net sales), exhibiting year-over-year growth of 30%. This was driven by solid demand for data centres and continued investment in from the industrial market were $142.8 million (56.9% of net sales), up 24% year over from the high-end consumer market were $35.4 million (14.1% of net sales), up 3% year over year. Strong design-in momentum for SurgeSwitch across multiple device manufacturers, along with broad PerSe proximity sensing deployments and best-in-class low power, sensitivity, and noise rejection, supports top-line growth. Signal Integrity (29.3% of net sales) sales were $73.5 million in the reported quarter, up 26.1% year over year. Analog Mixed Signal & Wireless (36.1% of net sales) sales were $90.6 million, up 20.3% year over System and Connectivity (34.6% of net sales) sales were $86.9 million, up 19.9% on a year-over-year basis. The non-GAAP gross margin of 53.5% expanded 370 basis points (bps) on a year-over-year basis and 30 bps operating expenses of $86.6 million were within SMTC's guidance range. On a year-over-year basis, adjusted operating expenses increased 11.9%.Non-GAAP operating income surged 88.9% year-over-year to $47.6 million. The non-GAAP operating margin improved to 19% from 12.2% reported in the year-ago Balance Sheet & Cash FlowAs of April 27, 2025, cash and cash equivalents were $156.5 million, up from $151.7 million as of Jan. 26, long-term debt was $542.6 million, up from the previous quarter's reported figure of $505.9 the first quarter, Semtech generated operating cash flow and free cash flow of $27.8 million and $26.2 million, respectively. For the second quarter, Semtech expects net sales of $256 million (+/- $5 million). The Zacks Consensus Estimate for the same is pegged at $255.3 million, indicating a year-over-year rise of 18.5%.SMTC expects infrastructure end-market net sales to increase sequentially, driven by data center growth, high-end consumer sales to rise slightly due to typical seasonality and industrial sales to remain flat to slightly down, as moderation in LoRa business to offset IoT cellular non-GAAP gross margin is expected to be 53% (+/- 50 bps). The non-GAAP operating margin is anticipated to be 18.8%.Non-GAAP earnings are expected to be 40 cents (+/- 3 cents) per share. The consensus mark for earnings is pegged at 39 cents per share, indicating a year-over-year rise of 254.6%. The figure remained unchanged over the past 60 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Currently, SMTC carries a Zacks Rank #3 (Hold).Paylocity Holding PCTY, StoneCo STNE and BlackBerry BB are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology STNE and BB sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today's Zacks #1 Rank stocks shares have declined 1% year to date. The Zacks Consensus Estimate for PCTY's full-year 2025 earnings is pegged at $6.95 per share, up by 4.51% over the past 30 days, indicating an increase of 0.99% from the year-ago quarter's reported shares have surged 68.7% year to date. The Zacks Consensus Estimate for STNE's full-year 2025 earnings is pegged at $1.43 per share, up by 3.62% over the past 30 days, indicating a gain of 5.93% from the year-ago quarter's reported shares have gained 9.2% year to date. The Zacks Consensus Estimate for BB's full-year 2025 earnings per share is pegged at 10 cents, unchanged over the past 30 days, indicating a gain of 400% from the year-ago quarter's reported figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Semtech Corporation (SMTC) : Free Stock Analysis Report Paylocity Holding Corporation (PCTY) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Semtech Announces First Quarter of Fiscal Year 2026 Results
Net sales of $251.1 million, representing 22% year-over-year growth GAAP gross margin of 52.3%, up from 48.3% a year ago and Non-GAAP adjusted gross margin of 53.5%, up from 49.8% a year ago GAAP operating margin of 14.3% and Non-GAAP adjusted operating margin of 19.0% Adjusted EBITDA margin of 22.1%, up from 16.1% a year ago GAAP diluted earnings per share of $0.22 compared to a loss of $0.36 a year ago and Non-GAAP adjusted diluted earnings per share of $0.38 compared to $0.06 a year ago CAMARILLO, Calif., May 27, 2025--(BUSINESS WIRE)--Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems and cloud connectivity service provider, today reported unaudited financial results for its first quarter of fiscal year 2026, which ended April 27, 2025. "I am pleased with our solid first quarter results, that reflected improving demand trends, strong business fundamentals and disciplined execution in a dynamic environment," said Hong Hou, president and chief executive officer. "At the same time, we continue investing strategically in innovation, go-to-market capabilities, and operational scale—laying a strong foundation for sustained growth and long-term value creation." "Strong business performance combined with reduced debt resulted in a meaningful improvement to our net leverage ratio," said Mark Lin, executive vice president and chief financial officer. "We continue to prioritize debt reduction with a $10 million term loan principal prepayment in the first quarter and an additional $15 