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Jul 31, 2022
Semtech Q2 2023 Earnings Report
Semtech's financial performance achieved record net sales and earnings per share, driven by strong growth in Wireless and Sensing and Signal Integrity product groups, while anticipating a weaker second half due to the deteriorating macro demand environment.
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.
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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