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May 01, 2022

Semtech Q1 2023 Earnings Report

Reported record results driven by solid growth from all product groups.

Key Takeaways

Semtech reported a strong start to fiscal year 2023 with record revenues and earnings during the first quarter, driven by solid growth from all of its product groups.

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 GAAP and non-GAAP diluted earnings per share of $0.59 and $0.80, respectively

Operating cash flow of $50.1 million or 24.8% of Q1 FY2023 net sales

Total Revenue
$202M
Previous year: $170M
+18.7%
EPS
$0.8
Previous year: $0.53
+50.9%
Gross Profit
$130M
Previous year: $105M
+24.2%
Cash and Equivalents
$275M
Previous year: $258M
+6.6%
Free Cash Flow
$41.7M
Previous year: $26.8M
+55.6%
Total Assets
$1.12B
Previous year: $1.07B
+4.3%

Semtech

Semtech

Forward Guidance

Semtech provided GAAP second fiscal quarter 2023 outlook. Net sales are expected to be in the range of $203.0 million to $213.0 million and GAAP Diluted earnings per share is expected to be in the range of $0.79 to $0.89.

Positive 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 Diluted earnings per share is expected to be in the range of $0.79 to $0.89

Challenges Ahead

  • The outlook takes into account the impact of the divestiture of the Company's high reliability discrete diodes and assemblies business
  • The outlook takes into account the uncertain, but potential negative impact to the Company of the current supply chain constraints and any associated disruptions
  • The outlook takes into account the ongoing COVID-19 pandemic on global economic conditions and on the Company's business operations, net sales and operating results
  • The outlook takes into account export restrictions
  • The Company is unable to predict the full impact such challenges may have on its future results of operations.