million to date in the second quarter." First Quarter of Fiscal Year 2026 Results (in millions, except per share data) Q1'26 Q4'25 Q1'25 GAAP Financial Results Net sales $ 251.1 $ 251.0 $ 206.1 Gross margin 52.3 % 52.0 % 48.3 % Operating expenses, net $ 95.3 $ 109.3 $ 96.4 Operating income $ 36.0 $ 21.2 $ 3.1 Operating margin 14.3 % 8.5 % 1.5 % Interest expense, net $ 6.2 $ 16.7 $ 22.7 Goodwill impairment $ — $ 7.5 $ — Net income (loss) $ 19.3 $ 39.1 $ (23.2 ) Diluted earnings (loss) per share $ 0.22 $ 0.43 $ (0.36 ) (in millions, except per share data) Q1'26 Q4'25 Q1'25 Net sales $ 251.1 $ 251.0 $ 206.1 Non-GAAP Financial Results Adjusted gross margin* 53.5 % 53.2 % 49.8 % Adjusted operating expenses, net* $ 86.6 $ 83.7 $ 77.4 Adjusted operating income* $ 47.6 $ 49.8 $ 25.2 Adjusted operating margin* 19.0 % 19.9 % 12.2 % Adjusted interest expense, net* $ 5.0 $ 11.2 $ 20.5 Adjusted net income* $ 33.9 $ 34.5 $ 4.1 Adjusted diluted earnings per share* $ 0.38 $ 0.40 $ 0.06 Adjusted EBITDA* $ 55.4 $ 57.8 $ 33.1 Adjusted EBITDA margin* 22.1 % 23.0 % 16.1 % *See "Non-GAAP Financial Measures" below for additional information about our non-GAAP financial results. Second Quarter of Fiscal Year 2026 Outlook (in millions, except per share data) Net sales $ 256.0 +/- $5.0 Non-GAAP Financial Measures Adjusted gross margin* 53.0 % +/- 50 bps Adjusted operating expenses, net* $ 87.5 +/- $1.0 Adjusted operating income* $ 48.2 +/- $3.0 Adjusted operating margin* 18.8 % +/- 80 bps Adjusted interest and other expense, net* $ 5.5 Adjusted normalized tax rate* 15 % Adjusted diluted earnings per share* $ 0.40 +/- $0.03 Adjusted EBITDA* $ 56.0 +/- $3.0 Adjusted EBITDA margin* 21.9 % +/- 80 bps Non-GAAP diluted share count* 90.0 *See "Non-GAAP Financial Measures" below for additional information about our non-GAAP financial results. The Company is unable to include a reconciliation of forward-looking non-GAAP results to the corresponding GAAP measures as they are 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 first fiscal quarter 2026 results at 1:30 p.m. Pacific time. The dial-in number for the call is (877) 407-0312. Please use conference ID 13746451. An audio webcast and supplemental earnings materials for the quarter will be available on the Investor Relations section of Semtech's website at under "News & Events." A replay of the call will be available through June 24, 2025 at the same website or by calling (877) 660-6853 and entering conference ID 13753182. 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 adjusted gross margin, adjusted product development and engineering expense, adjusted SG&A expense, adjusted operating expenses, net, adjusted operating income, adjusted operating margin, adjusted interest expense, net, adjusted net income, adjusted diluted earnings per share, adjusted normalized tax rate, adjusted EBITDA and adjusted EBITDA margin exclude the following items, if any and as applicable, 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 integration of Sierra Wireless, Inc.) Restructuring and other reserves, including cumulative other reserves associated with historical activity including environmental, pension, deferred compensation and right-of-use asset impairments Litigation costs or dispute settlement charges or recoveries 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 Interest rate swap termination Loss on extinguishment of debt Debt commitment fee Goodwill and intangible impairment Amortization of inventory step-up In this release, the Company also presents adjusted EBITDA, adjusted EBITDA margin and free cash flow. Adjusted EBITDA is defined as net income (loss) plus interest expense, interest income, provision (benefit) for 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. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of net sales. 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. Certain non-GAAP financial measures are also used in the Company's compensation programs. The financial statements provided with this release include reconciliations of these non-GAAP financial measures to their most comparable GAAP measures for the first and fourth quarters of fiscal year 2025 and the first quarter of fiscal year 2026. 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 2026, the Company's projected non-GAAP normalized tax rate is 15% and will be applied to each quarter of fiscal year 2026. 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. To provide additional insight into the Company's second quarter outlook, this release also includes a presentation of forward-looking non-GAAP financial measures. See "Second Quarter of Fiscal Year 2026 Outlook" above for further information. 