Semtech Q4 2022 Earnings Report
Key Takeaways
Semtech announced record financial performance in fiscal year 2022, driven by investments in disruptive technologies that enable low-power solutions for remote sensing and analytics for the Internet of Things (IoT), bandwidth expansion, and reduction of electronic waste.
Net sales of $190.6 million, GAAP diluted EPS of $0.53 and non-GAAP diluted EPS of $0.70
Record GAAP and non-GAAP gross margins grew 310bps and 300bps, respectively, year-over-year
Operating cash flow of $51.0 million or 26.8% of net sales
Record LoRa-enabled net sales of $41.7 million
Semtech
Semtech
Forward Guidance
The company provided GAAP and non-GAAP outlook for the first quarter of fiscal year 2023, taking into account potential negative impacts from supply chain constraints, the COVID-19 pandemic, and export restrictions.
Positive Outlook
- Net sales are expected to be in the range of $195.0 million to $205.0 million
- GAAP Gross margin is expected to be in the range of 63.8% to 64.8%
- GAAP SG&A expense is expected to be in the range of $43.2 million to $44.2 million
- GAAP R&D expense is expected to be in the range of $39.0 million to $40.0 million
- GAAP Diluted earnings per share is expected to be in the range of $0.50 to $0.58
Challenges Ahead
- Uncertainty surrounding the impact and duration of supply chain constraints and any associated disruptions
- Uncertainty surrounding the impact and duration of the COVID-19 pandemic
- Export restrictions and laws affecting the Company's trade and investments including with respect to Huawei
- Worldwide economic and political disruptions as a result of the current conflict between Russia and Ukraine
- The Company’s ability to forecast its annual non-GAAP normalized tax rate due to material changes that could occur during the fiscal year