Semtech Announces Third Quarter of Fiscal Year 2024 Results

Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems and cloud connectivity service provider, today reported unaudited financial results for its third quarter of fiscal year 2024, which ended October 29, 2023.

"While recognizing ongoing constraints in our hardware business and effects of elevated channel inventories, we noted stabilization of end market demand for our semiconductor business," said Paul H. Pickle, Semtech's president and chief executive officer. "Notably, end market demand in the third quarter for high-end consumer and data center applications has grown both sequentially and year-over-year."

"We continue to optimize our cost structure with non-GAAP operating expenses and non-GAAP interest expense each forecasted to sequentially improve in the fourth quarter," said Mark Lin, Semtech's executive vice president and chief financial officer. "Our recent change in capital structure further provides us with flexibility to address near-term challenges from the current economic environment."

Third Quarter of Fiscal Year 2024 Results

	GAAP Financial Results												Non-GAAP Financial Results
(in millions, except per share data)	Q324				Q224				Q323				Q324				Q224				Q323
Net sales	$	200.9			$	238.4			$	177.6			$	200.9			$	238.4			$	177.6
Gross margin		46.3	%			42.3	%			64.5	%			51.3	%			49.6	%			65.5	%
Operating costs and expenses, net	$	105.3			$	400.8			$	77.2			$	82.5			$	85.7			$	68.0
Operating (loss) income	$	(12.4	)		$	(300.1	)		$	37.4			$	20.5			$	32.4			$	48.3
Operating margin		(6.2	)%			(125.9	)%			21.0	%			10.2	%			13.6	%			27.2	%
Interest expense, net	$	27.7			$	23.5			$	8.2			$	22.3			$	21.2			$	1.0
Diluted (loss) earnings per share	$	(0.60	)		$	(5.97	)		$	0.36			$	0.02			$	0.13			$	0.65
Adjusted EBITDA													$	28.1			$	39.0			$	54.6

To facilitate a more complete understanding of comparable financial performance between periods, the Company also presents performance results that exclude certain non-cash items and items that are not considered reflective of the Company's core results over time. These non-GAAP financial measures exclude certain items and are described below under, "Non-GAAP Financial Measures." See also our non-GAAP financial measures and reconciliations of these measures to the most comparable GAAP measures set forth in the tables below under "Supplemental Information: Reconciliation of GAAP to Non-GAAP Results."

Fourth Quarter of Fiscal Year 2024 Outlook

(in millions, except per share data)
Net sales	$	190.0		+/-		$10.0
Non-GAAP Financial Measures
Gross margin		48.0%		+/-		100 bps
Operating costs and expenses, net	$	74.0		+/-		$2.0
Operating income	$	17.2		+/-		$4.7
Operating margin		9.1%		+/-		200 bps
Interest expense, net	$	21.0
Normalized income tax rate		12%
Diluted (loss) per share	$	(0.05)		+/-		$0.06
Adjusted EBITDA	$	24.7		+/-		$4.7
Diluted share count		64.4

The fourth quarter of fiscal year 2024 outlook incorporates the Company's current estimates, as well as its expectations regarding the impact of export restrictions, inflationary pressure and other macroeconomic conditions. The Company is unable to predict the full impact such challenges may have on its future results of operations.

The Company is unable to include a reconciliation of the forward-looking non-GAAP results to the corresponding GAAP measures as this is not available without unreasonable efforts due to the high variability and low visibility with respect to the impact of transaction, integration and restructuring expenses, share-based awards, amortization of acquisition-related intangible assets and other items that are excluded from these non-GAAP measures. The Company expects the variability of the above charges to have a potentially significant impact on its GAAP financial results.

Webcast and Conference Call

Semtech will be hosting a conference call today to discuss its third fiscal quarter 2024 results at 2:00 p.m. Pacific time. The dial-in number for the call is [phone]. Please use conference ID 13736083. An audio webcast and supplemental earnings materials for the quarter will be available on the Investor Relations section of Semtech's website at investors.semtech.com under "News & Events." A replay of the call will be available through January 3, 2024 at the same website or by calling [phone] and entering conference ID 13736083.

