SMTC
$53.10
Semtech
($1.26)
(2.32%)
Earnings Details
1st Quarter April 2022
Wednesday, June 1, 2022 4:20:00 PM
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Summary

Semtech Beats

Semtech (SMTC) reported 1st Quarter April 2022 earnings of $0.83 per share on revenue of $202.1 million. The consensus earnings estimate was $0.76 per share on revenue of $199.8 million. The Earnings Whisper number was $0.78 per share. Revenue grew 18.7% on a year-over-year basis.

The company said it expects second quarter non-GAAP earnings of $0.80 to $0.90 per share on revenue of $203.0 million to $213.0 million. The current consensus earnings estimate is $0.87 per share on revenue of $208.61 million for the quarter ending July 31, 2022.

Semtech Corp designs, develops and markets products for commercial applications, the majority of which are sold into the enterprise computing, communications, high-end consumer and industrial end-markets.

Results
Reported Earnings
$0.83
Earnings Whisper
$0.78
Consensus Estimate
$0.76
Reported Revenue
$202.1 Mil
Revenue Estimate
$199.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Semtech Announces First Quarter of Fiscal Year 2023 Results

CAMARILLO, Calif.--(BUSINESS WIRE)--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 first quarter of fiscal year 2023, which ended May 1, 2022.

Highlights for the First Quarter of Fiscal Year 2023

  • Record net sales of $202.1 million, an increase of 6.1% sequentially and 18.7% year-over-year
  • Record GAAP gross margin of 64.4% grew 30bps sequentially and 290bps year-over-year
  • Record non-GAAP gross margin of 64.8% grew 30bps sequentially and 280bps year-over-year
  • Record GAAP and non-GAAP diluted earnings per share of $0.59 and $0.80, respectively
  • Record Wireless and Sensing products group net sales grew 8.6% sequentially and 15.0% year-over-year driven by record LoRa®-enabled sales
  • Record Signal Integrity products group net sales grew 4.4% sequentially and 18.9% year-over-year driven by strong hyperscale data center sales and 10G and 2.5G PON sales
  • Protection products group net sales grew 5.5% sequentially and 23.0% year-over-year driven by strong Industrial and Automotive product sales
  • Operating cash flow of $50.1 million or 24.8% of Q1 FY2023 net sales
  • Repurchased 762,093 shares for $50.0 million

Results on a GAAP basis for the First Fiscal Quarter 2023

  • Net sales were $202.1 million
  • GAAP Gross margin was 64.4%
  • GAAP SG&A expense was $43.4 million
  • GAAP R&D expense was $38.8 million
  • GAAP Operating margin was 23.3%
  • GAAP Net income attributable to common stockholders was $38.0 million or $0.59 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 First 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 64.8%
  • Non-GAAP SG&A expense was $36.1 million
  • Non-GAAP R&D expense was $34.8 million
  • Non-GAAP Operating margin was 29.8%
  • Non-GAAP Net income attributable to common stockholders was $51.8 million or $0.80 diluted earnings per share

Mohan Maheswaran, Semtech’s President and Chief Executive Officer, stated, “Our fiscal year 2023 is off to a very strong start driven by solid growth from all of our product groups. We achieved record revenues and record earnings during the quarter. We believe that our strategy of developing advanced technology platforms targeted at enabling a smarter planet will continue to drive sustainable top and bottom line growth for years to come."

Second Fiscal Quarter 2023 Outlook

Both the GAAP and non-GAAP second fiscal quarter 2023 outlook below take into account the impact of the divestiture of the Company's high reliability discrete diodes and assemblies business and, based on the Company's current estimates, the uncertain, but potential negative impact to the Company of the current supply chain constraints and any associated disruptions, and the ongoing 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 Second Fiscal Quarter 2023 Outlook

  • Net sales are expected to be in the range of $203.0 million to $213.0 million
  • GAAP Gross margin is expected to be in the range of 64.1% to 65.5%
  • GAAP SG&A expense is expected to be in the range of $45.1 million to $46.1 million
  • GAAP R&D expense is expected to be in the range of $39.5 million to $40.5 million
  • GAAP Intangible amortization expense is expected to be approximately $1.0 million
  • GAAP Interest and other expense, net is expected to be approximately $1.5 million
  • GAAP Effective tax rate is expected to be in the range of 17% to 19%
  • GAAP Diluted earnings per share is expected to be in the range of $0.79 to $0.89
  • Fully-diluted share count is expected to be approximately 64.0 million shares
  • Share-based compensation is expected to be approximately $12.3 million, categorized as follows: $0.8 million cost of sales, $7.0 million SG&A, and $4.5 million R&D
  • Capital expenditures are expected to be approximately $10.7 million
  • Depreciation expense is expected to be approximately $6.4 million

