•
Apr 26, 2020

Semtech Q1 2021 Earnings Report

Semtech reported strong Q1 results, demonstrating resilience despite COVID-19 disruptions, with secular growth drivers in IoT, hyperscale data center, and mobility remaining intact.

Key Takeaways

Semtech reported Q1 FY2021 net sales of $132.7 million, GAAP EPS of $0.15, and non-GAAP EPS of $0.35. The company saw sequential growth in net bookings and distributor point of sale, with cash flow from operations at 20% of net sales.

Net sales reached $132.7 million.

GAAP EPS was $0.15, and non-GAAP EPS was $0.35.

Net bookings increased sequentially by 22%.

Distributor Point of Sale increased 5% sequentially, representing a new quarterly record.

Total Revenue
$133M
Previous year: $131M
+1.0%
EPS
$0.35
Previous year: $0.34
+2.9%
Gross Profit
$80.8M
Previous year: $81.3M
-0.6%
Cash and Equivalents
$269M
Previous year: $287M
-6.4%
Free Cash Flow
$18.4M
Previous year: -$8.52M
-316.2%
Total Assets
$1.02B
Previous year: $1.05B
-2.9%

Semtech

Semtech

Forward Guidance

Semtech anticipates net sales between $138.0 million and $146.0 million for Q2 2021, with GAAP EPS expected to be in the range of $0.21 to $0.26 and non-GAAP EPS between $0.40 and $0.44.

Positive Outlook

  • Net sales are expected to be in the range of $138.0 million to $146.0 million.
  • GAAP Gross margin is expected to be in the range of 60.8% to 61.6%.
  • GAAP Earnings per diluted share are expected to be in the range of $0.21 to $0.26.
  • Non-GAAP Gross margin is expected to be in the range of 61.2% to 62.0%.
  • Non-GAAP Earnings per diluted share are expected to be in the range of $0.40 to $0.44.

Challenges Ahead

  • The outlook takes into account the anticipated, but uncertain, negative impact of the coronavirus (COVID-19) pandemic on global economic conditions.
  • Export restrictions pertaining to Huawei and certain of its affiliates imposed by the U.S. government are expected to have a negative impact.
  • GAAP SG&A expense is expected to be in the range of $37.0 million to $38.0 million.
  • GAAP R&D expense is expected to be in the range of $27.5 million to $28.5 million.
  • Non-GAAP SG&A expense is expected to be in the range of $28.5 million to $29.5 million.