Semtech (SMTC) Tops Q1 EPS by 3c, Revenues Beat; Offers 2Q EPS/Revenue Guidance Above Consensus
Semtech (NASDAQ: SMTC) reported Q1 EPS of $0.35, $0.03 better than the analyst estimate of $0.32. Revenue for the quarter came in at $132.7 million versus the consensus estimate of $129.28 million.
Highlights for the First Fiscal Quarter 2021
- Q1 FY2021 net sales of $132.7 million
- Q1 FY2021 GAAP EPS of $0.15 and non-GAAP EPS of $0.35
- Net bookings grew 22% sequentially led by record bookings for our LoRa®-enabled, 100G data center CDRs and broad-based Protection devices
- Distributor Point of Sale (POS) increased 5% sequentially and represented a new quarterly record
- Cash flow from operations was $26.1 million or 20% of net sales
- Repurchased approximately 855,000 shares for $30.0 million during Q1 FY2021
Results on a Non-GAAP basis for the First Fiscal Quarter 2021 (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 was 61.3%
- Non-GAAP SG&A expense was $28.4 million
- Non-GAAP R&D expense was $24.8 million
- Non-GAAP Operating margin was 21.2%
- Non-GAAP Net income attributable to common stockholders was $23.0 million or $0.35 per diluted share
Mohan Maheswaran, Semtech’s President and Chief Executive Officer, stated, “We are pleased with our strong Q1 results and execution, despite the unexpected disruptions from COVID-19. Our secular growth drivers in the IoT, hyperscale data center, and mobility markets remain intact as evidenced by our record quarterly POS results and strong sequential and year-over-year bookings growth. While we are not immune from macroeconomic headwinds, we believe the greater demands being placed on the global communications infrastructure with the shift to work-from-home and the increasing use of long range sensing platforms, should benefit our targeted markets including the data center, PON, 5G wireless and IoT markets.” Maheswaran continued, “The safety of our employees, customers and business partners is paramount and we are confident that our prior investments in IT and Operational infrastructure, along with our fabless model and our ability to generate cash, positions us to continue to successfully execute our plan through an uncertain macro environment.”
GUIDANCE:
Semtech sees Q2 2021 EPS of $0.40-$0.44, versus the consensus of $0.35. Semtech sees Q2 2021 revenue of $138-146 million, versus the consensus of $132.65 million.
Second Fiscal Quarter 2021 Outlook
Both the GAAP and non-GAAP second fiscal quarter 2021 outlook below take into account, based on the Company's current estimates, the anticipated, but uncertain, negative impact to the Company of the coronavirus (COVID-19) pandemic on global economic conditions and on the Company's business operations, sales and operating results, as well as export restrictions pertaining to Huawei and certain of its affiliates imposed by the U.S. government. The Company is unable to predict the full impact such challenges may have on its future results of operations.
GAAP Second Fiscal Quarter 2021 Outlook
- Net sales are expected to be in the range of $138.0 million to $146.0 million
- GAAP Gross margin is expected to be in the range of 60.8% to 61.6%
- GAAP SG&A expense is expected to be in the range of $37.0 million to $38.0 million
- GAAP R&D expense is expected to be in the range of $27.5 million to $28.5 million
- GAAP Intangible amortization expense is expected to be approximately $2.0 million
- GAAP Interest and other expense, net is expected to be approximately $1.1 million
- GAAP Effective tax rate is expected to be in the range of 15% to 17%
- GAAP Earnings per diluted share are expected to be in the range of $0.21 to $0.26
- Fully-diluted share count is expected to be approximately 65.5 million shares
- Share-based compensation is expected to be approximately $11.5 million, categorized as follows: $0.5 million cost of sales, $8.0 million SG&A, and $3.0 million R&D
- Capital expenditures are expected to be approximately $9.0 million
- Depreciation expense is expected to be approximately $5.8 million
Non-GAAP Second Fiscal Quarter 2021 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 61.2% to 62.0%
- Non-GAAP SG&A expense is expected to be in the range of $28.5 million to $29.5 million
- Non-GAAP R&D expense is expected to be in the range of $24.5 million to $25.5 million
- Non-GAAP Interest and other expense, net is expected to be approximately $1.1 million
- Non-GAAP Effective tax rate is expected to be in the range of 15% to 17%
- Non-GAAP Earnings per diluted share are expected to be in the range of $0.40 to $0.44
For earnings history and earnings-related data on Semtech (SMTC) click here.