•
Oct 30, 2022

Semtech Q3 2023 Earnings Report

Reported unaudited financial results, featuring a net sales decrease and record gross margins.

Key Takeaways

Semtech reported a decrease in net sales but achieved record GAAP and non-GAAP gross margins. The company is cooperating with the DOJ on the proposed acquisition of Sierra Wireless and issued convertible senior notes.

Net sales decreased by 15.1% sequentially and 8.9% year-over-year, reaching $177.6 million.

GAAP gross margin reached a record 65.1%, and non-GAAP gross margin also reached a record at 65.5%.

GAAP and non-GAAP diluted earnings per share were $0.36 and $0.65, respectively.

Tri-Edge was selected by a major North American Hyperscale Data Center Provider for a high volume, multi-year program.

Total Revenue
$178M
Previous year: $195M
-8.9%
EPS
$0.65
Previous year: $0.74
-12.2%
Gross Profit
$116M
Previous year: $124M
-6.6%
Cash and Equivalents
$618M
Previous year: $277M
+123.4%
Free Cash Flow
$11.1M
Previous year: $61.2M
-81.8%
Total Assets
$1.47B
Previous year: $1.12B
+30.8%

Semtech

Semtech

Forward Guidance

Semtech anticipates net sales between $145.0 million and $155.0 million for the fourth fiscal quarter of 2023. The outlook considers transaction costs for the proposed Sierra Wireless acquisition and inflationary pressures, but excludes Sierra Wireless's results.