Semtech Q2 2023 Earnings Report
Key Takeaways
Semtech reported record net sales of $209.3 million for Q2 2023, a 3.5% sequential increase and a 13.1% year-over-year increase. GAAP EPS was $0.81 and non-GAAP EPS was $0.87. The company anticipates a weaker second half performance due to the deteriorating macro demand environment.
Net sales reached a record $209.3 million, up 3.5% sequentially and 13.1% year-over-year.
GAAP gross margin was a record 64.9%, growing 50bps sequentially and 250bps year-over-year.
GAAP and non-GAAP diluted earnings per share were a record $0.81 and $0.87, respectively.
Operating cash flow was a record $77.3 million, representing 36.9% of net sales.
Semtech
Semtech
Forward Guidance
Semtech anticipates net sales in the range of $170.0 million to $180.0 million for Q3 2023. GAAP gross margin is expected to be in the range of 64.5% to 65.6% and GAAP diluted earnings per share is expected to be in the range of $0.19 to $0.24.
Positive Outlook
- Non-GAAP Gross margin is expected to be in the range of 65.0% to 66.0%
- Non-GAAP SG&A expense is expected to be in the range of $33.0 million to $35.0 million
- Non-GAAP R&D expense is expected to be in the range of $32.0 million to $34.0 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 $0.60 to $0.66
Challenges Ahead
- Net sales are expected to be in the range of $170.0 million to $180.0 million
- GAAP Gross margin is expected to be in the range of 64.5% to 65.6%
- GAAP SG&A expense is expected to be in the range of $55.2 million to $57.2 million
- GAAP R&D expense is expected to be in the range of $36.5 million to $38.5 million
- GAAP Diluted earnings per share is expected to be in the range of $0.19 to $0.24