Non-GAAP Second 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 64.5% to 65.9%
  • Non-GAAP SG&A expense is expected to be in the range of $36.0 million to $37.0 million
  • Non-GAAP R&D expense is expected to be in the range of $35.0 million to $36.0 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 $0.80 to $0.90

Webcast and Conference Call

Semtech will be hosting a conference call today to discuss its first fiscal quarter 2023 results at 2:00 p.m. Pacific time. 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 June 29, 2022 at the same website or by calling (877) 660-6853 and entering conference ID 13725336.

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, 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, transaction 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
  • 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 second 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 first and fourth quarters of fiscal year 2022 and the first quarter of fiscal year 2023, 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 second 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 second quarter of fiscal year 2023 outlook and our expectations for growth and strong financial results in fiscal year 2023; 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 uncertainty surrounding the impact and duration of supply chain constraints and any associated disruptions; the uncertainty surrounding the impact and duration of the COVID-19 pandemic; export restrictions and laws affecting the Company's trade and investments, and tariffs or the occurrence of trade wars; worldwide economic and political disruptions as a result of 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 of Semtech Corporation or its subsidiaries.

SMTC-F

SEMTECH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended

 

May 1,
2022

 

January 30,
2022

 

May 2,
2021

 

Q123

 

Q422

 

Q122

Net sales

$

202,149

 

 

$

190,550

 

 

$

170,372

 

Cost of sales

 

71,896

 

 

 

68,451

 

 

 

65,511

 

Gross profit

 

130,253

 

 

 

122,099

 

 

 

104,861

 

Operating costs and expenses:

 

 

 

 

 

Selling, general and administrative

 

43,364

 

 

 

39,808

 

 

 

38,804

 

Product development and engineering

 

38,789

 

 

 

38,292

 

 

 

36,790

 

Intangible amortization

 

1,048

 

 

 

1,048

 

 

 

1,298

 

Changes in the fair value of contingent earn-out obligations

 

 

 

 

(13

)

 

 

 

Total operating costs and expenses

 

83,201

 

 

 

79,135

 

 

 

76,892

 

Operating income

 

47,052

 

 

 

42,964

 

 

 

27,969

 

Interest expense

 

(1,197

)

 

 

(1,474

)

 

 

(1,199

)

Non-operating income, net

 

262

 

 

 

68

 

 

 

94

 

Investment impairments and credit loss reserves

 

(24

)

 

 

(407

)

 

 

(246

)

Income before taxes and equity in net gains of equity method investments

 

46,093

 

 

 

41,151

 

 

 

26,618

 

Provision for taxes

 

8,069

 

 

 

6,360

 

 

 

3,198

 

Net income before equity in net gains of equity method investments

 

38,024

 

 

 

34,791

 

 

 

23,420

 

Equity in net gains of equity method investments

 

24

 

 

 

 

 

 

78

 

Net income

 

38,048

 

 

 

34,791

 

 

 

23,498

 

Net loss attributable to noncontrolling interest

 

(1

)

 

 

(13

)

 

 

(2

)

Net income attributable to common stockholders

$

38,049

 

 

$

34,804

 

 

$

23,500

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

Basic

$

0.59

 

 

$

0.54

 

 

$

0.36

 

Diluted

$

0.59

 

 

$

0.53

 

 

$

0.36

 

 

 

 

 

 

 

Weighted average number of shares used in computing earnings per share:

 

 

 

 

 

Basic

 

63,950

 

 

 

64,289

 

 

 

65,089

 

Diluted

 

64,553

 

 

 

65,235

 

 

 

66,110

 

SEMTECH CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

May 1, 2022

 

January 30, 2022

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

275,184

 

$

279,601

Accounts receivable, net

 

66,360

 

 

71,507

Inventories

 

106,901

 

 

114,003

Prepaid taxes

 

2,442

 

 

5,983

Assets held for sale

 

9,065

 

 

Other current assets

 

35,471

 

 

31,201

Total current assets

 

495,423

 

 

502,295

Non-current assets:

 

 

 

Property, plant and equipment, net

 

133,590

 

 

134,940

Deferred tax assets

 

25,643

 

 

27,803

Goodwill

 

350,306

 

 

