Semtech Q4 2023 Earnings Report
Key Takeaways
Semtech's Q4 results exceeded the midpoint of guidance, driven by strong performance in LoRa-enabled products and the completion of the Sierra Wireless acquisition. Despite a challenging macroeconomic environment, the company is well-positioned for future growth with its diversified portfolio and focus on the IoT market.
Completed the acquisition of Sierra Wireless for $1.3 billion.
Semtech Organic net sales reached $152.5 million, surpassing the midpoint of guidance.
Sierra Wireless contributed $15.0 million in net sales post-acquisition.
LoRa-enabled net sales totaled $40.8 million.
Semtech
Semtech
Forward Guidance
Semtech anticipates net sales between $230.0 million and $240.0 million for the first quarter of fiscal year 2024. The non-GAAP diluted loss per share is expected to be in the range of $(0.11) to $(0.04).
Positive Outlook
- Net sales are expected to be in the range of $230.0 million to $240.0 million.
- GAAP Gross margin is expected to be in the range of 42.5% to 44.7%.
- Non-GAAP Gross margin is expected to be in the range of 47.5% to 49.5%.
- Non-GAAP SG&A expense is expected to be in the range of $47.0 million to $49.0 million.
- Non-GAAP R&D expense is expected to be in the range of $50.0 million to $52.0 million.
Challenges Ahead
- Export restrictions, inflationary pressure and other macroeconomic conditions may impact results.
- GAAP SG&A expense is expected to be in the range of $68.9 million to $70.9 million.
- GAAP R&D expense is expected to be in the range of $53.5 million to $55.5 million.
- GAAP Intangible amortization expense is expected to be approximately $15.8 million.
- Non-GAAP Diluted loss per share is expected to be in the range of $(0.11) to $(0.04).