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 second quarter of fiscal year 2026 outlook; future operational performance; the anticipated impact of specific items on future earnings; the Company's expectations regarding near term growth trends; and the Company's plans, objectives and expectations. Statements containing words such as "may," "believes," "see," "anticipates," "expects," "intends," "plans," "projects," "objectives," "estimates," "develops," "should," "could," "will," "designed to," "projections," or "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 volatility of our financial results or impact of the cyclical nature of our industry, including during industry downturns or due to periodic economic uncertainty; the historical rapid decrease of the average selling prices of certain products; disruptions in U.S. or foreign government operations, funding or incentives; changes in export restrictions and laws affecting the Company's trade and investments, including tariffs or retaliatory tariffs; interruption or loss of supplies or services from the limited number of suppliers and subcontractors we rely upon; our suppliers' manufacturing capacity constraints or other supply chain disruptions; failure to successfully develop and sell new products, meet new industry standards or requirements or anticipate changes in projected or end market users; failure to adequately protect our intellectual property rights; failure to make the substantial investments in research and development that are required to remain competitive in our business or to properly anticipate competitive changes in the marketplace; the likelihood of our products being found defective or risk of liability claims asserted against us; business interruptions, such as natural disasters, acts of violence and the outbreak of contagious diseases; adverse changes to general economic conditions in China; the loss of any one of our small number of customers or failure to collect a receivable from them; competition from new or established IoT, cloud services and wireless service companies or from those with greater resources; the difficulties associated with integrating ours and Sierra Wireless, Inc.'s businesses and operations successfully as well as difficulties executing other acquisitions or divestitures; discovery of additional material weaknesses in our internal control over financial reporting in the future or otherwise failing to achieve and maintain effective disclosure controls, procedures and internal control over financial reporting; changes in our effective tax rates, the adoption of new U.S. or foreign tax legislation or exposure to additional tax liabilities, or material differences between our forecasted annual effective tax rates and actual tax rates; the Company's ability to comply with, or pursue business strategies due to, our level of indebtedness or the covenants under the agreements governing our indebtedness; and adverse developments affecting the financial services industry. 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 26, 2025, filed with the SEC on March 25, 2025 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. These forward-looking statements speak 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 statement 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. 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 27, 2025. In the reported results, Q1'26 refers to the quarter ended April 27, 2025, Q4'25 refers to the quarter ended January 26, 2025 and Q1'25 refers to the quarter ended April 28, 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 SEMTECH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (unaudited) Q1'26 Q4'25 Q1'25 Net sales $ 251.1 $ 251.0 $ 206.1 Cost of sales 117.6 118.2 104.2 Amortization of acquired technology 2.2 2.3 2.3 Total cost of sales 119.8 120.5 106.5 Gross profit 131.3 130.5 99.6 Operating expenses, net: Product development and engineering 47.5 46.7 41.6 Selling, general and administrative 46.4 54.5 52.3 Intangible amortization 0.1 0.1 0.3 Restructuring 1.2 0.4 2.3 Goodwill impairment — 7.5 — Total operating expenses, net 95.3 109.3 96.4 Operating income 36.0 21.2 3.1 Interest expense (6.6 ) (17.5 ) (23.2 ) Interest income 0.4 0.8 0.5 Non-operating (expense) income, net (2.8 ) 2.0 0.4 Investment impairments and credit loss reserves, net — — (1.1 ) Income (loss) before taxes and equity method income (loss) 27.0 6.5 (20.3 ) Provision (benefit) for income taxes 8.7 (33.2 ) 3.0 Net income (loss) before equity method income (loss) 18.3 39.7 (23.2 ) Equity method income (loss) 1.0 (0.6 ) 0.1 Net income (loss) $ 19.3 $ 39.1 $ (23.2 ) Earnings (loss) per share: Basic $ 0.22 $ 0.48 $ (0.36 ) Diluted $ 0.22 $ 0.43 $ (0.36 ) Weighted average number of shares used in computing earnings (loss) per share: Basic 86.4 81.3 64.5 Diluted 89.6 90.3 64.5 SEMTECH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) April 27, 2025 January 26, 2025 ASSETS Current assets: Cash and cash equivalents $ 156.5 $ 151.7 Accounts receivable, net 165.7 162.5 Inventories 170.2 163.6 Prepaid taxes 9.1 13.5 Other current assets 96.5 94.1 Total current assets 598.0 585.5 Non-current assets: Property, plant and equipment, net 120.2 126.2 Deferred tax assets 38.6 41.1 Goodwill 533.8 533.1 Other intangible assets, net 36.5 33.1 Other assets 104.7 100.3 Total assets $ 1,432.0 $ 1,419.3 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 69.1 $ 59.2 Accrued liabilities 166.8 178.2 Current portion of long-term debt — 45.6 Total current liabilities 236.0 283.0 Non-current liabilities: Deferred tax liabilities 0.7 0.8 Long-term debt 542.6 505.9 Other long-term liabilities 83.8 