351,141

Other intangible assets, net

 

5,756

 

 

6,804

Other assets

 

105,198

 

 

107,928

Total assets

$

1,115,916

 

$

1,130,911

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

48,381

 

$

50,695

Accrued liabilities

 

60,793

 

 

77,704

Liabilities held for sale

 

1,242

 

 

Total current liabilities

 

110,416

 

 

128,399

Non-current liabilities:

 

 

 

Deferred tax liabilities

 

1,066

 

 

1,132

Long term debt

 

181,797

 

 

171,676

Other long-term liabilities

 

87,464

 

 

91,929

Stockholders’ equity

 

734,983

 

 

737,584

Noncontrolling interest

 

190

 

 

191

Total liabilities & equity

$

1,115,916

 

$

1,130,911

SEMTECH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND SUPPLEMENTAL INFORMATION

(in thousands)

(unaudited)

 

 

Three Months Ended

 

 

 

May 1,
2022

 

May 2,
2021

 

 

Net income

$

38,048

 

 

$

23,498

 

 

 

 

 

 

 

 

 

Net cash provided by operations

 

50,051

 

 

 

32,585

 

 

 

Net cash used in investing activities

 

(10,315

)

 

 

(8,655

)

 

 

Net cash used in financing activities

 

(44,153

)

 

 

(34,602

)

 

 

Net decrease in cash and cash equivalents

 

(4,417

)

 

 

(10,672

)

 

 

Cash and cash equivalents at beginning of period

 

279,601

 

 

 

268,891

 

 

 

Cash and cash equivalents at end of period

$

275,184

 

 

$

258,219

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

May 1,
2022

 

January 30,
2022

 

May 2,
2021

 

Q123

 

Q422

 

Q122

Free Cash Flow:

 

 

 

 

 

Cash Flow from Operations

$

50,051

 

 

$

50,986

 

 

$

32,585

 

Net Capital Expenditures

 

(8,315

)

 

 

(8,100

)

 

 

(5,760

)

Free Cash Flow

$

41,736

 

 

$

42,886

 

 

$

26,825

 

SEMTECH CORPORATION

SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended

 

May 1,
2022

 

January 30,
2022

 

May 2,
2021

 

Q123

 

Q422

 

Q122

Gross Margin–GAAP

 

64.4

%

 

 

64.1

%

 

 

61.5

%

Share-based compensation

 

0.4

%

 

 

0.4

%

 

 

0.5

%

Adjusted Gross Margin (Non-GAAP)

 

64.8

%

 

 

64.5

%

 

 

62.0

%

 

 

 

 

 

 

 

Three Months Ended

 

May 1,
2022

 

January 30,
2022

 

May 2,
2021

 

Q123

 

Q422

 

Q122

Selling, general and administrative–GAAP

$

43,364

 

 

$

39,808

 

 

$

38,804

 

Share-based compensation

 

(6,132

)

 

 

(5,593

)

 

 

(7,359

)

Transaction and integration related (costs) recoveries, net

 

(495

)

 

 

(204

)

 

 

177

 

Restructuring and other reserves, net

 

(500

)

 

 

 

 

 

 

Litigation (costs) recoveries, net

 

(181

)

 

 

152

 

 

 

(540

)

Adjusted selling, general and administrative (Non-GAAP)

$

36,056

 

 

$

34,163

 

 

$

31,082

 

 

 

 

 

 

 

 

Three Months Ended

 

May 1,
2022

 

January 30,
2022

 

May 2,
2021

 

Q123

 

Q422

 

Q122

Product development and engineering–GAAP

$

38,789

 

 

$

38,292

 

 

$

36,790

 

Share-based compensation

 

(3,986

)

 

 

(4,110

)

 

 

(3,762

)

Transaction and integration related recoveries, net

 

 

 

 

329

 

 

 

 

Adjusted product development and engineering (Non-GAAP)

$

34,803

 

 

$

34,511

 

 

$

33,028

 

 

 

 

 

 

 

 

Three Months Ended

 

May 1,
2022

 

January 30,
2022

 

May 2,
2021

 

Q123

 

Q422

 

Q122

Operating Margin–GAAP

 

23.3

%

 

 

22.5

%

 

 

16.4

%

Share-based compensation

 

5.5

%

 

 

5.6

%

 

 

6.9

%

Intangible amortization

 

0.5

%

 

 

0.6

%

 

 

0.8

%

Transaction and integration related costs (recoveries), net

 

0.2

%

 

 

(0.1

)%

 

 

