Semtech Q1 2025 Earnings Report
Key Takeaways
Semtech reported solid first-quarter financial results for fiscal year 2025, with net sales above the high end of the guidance range. The company demonstrated improved cost management, with non-GAAP operating expenses down 17% year-over-year, and sequential and year-over-year improvements in adjusted EBITDA and adjusted EBITDA margin.
Net sales of $206.1 million, exceeding the high-end of guidance.
GAAP gross margin of 48.3% and Non-GAAP gross margin of 49.8%, above the midpoint of guidance.
GAAP operating expenses decreased by 16% year-over-year.
Non-GAAP diluted earnings per share of $0.06, above the high-end of guidance.
Semtech
Semtech
Forward Guidance
Semtech anticipates net sales of $212.0 million +/- $5.0 million and non-GAAP diluted earnings per share of $0.09 +/- $0.03 for the second quarter of fiscal year 2025.
Positive Outlook
- Net sales of $212.0 million +/-$5.0 million
- Gross margin of 50.0%+/-50 bps
- Operating expenses, net of $77.5 +/-$1.0 million
- Operating income of $28.5 +/-$2.6 million
- Operating margin of 13.4%+/-90 bps
Challenges Ahead
- Interest expense, net of $20.5 million
- Normalized tax rate of 15%
- Diluted earnings per share of $0.09 +/-$0.03
- Adjusted EBITDA of $36.3 +/-$2.6 million
- Diluted share count of 72.4 million