87.1 Stockholders' equity 568.8 542.4 Total liabilities & equity $ 1,432.0 $ 1,419.3 SEMTECH CORPORATION SUPPLEMENTAL CASH FLOW INFORMATION (in millions) (unaudited) Q1'26 Q4'25 Q1'25 Net cash provided by (used in) operating activities $ 27.8 $ 33.5 $ (0.1 ) Net capital expenditures (1.7 ) (2.6 ) (1.3 ) Free cash flow $ 26.2 $ 30.9 $ (1.4 ) SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (in millions) (unaudited) Q1'26 (in millions) Signal Integrity Analog Mixed Signal and Wireless Total Semiconductor Products IoT Systems and Connectivity Unallocated1 Total Net sales $ 73.5 $ 90.6 $ 164.1 $ 86.9 $ — $ 251.1 Segment cost of sales 25.4 34.2 59.5 57.0 3.2 119.8 Segment gross profit $ 48.2 $ 56.4 $ 104.6 $ 29.9 $ (3.2 ) $ 131.3 Segment gross margin 65.5 % 62.3 % 63.7 % 34.4 % NM2 Gross margin (GAAP) 52.3 % Share-based compensation 0.3 % Amortization of acquired technology 0.9 % Adjusted gross margin (Non-GAAP) 53.5 % Q4'25 (in millions) Signal Integrity Analog Mixed Signal and Wireless Total Semiconductor Products IoT Systems and Connectivity Unallocated1 Total Net sales $ 72.5 $ 85.4 $ 157.9 $ 93.1 $ — $ 251.0 Segment cost of sales 26.5 39.5 66.0 53.6 0.9 120.5 Segment gross profit $ 46.0 $ 45.9 $ 91.9 $ 39.5 $ (0.9 ) $ 130.5 Segment gross margin 63.4 % 53.8 % 58.2 % 42.5 % NM2 Gross margin (GAAP) ... 52.0 % Share-based compensation 0.3 % Amortization of acquired technology 0.9 % Adjusted gross margin (Non-GAAP) 53.2 % Q1'25 (in millions) Signal Integrity Analog Mixed Signal and Wireless Total Semiconductor Products IoT Systems and Connectivity Unallocated1 Total Net sales $ 58.3 $ 75.3 $ 133.6 $ 72.5 $ — $ 206.1 Segment cost of sales 23.5 34.6 58.2 45.4 3.0 106.5 Segment gross profit $ 34.8 $ 40.7 $ 75.5 $ 27.1 $ (3.0 ) $ 99.6 Segment gross margin 59.6 % 54.0 % 56.5 % 37.4 % NM2 Gross margin (GAAP) 48.3 % Share-based compensation 0.4 % Amortization of acquired technology 1.1 % Adjusted gross margin (Non-GAAP) 49.8 % 1 Unallocated includes share-based compensation and amortization of acquired technology 2 Not meaningful SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in millions) (unaudited) Q1'26 Q4'25 Q1'25 Product development and engineering (GAAP) $ 47.5 $ 46.7 $ 41.6 Share-based compensation (3.7 ) (3.5 ) (3.2 ) Adjusted product development and engineering (Non-GAAP) $ 43.8 $ 43.1 $ 38.4 Q1'26 Q4'25 Q1'25 Selling, general and administrative (GAAP) $ 46.4 $ 54.5 $ 52.3 Share-based compensation (2.4 ) (13.0 ) (11.4 ) Transaction and integration related costs, net (1.1 ) (0.9 ) (1.8 ) Litigation costs, net (0.2 ) (0.1 ) (0.1 ) Adjusted selling, general and administrative (Non-GAAP) $ 42.8 $ 40.5 $ 38.9 Q1'26 Q4'25 Q1'25 Operating expenses, net (GAAP) $ 95.3 $ 109.3 $ 96.4 Share-based compensation (6.1 ) (16.5 ) (14.6 ) Intangible amortization (0.1 ) (0.1 ) (0.3 ) Transaction and integration related costs, net (1.1 ) (0.9 ) (1.8 ) Restructuring and other reserves, net (1.2 ) (0.4 ) (2.3 ) Litigation costs, net (0.2 ) (0.1 ) (0.1 ) Goodwill impairment — (7.5 ) — Adjusted operating expenses, net (Non-GAAP) $ 86.6 $ 83.7 $ 77.4 Q1'26 Q4'25 Q1'25 Operating income (GAAP) $ 36.0 $ 21.2 $ 3.1 Share-based compensation 6.8 17.3 15.2 Intangible amortization 2.4 2.4 2.6 Transaction and integration related costs, net 1.1 0.9 1.8 Restructuring and other reserves, net 1.2 0.4 2.3 Litigation costs, net 0.2 0.1 0.1 Goodwill impairment — 7.5 — Adjusted operating income (Non-GAAP) $ 47.6 $ 49.8 $ 25.2 Q1'26 Q4'25 Q1'25 Operating margin (GAAP) 14.3 % 8.5 % 1.5 % Share-based compensation 2.7 % 6.9 % 7.4 % Intangible amortization 1.0 % 0.9 % 1.3 % Transaction and integration related costs, net 0.4 % 0.3 % 0.9 % Restructuring and other reserves, net 0.5 % 0.2 % 1.1 % Litigation costs, net 0.1 % 0.1 % — % Goodwill impairment — % 3.0 % — % Adjusted operating margin (Non-GAAP) 19.0 % 19.9 % 12.2 % SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in millions, except per share data) (unaudited) Q1'26 Q4'25 Q1'25 Interest expense, net (GAAP) $ 6.2 $ 16.7 $ 22.7 Amortization of deferred financing costs (1.3 ) (1.5 ) (2.4 ) Write-off of deferred financing costs (0.2 ) (7.7 ) — Interest rate swap termination 0.2 3.6 — Investment income — 0.2 0.2 Adjusted interest expense, net (Non-GAAP) $ 5.0 $ 11.2 $ 20.5 Q1'26 Q4'25 Q1'25 GAAP net income (loss) $ 19.3 $ 39.1 $ (23.2 ) Adjustments to GAAP net income (loss): Share-based compensation 6.8 17.3 15.2 Intangible amortization 2.4 2.4 2.6 Transaction and integration related costs, net 1.1 0.9 1.8 Restructuring and other reserves, net 1.2 0.4 2.3 Litigation costs, net 0.2 0.1 0.1 Investment (gains) losses, reserves and impairments, net — (0.2 ) 0.7 Amortization of deferred financing costs 1.3 1.5 2.4 Write-off of deferred financing costs 0.2 7.7 — Interest rate swap termination (0.2 ) (3.6 ) — Goodwill impairment — 7.5 — Total Non-GAAP adjustments before taxes 12.9 34.0 25.1 Associated tax effect 2.7 (39.3 ) 2.2 Equity method (income) loss (1.0 ) 0.6 (0.1 ) Total of supplemental information, net of taxes 14.5 (4.7 ) 27.3 Non-GAAP net income $ 33.9 $ 34.5 $ 4.1 GAAP diluted earnings (loss) per share $ 0.22 $ 0.43 $ (0.36 ) Adjustments per above 0.16 (0.03 ) 0.42 Non-GAAP diluted