Semtech Q3 2022 Earnings Report
Key Takeaways
Semtech reported record third quarter fiscal year 2022 results, with record net sales of $194.9 million, record GAAP EPS of $0.53, and record non-GAAP EPS of $0.74. The company saw strong demand from the IoT and Infrastructure segments, led by new record net sales by LoRa, 10G PON, and broad-based Protection platforms.
Record net sales of $194.9 million, an increase of 5% sequentially and 27% year-over-year.
Record GAAP and non-GAAP gross margin of 63.5% and 63.8%, respectively.
Record GAAP and non-GAAP diluted earnings per share of $0.53 and $0.74, respectively.
Record operating cash flow of $66.5 million or 34.1% of Q3 FY2022 net sales.
Semtech
Semtech
Forward Guidance
The company expects net sales to be in the range of $184.0 million to $194.0 million and Non-GAAP diluted earnings per share are expected to be in the range of $0.65 to $0.73 for Q4 2022.
Positive Outlook
- GAAP Gross margin is expected to be in the range of 63.1% to 64.1%
- GAAP SG&A expense is expected to be in the range of $44.0 million to $45.0 million
- GAAP R&D expense is expected to be in the range of $36.6 million to $37.6 million
- GAAP Intangible amortization expense is expected to be approximately $1.0 million
- GAAP Interest and other expense, net is expected to be approximately $1.5 million
Challenges Ahead
- Potential negative impact to the Company of the ongoing supply chain constraints and any associated disruptions
- Potential negative impact of the COVID-19 pandemic on the Company's business operations, net sales and operating results
- Export restrictions may negatively impact the Company’s results of operations from its inability to ship certain products and provide certain support services
- GAAP Effective tax rate is expected to be in the range of 16% to 18%
- GAAP Diluted earnings per share are expected to be in the range of $0.42 to $0.50