Semtech (SMTC) Tops Q3 EPS by 1c, Revenues Beat; Offers Q4 EPS Mid-Point Guidance Below Consensus

Semtech (NASDAQ: SMTC) reported Q3 EPS of $0.41, $0.01 better than the analyst estimate of $0.40. Revenue for the quarter came in at $141 million versus the consensus estimate of $140.41 million.

Results on a Non-GAAP basis for the Third Fiscal Quarter 2020 (see the list of non-GAAP items and the reconciliation of these to the most relevant GAAP items set forth in the tables below):

• Non-GAAP Gross margin was 61.6%
• Non-GAAP SG&A expense was $28.5 million
• Non-GAAP R&D expense was $24.4 million
• Non-GAAP Operating margin was 24.0%
• Non-GAAP Net income was $27.4 million or $0.41 per diluted share

Mohan Maheswaran, Semtech’s President and Chief Executive Officer, stated, “Fiscal Q3 represented another quarter of solid Q/Q growth driven by a strong recovery in demand for our PON products, and higher demand for our LoRa© and our hyper scale data center platforms. Despite the macro headwinds and geopolitical uncertainty, the channel is healthy and we believe the secular drivers behind our key platforms in IoT, data center and mobile devices should position the Company to return to growth in fiscal 2021.”

GUIDANCE:

Semtech sees Q4 2020 EPS of $0.33-$0.39, versus the consensus of $0.39.

Non-GAAP Fourth Fiscal Quarter 2020 Outlook (see the list of non-GAAP items and the reconciliation of these to the most comparable GAAP items set forth in the tables below)

• Non-GAAP Gross margin is expected to be in the range of 61.0% to 62.0%
• Non-GAAP SG&A expense is expected to be in the range of $28.0 million to $29.0 million
• Non-GAAP R&D expense is expected to be in the range of $24.0 million to $25.0 million
• Non-GAAP Interest and other expense, net is expected to be approximately $1.5 million
• Non-GAAP Effective tax rate is expected to be in the range of 13% to 17%
• Non-GAAP Earnings per diluted share are expected to be in the range of $0.33 to $0.39

For earnings history and earnings-related data on Semtech (SMTC) click here.

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