earnings per share $ 0.38 $ 0.40 $ 0.06 Weighted-average number of shares used in computing diluted earnings per share: GAAP 89.6 90.3 64.5 Non-GAAP 89.3 87.1 67.6 SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in millions) (unaudited) Q1'26 Q4'25 Q1'25 GAAP net income (loss) $ 19.3 $ 39.1 $ (23.2 ) Interest expense 6.6 17.5 23.2 Interest income (0.4 ) (0.8 ) (0.5 ) Non-operating expense (income), net 2.8 (2.0 ) (0.4 ) Investment impairments and credit loss reserves, net — — 1.1 Provision (benefit) for income taxes 8.7 (33.2 ) 3.0 Equity method (income) loss (1.0 ) 0.6 (0.1 ) Share-based compensation 6.8 17.3 15.2 Depreciation and amortization 10.2 10.4 10.5 Transaction and integration related costs, net 1.1 0.9 1.8 Restructuring and other reserves, net 1.2 0.4 2.3 Litigation costs, net 0.2 0.1 0.1 Goodwill impairment — 7.5 — Adjusted EBITDA $ 55.4 $ 57.8 $ 33.1 Q1'26 Q4'25 Q1'25 Operating margin (GAAP) 14.3 % 8.5 % 1.5 % Share-based compensation 2.7 % 6.9 % 7.4 % Depreciation and amortization 4.1 % 4.0 % 5.2 % Transaction and integration related costs, net 0.4 % 0.3 % 0.9 % Restructuring and other reserves, net 0.5 % 0.2 % 1.1 % Litigation costs, net 0.1 % 0.1 % — % Goodwill impairment — % 3.0 % — % Adjusted EBITDA margin 22.1 % 23.0 % 16.1 % View source version on Contacts Mitch HawsSemtech Corporationwebir@
Business Wire
27-05-2025
- Business
- Business Wire
Semtech Announces First Quarter of Fiscal Year 2026 Results
CAMARILLO, Calif.--(BUSINESS WIRE)--Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems and cloud connectivity service provider, today reported unaudited financial results for its first quarter of fiscal year 2026, which ended April 27, 2025. "I am pleased with our solid first quarter results, that reflected improving demand trends, strong business fundamentals and disciplined execution in a dynamic environment," said Hong Hou, president and chief executive officer. "At the same time, we continue investing strategically in innovation, go-to-market capabilities, and operational scale—laying a strong foundation for sustained growth and long-term value creation." "Strong business performance combined with reduced debt resulted in a meaningful improvement to our net leverage ratio," said Mark Lin, executive vice president and chief financial officer. "We continue to prioritize debt reduction with a $10 million term loan principal prepayment in the first quarter and an additional $15 million to date in the second quarter." First Quarter of Fiscal Year 2026 Results (in millions, except per share data) Q1'26 Q4'25 Q1'25 GAAP Financial Results Net sales $ 251.1 $ 251.0 $ 206.1 Gross margin 52.3 % 52.0 % 48.3 % Operating expenses, net $ 95.3 $ 109.3 $ 96.4 Operating income $ 36.0 $ 21.2 $ 3.1 Operating margin 14.3 % 8.5 % 1.5 % Interest expense, net $ 6.2 $ 16.7 $ 22.7 Goodwill impairment $ — $ 7.5 $ — Net income (loss) $ 19.3 $ 39.1 $ (23.2 ) Diluted earnings (loss) per share $ 0.22 $ 0.43 $ (0.36 ) (in millions, except per share data) Q1'26 Q4'25 Q1'25 Net sales $ 251.1 $ 251.0 $ 206.1 Non-GAAP Financial Results Adjusted gross margin* 53.5 % 53.2 % 49.8 % Adjusted operating expenses, net* $ 86.6 $ 83.7 $ 77.4 Adjusted operating income* $ 47.6 $ 49.8 $ 25.2 Adjusted operating margin* 19.0 % 19.9 % 12.2 % Adjusted interest expense, net* $ 5.0 $ 11.2 $ 20.5 Adjusted net income* $ 33.9 $ 34.5 $ 4.1 Adjusted diluted earnings per share* $ 0.38 $ 0.40 $ 0.06 Adjusted EBITDA* $ 55.4 $ 57.8 $ 33.1 Adjusted EBITDA margin* 22.1 % 23.0 % 16.1 % *See "Non-GAAP Financial Measures" below for additional information about our non-GAAP financial results. Expand Second Quarter of Fiscal Year 2026 Outlook (in millions, except per share data) Net sales $ 256.0 +/- $5.0 Non-GAAP Financial Measures Adjusted gross margin* 53.0 % +/- 50 bps Adjusted operating expenses, net* $ 87.5 +/- $1.0 Adjusted operating income* $ 48.2 +/- $3.0 Adjusted operating margin* 18.8 % +/- 80 bps Adjusted interest and other expense, net* $ 5.5 Adjusted normalized tax rate* 15 % Adjusted diluted earnings per share* $ 0.40 +/- $0.03 Adjusted EBITDA* $ 56.0 +/- $3.0 Adjusted EBITDA margin* 21.9 % +/- 80 bps Non-GAAP diluted share count* 90.0 *See "Non-GAAP Financial Measures" below for additional information about our non-GAAP financial results. Expand The Company is unable to include a reconciliation of forward-looking non-GAAP results to the corresponding GAAP measures as they are 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 first fiscal quarter 2026 results at 1:30 p.m. Pacific time. The dial-in number for the call is (877) 407-0312. Please use conference ID 13746451. An audio webcast and supplemental earnings materials for the quarter will be available on the Investor Relations section of Semtech's website at under "News & Events." A replay of the call will be available through June 24, 2025 at the same website or by calling (877) 660-6853 and entering conference ID 13753182. 