(0.1

)%

Restructuring and other reserves, net

 

0.2

%

 

 

%

 

 

%

Litigation costs (recoveries), net

 

0.1

%

 

 

(0.1

)%

 

 

0.3

%

Adjusted Operating Margin (Non-GAAP)

 

29.8

%

 

 

28.5

%

 

 

24.3

%

SEMTECH CORPORATION

SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended

 

May 1,
2022

 

January 30,
2022

 

May 2,
2021

 

Q123

 

Q422

 

Q122

GAAP net income attributable to common stockholders

$

38,049

 

 

$

34,804

 

 

$

23,500

 

Adjustments to GAAP net income attributable to common stockholders:

 

 

 

 

 

Share-based compensation

 

10,893

 

 

 

10,492

 

 

 

11,839

 

Intangible amortization

 

1,048

 

 

 

1,048

 

 

 

1,298

 

Transaction and integration related costs (recoveries), net

 

495

 

 

 

(125

)

 

 

(177

)

Restructuring and other reserves

 

500

 

 

 

 

 

 

 

Litigation costs (recoveries), net

 

181

 

 

 

(152

)

 

 

540

 

Changes in the fair value of contingent earn-out obligations

 

 

 

 

(13

)

 

 

 

Investment (gains) losses, reserves and impairments, net

 

(324

)

 

 

65

 

 

 

(84

)

Total Non-GAAP adjustments before taxes

 

12,793

 

 

 

11,315

 

 

 

13,416

 

Associated tax effect

 

1,003

 

 

 

(460

)

 

 

(2,006

)

Equity in net gains of equity method investments

 

(24

)

 

 

 

 

 

(78

)

Total of supplemental information, net of taxes

 

13,772

 

 

 

10,855

 

 

 

11,332

 

Non-GAAP net income attributable to common stockholders

$

51,821

 

 

$

45,659

 

 

$

34,832

 

 

 

 

 

 

 

GAAP diluted earnings per share

$

0.59

 

 

$

0.53

 

 

$

0.36

 

Adjustments per above

 

0.21

 

 

 

0.17

 

 

 

0.17

 

Non-GAAP diluted earnings per share

$

0.80

 

 

$

0.70

 

 

$

0.53

 

SEMTECH CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK

Second Quarter of Fiscal Year 2023 Outlook

(in millions, except per share data)

 

 

 

Q2 FY23 Outlook

 

 

July 31, 2022

 

 

Low

 

High

Gross Margin–GAAP

 

 

64.1

%

 

 

65.5

%

Share-based compensation

 

 

0.4

%

 

 

0.4

%

Adjusted Gross Margin (Non-GAAP)

 

 

64.5

%

 

 

65.9

%

 

 

 

 

 

 

 

Low

 

High

Selling, general and administrative–GAAP

 

$

45.1

 

 

$

46.1

 

Share-based compensation

 

 

(7.0

)

 

 

(7.0

)

Transaction and integration related

 

 

(2.1

)

 

 

(2.1

)

Adjusted selling, general and administrative (Non-GAAP)

 

$

36.0

 

 

$

37.0

 

 

 

 

 

 

 

 

Low

 

High

Product development and engineering–GAAP

 

$

39.5

 

 

$

40.5

 

Share-based compensation

 

 

(4.5

)

 

 

(4.5

)

Adjusted product development and engineering (Non-GAAP)

 

$

35.0

 

 

$

36.0

 

 

 

 

 

 

 

 

Low

 

High

Gain on sale of business–GAAP

 

$

(19.0

)

 

$

(19.0

)

Gain on sale of business

 

 

19.0

 

 

 

19.0

 

Adjusted gain on sale of business (Non-GAAP)

 

$

 

 

$

 

 

 

 

 

 

 

 

Low

 

High

Diluted earnings per share–GAAP

 

$

0.79

 

 

$

0.89

 

Share-based compensation

 

 

0.19

 

 

 

0.19

 

Transaction, restructuring, and acquisition related expenses

 

 

0.03

 

 

 

0.03

 

Amortization of acquired intangibles

 

 

0.02

 

 

 

0.02

 

Gain on sale of business

 

 

(0.30

)

 

 

(0.30

)

Associated tax effect

 

 

0.07

 

 

 

0.07

 

Adjusted diluted earnings per share (Non-GAAP)

 

$

0.80

 

 

$

0.90

 

 

Julie McGee
Semtech Corporation
(805) 480-2004
webir@semtech.com

Source: Semtech Corporation