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Semtech Announces Fourth Quarter and Fiscal Year 2024 Results

Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems and cloud connectivity service provider, today reported unaudited financial results for its fourth quarter and fiscal ...

Business Wire

Fourth Quarter of Fiscal Year 2024

  • Net sales of $192.9 million, above the midpoint of guidance
  • GAAP gross margin of (0.2)% and Non-GAAP gross margin of 48.9%, above the midpoint of guidance
  • GAAP diluted loss per share of $9.98 and Non-GAAP diluted loss per share of $0.06
  • Positive operating cash flow of $13.9 million and free cash flow of $12.2 million
  • Completed optional credit facility prepayment of $5.0 million

Fiscal Year 2024

  • Net sales of $868.8 million
  • GAAP gross margin of 34.1% and Non-GAAP gross margin of 49.5%
  • GAAP diluted loss per share of $17.03 and Non-GAAP diluted earnings per share of $0.14

GAAP gross margin and diluted loss per share are reflective of goodwill and intangible asset impairment charges.

CAMARILLO, Calif.: Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems and cloud connectivity service provider, today reported unaudited financial results for its fourth quarter and fiscal year 2024, which ended January 28, 2024.

"End market demand for our semiconductor business has progressed from stable to growing," said Paul H. Pickle, Semtech's president and chief executive officer. "While our hardware business remains constrained, we believe Semtech is well-positioned to benefit from near-term growth trends, particularly in our infrastructure end market."

"Working capital improvements contributed to positive operating and free cash flows for the fourth quarter, and we completed an optional principal prepayment on our credit facility," said Mark Lin, Semtech's executive vice president and chief financial officer. "We went live on a single ERP at the beginning of the first quarter of fiscal year 2025, which we expect will increase efficiencies and enhance internal controls."

Fourth Quarter and Fiscal Year 2024 Results

 

GAAP Financial Results

 

Three Months Ended

 

Twelve Months Ended

(in millions, except per share data)

Q424

 

Q324

 

Q423

 

Q424

 

Q423

Net sales

$

192.9

 

 

$

200.9

 

 

$

167.5

 

 

$

868.8

 

 

$

756.5

 

Gross margin

 

(0.2

)%

 

 

46.3

%

 

 

59.7

%

 

 

34.1

%

 

 

63.3

%

Operating costs and expenses, net

$

619.6

 

 

$

105.3

 

 

$

155.7

 

 

$

1,240.6

 

 

$

385.8

 

Operating (loss) income

$

(620.0

)

 

$

(12.4

)

 

$

(55.7

)

 

$

(944.3

)

 

$

92.8

 

Operating margin

 

(321.3

)%

 

 

(6.2

)%

 

 

(33.2

)%

 

 

(108.7

)%

 

 

12.3

%

Interest expense, net

$

22.1

 

 

$

27.7

 

 

$

2.1

 

 

$

92.8

 

 

$

11.8

 

Goodwill impairment

$

473.8

 

 

$

2.3

 

 

$

 

 

$

755.6

 

 

$

 

Intangible impairments

$

131.4

 

 

$

 

 

$

 

 

$

131.4

 

 

$

 

Diluted (loss) earnings per share

$

(9.98

)

 

$

(0.60

)

 

$

(0.80

)

 

$

(17.03

)

 

$

0.96

 

 

Non-GAAP Financial Results

 

Three Months Ended

 

Twelve Months Ended

(in millions, except per share data)

Q424

 

Q324

 

Q423

 

Q424

 

Q423

Net sales

$

192.9

 

 

$

200.9

 

 

$

167.5

 

 

$

868.8

 

 

$

756.5

 

Gross margin

 

48.9

%

 

 

51.3

%

 

 

62.3

%

 

 

49.5

%

 

 

64.5

%

Operating costs and expenses, net

$

76.5

 

 

$

82.5

 

 

$

66.7

 

 

$

337.5

 

 

$

277.5

 

Operating income

$

17.8

 

 

$

20.5

 

 

$

37.7

 

 

$

92.7

 

 

$

210.7

 

Operating margin

 

9.2

%

 

 

10.2

%

 

 

22.5

%

 

 

10.7

%

 

 

27.8

%

Interest expense, net

$

19.9

 

 

$

22.3

 

 

$

1.6

 

 

$

81.8

 

 

$

4.6

 

Diluted (loss) earnings per share

$

(0.06

)

 

$

0.02

 

 

$

0.49

 

 

$

0.14

 

 

$

2.81

 

Adjusted EBITDA

$

24.0

 

 

$

28.1

 

 

$

44.1

 

 

$

122.0

 

 

$

236.3

 

Goodwill impairment was $755.6 million and intangible impairments were $131.4 million for fiscal year 2024 primarily due to reduced earnings forecasts associated with the business acquired from Sierra Wireless and current macroeconomic conditions, including an elevated interest rate environment.

See "Non-GAAP Financial Measures" below for additional information about our non-GAAP financial results.

First Quarter of Fiscal Year 2025 Outlook

<

(in millions, except per share data)

 

Net sales

$

200.0

 

 

+/-

 

$

5.0

Non-GAAP Financial Measures

 

 

 

 

 

Gross margin

 

49.5

%

 

+/-

 

 

100 bps

Operating costs and expenses, net

$

78.5

 

 

+/-

 

$

1.5