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 adjusted gross margin, adjusted product development and engineering expense, adjusted SG&A expense, adjusted operating expenses, net, adjusted operating income, adjusted operating margin, adjusted interest expense, net, adjusted net income, adjusted diluted earnings per share, adjusted normalized tax rate, adjusted EBITDA and adjusted EBITDA margin exclude the following items, if any and as applicable, 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 integration of Sierra Wireless, Inc.) Restructuring and other reserves, including cumulative other reserves associated with historical activity including environmental, pension, deferred compensation and right-of-use asset impairments Litigation costs or dispute settlement charges or recoveries 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 Interest rate swap termination Loss on extinguishment of debt Debt commitment fee Goodwill and intangible impairment Amortization of inventory step-up In this release, the Company also presents adjusted EBITDA, adjusted EBITDA margin and free cash flow. Adjusted EBITDA is defined as net income (loss) plus interest expense, interest income, provision (benefit) for 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. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of net sales. 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. Certain non-GAAP financial measures are also used in the Company's compensation programs. The financial statements provided with this release include reconciliations of these non-GAAP financial measures to their most comparable GAAP measures for the first and fourth quarters of fiscal year 2025 and the first quarter of fiscal year 2026. 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 2026, the Company's projected non-GAAP normalized tax rate is 15% and will be applied to each quarter of fiscal year 2026. 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. To provide additional insight into the Company's second quarter outlook, this release also includes a presentation of forward-looking non-GAAP financial measures. See "Second Quarter of Fiscal Year 2026 Outlook" above for further information. 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 second quarter of fiscal year 2026 outlook; future operational performance; the anticipated impact of specific items on future earnings; the Company's expectations regarding near term growth trends; and the Company's plans, objectives and expectations. Statements containing words such as "may," "believes," "see," "anticipates," "expects," "intends," "plans," "projects," "objectives," "estimates," "develops," "should," "could," "will," "designed to," "projections," or "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 volatility of our financial results or impact of the cyclical nature of our industry, including during industry downturns or due to periodic economic uncertainty; the historical rapid decrease of the average selling prices of certain products; disruptions in U.S. or foreign government operations, funding or incentives; changes in export restrictions and laws affecting the Company's trade and investments, including tariffs or retaliatory tariffs; interruption or loss of supplies or services from the limited number of suppliers and subcontractors we rely upon; our suppliers' manufacturing capacity constraints or other supply chain disruptions; failure to successfully develop and sell new products, meet new industry standards or requirements or anticipate changes in projected or end market users; failure to adequately protect our intellectual property rights; failure to make the substantial investments in research and development that are required to remain competitive in our business or to properly anticipate competitive changes in the marketplace; the likelihood of our products being found defective or risk of liability claims asserted against us; business interruptions, such as natural disasters, acts of violence and the outbreak of contagious diseases; adverse changes to general economic conditions in China; the loss of any one of our small number of customers or failure to collect a receivable from them; competition from new or established IoT, cloud services and wireless service companies or from those with greater resources; the difficulties associated with integrating ours and Sierra Wireless, Inc.'s businesses and operations successfully as well as difficulties executing other acquisitions or divestitures; discovery of additional material weaknesses in our internal control over financial reporting in the future or otherwise failing to achieve and maintain effective disclosure controls, procedures and internal control over financial reporting; changes in our effective tax rates, the adoption of new U.S. or foreign tax legislation or exposure to additional tax liabilities, or material differences between our forecasted annual effective tax rates and actual tax rates; the Company's ability to comply with, or pursue business strategies due to, our level of indebtedness or the covenants under the agreements governing our indebtedness; and adverse developments affecting the financial services industry. 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 26, 2025, filed with the SEC on March 25, 2025 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. These forward-looking statements speak 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 statement 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. 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 27, 2025. In the reported results, Q1'26 refers to the quarter ended April 27, 2025, Q4'25 refers to the quarter ended January 26, 2025 and Q1'25 refers to the quarter ended April 28, 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 BALANCE SHEETS (in millions) (unaudited) April 27, 2025 January 26, 2025 ASSETS Current assets: Cash and cash equivalents $ 156.5 $ 151.7 Accounts receivable, net 165.7 162.5 Inventories 170.2 163.6 Prepaid taxes 9.1 13.5 Other current assets 96.5 94.1 Total current assets 598.0 585.5 Non-current assets: Property, plant and equipment, net 120.2 126.2 Deferred tax assets 38.6 41.1 Goodwill 533.8 533.1 Other intangible assets, net 36.5 33.1 Other assets 104.7 100.3 Total assets $ 1,432.0 $ 1,419.3 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 69.1 $ 59.2 Accrued liabilities 166.8 178.2 Current portion of long-term debt — 45.6 Total current liabilities 236.0 283.0 Non-current liabilities: Deferred tax liabilities 0.7 0.8 Long-term debt 542.6 505.9 Other long-term liabilities 83.8 87.1 Stockholders' equity 568.8 542.4 Total liabilities & equity $ 1,432.0 $ 1,419.3 Expand SEMTECH CORPORATION SUPPLEMENTAL CASH FLOW INFORMATION (in millions) (unaudited) Q1'26 Q4'25 Q1'25 Net cash provided by (used in) operating activities $ 27.8 $ 33.5 $ (0.1 ) Net capital expenditures (1.7 ) (2.6 ) (1.3 ) Free cash flow $ 26.2 $ 30.9 $ (1.4 ) Expand SEMTECH CORPORATION (in millions) (unaudited) Q1'26 (in millions) Signal Integrity Analog Mixed Signal and Wireless Total Semiconductor Products IoT Systems and Connectivity Unallocated 1 Total Net sales $ 73.5 $ 90.6 $ 164.1 $ 86.9 $ — $ 251.1 Segment cost of sales 25.4 34.2 59.5 57.0 3.2 119.8 Segment gross profit $ 48.2 $ 56.4 $ 104.6 $ 29.9 $ (3.2 ) $ 131.3 Segment gross margin 65.5 % 62.3 % 63.7 % 34.4 % NM 2 Gross margin (GAAP) 52.3 % Share-based compensation 0.3 % Amortization of acquired technology 0.9 % Adjusted gross margin (Non-GAAP) 53.5 % Q4'25 (in millions) Signal Integrity Analog Mixed Signal and Wireless Total Semiconductor Products IoT Systems and Connectivity Unallocated 1 Total Net sales $ 72.5 $ 85.4 $ 157.9 $ 93.1 $ — $ 251.0 Segment cost of sales 26.5 39.5 66.0 53.6 0.9 120.5 Segment gross profit $ 46.0 $ 45.9 $ 91.9 $ 39.5 $ (0.9 ) $ 130.5 Segment gross margin 63.4 % 53.8 % 58.2 % 42.5 % NM 2 Gross margin (GAAP) 52.0 % Share-based compensation 0.3 % Amortization of acquired technology 0.9 % Adjusted gross margin (Non-GAAP) 53.2 % Q1'25 (in millions) Signal Integrity Analog Mixed Signal and Wireless Total Semiconductor Products IoT Systems and Connectivity Unallocated 1 Total Net sales $ 58.3 $ 75.3 $ 133.6 $ 72.5 $ — $ 206.1 Segment cost of sales 23.5 34.6 58.2 45.4 3.0 106.5 Segment gross profit $ 34.8 $ 40.7 $ 75.5 $ 27.1 $ (3.0 ) $ 99.6 Segment gross margin 59.6 % 54.0 % 56.5 % 37.4 % NM 2 Gross margin (GAAP) 48.3 % Share-based compensation 0.4 % Amortization of acquired technology 1.1 % Adjusted gross margin (Non-GAAP) 49.8 % 1 Unallocated includes share-based compensation and amortization of acquired technology 2 Not meaningful Expand SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in millions) (unaudited) Q1'26 Q4'25 Q1'25 Product development and engineering (GAAP) $ 47.5 $ 46.7 $ 41.6 Share-based compensation (3.7 ) (3.5 ) (3.2 ) Adjusted product development and engineering (Non-GAAP) $ 43.8 $ 43.1 $ 38.4 Q1'26 Q4'25 Q1'25 Selling, general and administrative (GAAP) $ 46.4 $ 54.5 $ 52.3 Share-based compensation (2.4 ) (13.0 ) (11.4 ) Transaction and integration related costs, net (1.1 ) (0.9 ) (1.8 ) Litigation costs, net (0.2 ) (0.1 ) (0.1 ) Adjusted selling, general and administrative (Non-GAAP) $ 42.8 $ 40.5 $ 38.9 Q1'26 Q4'25 Q1'25 Operating expenses, net (GAAP) $ 95.3 $ 109.3 $ 96.4 Share-based compensation (6.1 ) (16.5 ) (14.6 ) Intangible amortization (0.1 ) (0.1 ) (0.3 ) Transaction and integration related costs, net (1.1 ) (0.9 ) (1.8 ) Restructuring and other reserves, net (1.2 ) (0.4 ) (2.3 ) Litigation costs, net (0.2 ) (0.1 ) (0.1 ) Goodwill impairment — (7.5 ) — Adjusted operating expenses, net (Non-GAAP) $ 86.6 $ 83.7 $ 77.4 Q1'26 Q4'25 Q1'25 Operating income (GAAP) $ 36.0 $ 21.2 $ 3.1 Share-based compensation 6.8 17.3 15.2 Intangible amortization 2.4 2.4 2.6 Transaction and integration related costs, net 1.1 0.9 1.8 Restructuring and other reserves, net 1.2 0.4 2.3 Litigation costs, net 0.2 0.1 0.1 Goodwill impairment — 7.5 — Adjusted operating income (Non-GAAP) $ 47.6 $ 49.8 $ 25.2 Q1'26 Q4'25 Q1'25 Operating margin (GAAP) 14.3 % 8.5 % 1.5 % Share-based compensation 2.7 % 6.9 % 7.4 % Intangible amortization 1.0 % 0.9 % 1.3 % Transaction and integration related costs, net 0.4 % 0.3 % 0.9 % Restructuring and other reserves, net 0.5 % 0.2 % 1.1 % Litigation costs, net 0.1 % 0.1 % — % Goodwill impairment — % 3.0 % — % Adjusted operating margin (Non-GAAP) 19.0 % 19.9 % 12.2 % Expand SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in millions, except per share data) (unaudited) Q1'26 Q4'25 Q1'25 Interest expense, net (GAAP) $ 6.2 $ 16.7 $ 22.7 Amortization of deferred financing costs (1.3 ) (1.5 ) (2.4 ) Write-off of deferred financing costs (0.2 ) (7.7 ) — Interest rate swap termination 0.2 3.6 — Investment income — 0.2 0.2 Adjusted interest expense, net (Non-GAAP) $ 5.0 $ 11.2 $ 20.5 Q1'26 Q4'25 Q1'25 GAAP net income (loss) $ 19.3 $ 39.1 $ (23.2 ) Adjustments to GAAP net income (loss): Share-based compensation 6.8 17.3 15.2 Intangible amortization 2.4 2.4 2.6 Transaction and integration related costs, net 1.1 0.9 1.8 Restructuring and other reserves, net 1.2 0.4 2.3 Litigation costs, net 0.2 0.1 0.1 Investment (gains) losses, reserves and impairments, net — (0.2 ) 0.7 Amortization of deferred financing costs 1.3 1.5 2.4 Write-off of deferred financing costs 0.2 7.7 — Interest rate swap termination (0.2 ) (3.6 ) — Goodwill impairment — 7.5 — Total Non-GAAP adjustments before taxes 12.9 34.0 25.1 Associated tax effect 2.7 (39.3 ) 2.2 Equity method (income) loss (1.0 ) 0.6 (0.1 ) Total of supplemental information, net of taxes 14.5 (4.7 ) 27.3 Non-GAAP net income $ 33.9 $ 34.5 $ 4.1 GAAP diluted earnings (loss) per share $ 0.22 $ 0.43 $ (0.36 ) Adjustments per above 0.16 (0.03 ) 0.42 Non-GAAP diluted earnings per share $ 0.38 $ 0.40 $ 0.06 Weighted-average number of shares used in computing diluted earnings per share: GAAP 89.6 90.3 64.5 Non-GAAP 89.3 87.1 67.6 Expand SEMTECH CORPORATION SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED) (in millions) (unaudited) Q1'26 Q4'25 Q1'25 GAAP net income (loss) $ 19.3 $ 39.1 $ (23.2 ) Interest expense 6.6 17.5 23.2 Interest income (0.4 ) (0.8 ) (0.5 ) Non-operating expense (income), net 2.8 (2.0 ) (0.4 ) Investment impairments and credit loss reserves, net — — 1.1 Provision (benefit) for income taxes 8.7 (33.2 ) 3.0 Equity method (income) loss (1.0 ) 0.6 (0.1 ) Share-based compensation 6.8 17.3 15.2 Depreciation and amortization 10.2 10.4 10.5 Transaction and integration related costs, net 1.1 0.9 1.8 Restructuring and other reserves, net 1.2 0.4 2.3 Litigation costs, net 0.2 0.1 0.1 Goodwill impairment — 7.5 — Adjusted EBITDA $ 55.4 $ 57.8 $ 33.1 Q1'26 Q4'25 Q1'25 Operating margin (GAAP) 14.3 % 8.5 % 1.5 % Share-based compensation 2.7 % 6.9 % 7.4 % Depreciation and amortization 4.1 % 4.0 % 5.2 % Transaction and integration related costs, net 0.4 % 0.3 % 0.9 % Restructuring and other reserves, net 0.5 % 0.2 % 1.1 % Litigation costs, net 0.1 % 0.1 % — % Goodwill impairment — % 3.0 % — % Adjusted EBITDA margin 22.1 % 23.0 % 16.1 % Expand
Yahoo
20-05-2025
- Business
- Yahoo
Semtech Corporation (SMTC) Beats Q4 Estimates; Stifel Cuts Price Target Citing Softer Outlook and Tariff Risks
Stifel analyst Tore Svanberg recently lowered the price target on Semtech Corporation (NASDAQ:SMTC) to $35 from $54 and kept a Buy rating on the shares. Semtech Corporation (SMTC) develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. Tariff-impacts, including secondary and tertiary impacts, leave the advisory with an overarching view entering the Q1 earnings season for the Analog, Connectivity and Processors group to have generally in-line March quarter results, but softer June quarter outlooks. Regardless of where tariffs eventually shake out in magnitude, duration and breadth, the advisory believes the likelihood of the overall semiconductor industry tipping over into a cyclical downturn has increased materially, the analyst added in a preview note. A technician looking at a circuit board of analog semiconductor products. In earnings for the fourth fiscal quarter, the company reported earnings per share of $0.40, beating analyst estimates by $0.08. The revenue over the period was $251 million, beating market estimates by $1.74 million. While we acknowledge the potential of SMTC, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SMTC and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Semtech Corporation (SMTC) Beats Q4 Estimates; Stifel Cuts Price Target Citing Softer Outlook and Tariff Risks
Stifel analyst Tore Svanberg recently lowered the price target on Semtech Corporation (NASDAQ:SMTC) to $35 from $54 and kept a Buy rating on the shares. Semtech Corporation (SMTC) develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. Tariff-impacts, including secondary and tertiary impacts, leave the advisory with an overarching view entering the Q1 earnings season for the Analog, Connectivity and Processors group to have generally in-line March quarter results, but softer June quarter outlooks. Regardless of where tariffs eventually shake out in magnitude, duration and breadth, the advisory believes the likelihood of the overall semiconductor industry tipping over into a cyclical downturn has increased materially, the analyst added in a preview note. A technician looking at a circuit board of analog semiconductor products. In earnings for the fourth fiscal quarter, the company reported earnings per share of $0.40, beating analyst estimates by $0.08. The revenue over the period was $251 million, beating market estimates by $1.74 million. While we acknowledge the potential of SMTC, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SMTC and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