Non-GAAP Financial Measures

To supplement the Company's consolidated financial statements prepared in accordance with GAAP, this release includes a presentation of select non-GAAP financial measures. The Company's non-GAAP measures of gross margin, SG&A expense, R&D expense, operating costs and expenses, net, operating income or loss, operating margin, interest expense, net, diluted (loss) earnings per share, and normalized tax rate exclude the following items, if any, as set forth in the reconciliations in the tables below under "Supplemental Information: Reconciliation of GAAP to Non-GAAP Results:"

• Share-based compensation
• Intangible amortization
• Transaction and integration related costs or recoveries (including costs associated with the acquisition of Sierra Wireless)
• Restructuring and other reserves, including cumulative other reserves associated with historical activity including environmental and pension
• Litigation costs or dispute settlement charges or recoveries
• Gain on sale of business
• Equity method income or loss
• Investment gains, losses, reserves and impairments, including interest income from debt investments
• Write-off and amortization of deferred financing costs
• Debt commitment fee
• Goodwill impairment
• Amortization of inventory step-up

Effective as of the third quarter of fiscal year 2024, the Company's non-GAAP measures have been adjusted to exclude amortization of deferred financing costs, which had the impact of decreasing non-GAAP interest expense, net and increasing non-GAAP net income or loss attributable to common stockholders and non-GAAP earnings or loss per diluted share. This adjustment was applied retrospectively and all prior period amounts have been revised to conform to the current presentation.

To provide additional insight into the Company's fourth quarter outlook, this release also includes a presentation of forward-looking non-GAAP financial measures. In the financial statements provided with this release, the Company also presents Adjusted EBITDA and free cash flow. Adjusted EBITDA is defined as net (loss) income plus interest expense, interest income, income taxes, depreciation and amortization and share-based compensation, and adjusted to exclude certain expenses, gains and losses that the Company believes are not indicative of its core results over time. The Company considers free cash flow, which may be positive or negative, a non-GAAP financial measure defined as cash flows provided by (used in) operating activities less net capital expenditures. Management believes that the presentation of these non-GAAP measures provides useful information to investors regarding the Company's financial condition and results of operations. These non-GAAP financial measures are adjusted to exclude the items identified above because such items are either operating expenses that would not otherwise have been incurred by the Company in the normal course of the Company's business operations, or are not reflective of the Company's core results over time. These excluded items may include recurring as well as non-recurring items, and no inference should be made that all of these adjustments, charges, costs or expenses are unusual, infrequent or non-recurring. For example: certain restructuring and integration-related expenses (which consist of employee termination costs, facility closure or lease termination costs, and contract termination costs) may be considered recurring given the Company’s ongoing efforts to be more cost effective and efficient; certain acquisition and disposition-related adjustments or expenses may be deemed recurring given the Company's regular evaluation of potential transactions and investments; and certain litigation expenses or dispute settlement charges or gains (which may include estimated losses for which the Company may have established a reserve, as well as any actual settlements, judgments, or other resolutions against, or in favor of, the Company related to litigation, arbitration, disputes or similar matters, and insurance recoveries received by the Company related to such matters) may be viewed as recurring given that the Company may from time to time be involved in, and may resolve, litigation, arbitration, disputes, and similar matters.

Notwithstanding that certain adjustments, charges, costs or expenses may be considered recurring, in order to provide meaningful comparisons, the Company believes that it is appropriate to exclude such items because they are not reflective of the Company's core results and tend to vary based on timing, frequency and magnitude.

These non-GAAP financial measures are provided to enhance the user's overall understanding of the Company's comparable financial performance between periods. In addition, the Company's management generally excludes the items noted above when managing and evaluating the performance of the business.

The financial statements provided with this release include reconciliations of these non-GAAP financial measures to their most comparable GAAP measures for the second and third quarters of fiscal year 2024 and the third quarter of fiscal year 2023. The Company adopted a full-year, normalized tax rate for the computation of the non-GAAP income tax provision in order to provide better comparability across the interim reporting periods by reducing the quarterly variability in non-GAAP tax rates that can occur throughout the year. In estimating the full-year non-GAAP normalized tax rate, the Company utilized a full-year financial projection that considers multiple factors such as changes to the Company's current operating structure, existing positions in various tax jurisdictions, the effect of key tax law changes, and other significant tax matters to the extent they are applicable to the full fiscal year financial projection. In addition to the adjustments described above, this normalized tax rate excludes the impact of share-based awards and the amortization of acquisition-related intangible assets. For fiscal year 2024, the Company's projected non-GAAP normalized tax rate is 12% and will be applied to each quarter of fiscal year 2024. The Company's non-GAAP normalized tax rate on non-GAAP net income may be adjusted during the year to account for events or trends that the Company believes materially impact the original annual non-GAAP normalized tax rate including, but not limited to, significant changes resulting from tax legislation, acquisitions, entity structures or operational changes and other significant events. These additional non-GAAP financial measures should not be considered substitutes for any measures derived in accordance with GAAP and may be inconsistent with similar measures presented by other companies.

Forward-Looking and Cautionary Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on the Company's current expectations, estimates and projections about its operations, industry, financial condition, performance, results of operations, and liquidity. Forward-looking statements are statements other than historical information or statements of current condition and relate to matters such as future financial performance including the fourth quarter of fiscal year 2024 outlook; the Company's expectations concerning the negative impact on the Company's results of operations from export restrictions, inflationary pressure and other macroeconomic conditions; future operational performance; the anticipated impact of specific items on future earnings; the Company's expectations regarding its cost structure optimization; benefits from the Company's change in capital structure; and the Company's plans, objectives and expectations. Statements containing words such as "may," "believes," "anticipates," "expects," "intends," "plans," "projects," "estimates," "should," "will," "designed to," "projections," or "business outlook," or other similar expressions constitute forward-looking statements.

Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and events to differ materially from those projected. Potential factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the Company's ability to comply with, or pursue business strategies due to the covenants under the agreements governing its indebtedness; the Company's ability to forecast and achieve anticipated net sales and earnings estimates in light of periodic economic uncertainty; the inherent risks, costs and uncertainties associated with integrating Sierra Wireless successfully and risks of not achieving all or any of the anticipated benefits, or the risk that the anticipated benefits may not be fully realized or take longer to realize than expected; the uncertainty surrounding the impact and duration of supply chain constraints and any associated disruptions; export restrictions and laws affecting the Company's trade and investments, and tariffs or the occurrence of trade wars; worldwide economic and political disruptions, including as a result of inflation and current geopolitical conflicts; tightening credit conditions related to the United States banking system concerns; competitive changes in the marketplace including, but not limited to, the pace of growth or adoption rates of applicable products or technologies; downturns in the business cycle; decreased average selling prices of the Company's products; the Company's reliance on a limited number of suppliers and subcontractors for components and materials; changes in projected or anticipated end-user markets; future responses to and effects of public health crises; and the Company's ability to forecast its annual non-GAAP normalized tax rate due to material changes that could occur during the fiscal year, which could include, but are not limited to, significant changes resulting from tax legislation, acquisitions, entity structures or operational changes and other significant events. Additionally, forward-looking statements should be considered in conjunction with the cautionary statements contained in the risk factors disclosed in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 2023, filed with the SEC on March 30, 2023, and the Company's Quarterly Report on Form 10-Q for the quarter ended July 30, 2023, filed with the SEC on September 13, 2023, as such risk factors may be amended, supplemented or superseded from time to time by subsequent reports the Company files with the SEC. In light of the significant risks and uncertainties inherent in the forward-looking information included herein that may cause actual performance and results to differ materially from those predicted, any such forward-looking information should not be regarded as representations or guarantees by the Company of future performance or results, or that its objectives or plans will be achieved or that any of its operating expectations or financial forecasts will be realized. Reported results should not be considered an indication of future performance. Investors are cautioned not to place undue reliance on any forward-looking information contained herein, which reflect management's analysis only as of the date hereof. Except as required by law, the Company assumes no obligation to publicly release the results of any update or revision to any forward-looking statements that may be made to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated or future events, or otherwise.

About Semtech

Semtech Corporation (Nasdaq: SMTC) is a high-performance semiconductor, IoT systems and cloud connectivity service provider dedicated to delivering high-quality technology solutions that enable a smarter, more connected and sustainable planet. Our global teams are committed to empowering solution architects and application developers to develop breakthrough products for the infrastructure, industrial and consumer markets. To learn more about Semtech technology, visit us at Semtech.com or follow us on LinkedIn or X.

Semtech and the Semtech logo are registered trademarks or service marks of Semtech Corporation or its subsidiaries.

SMTC-F

SEMTECH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
	Three Months Ended												Nine Months Ended
	October 29, 2023				July 30, 2023				October 30, 2022				October 29, 2023				October 30, 2022
	Q324				Q224				Q323				Q324				Q323
Net sales	$	200,899			$	238,372			$	177,618			$	675,810			$	589,021
Cost of sales		97,925				127,071				62,049				347,734				207,380
Amortization of acquired technology		10,008				10,573				1,000				31,436				3,096
Total cost of sales		107,933				137,644				63,049				379,170				210,476
Gross profit		92,966				100,728				114,569				296,640				378,545
Operating costs and expenses, net:
Selling, general and administrative		47,663				59,579				40,227				165,022				131,710
Product development and engineering		46,911				47,433				35,056				144,945				114,446
Intangible amortization		4,853				4,871				—				14,606				—
Gain on sale of business		—				—				(327	)			—				(18,313	)
Restructuring		3,646				9,399				2,244				14,608				2,244
Goodwill impairment		2,266				279,555				—				281,821				—
Total operating costs and expenses, net		105,339				400,837				77,200				621,002				230,087
Operating (loss) income		(12,373	)			(300,109	)			37,369				(324,362	)			148,458
Interest expense		(28,305	)			(24,171	)			(9,009	)			(72,986	)			(11,465	)
Interest income		574				674				839				2,317				1,758
Non-operating income (expense), net		3,542				(1,566	)			(64	)			1,503				(596	)
Investment impairments and credit loss reserves, net		(1,990	)			(227	)			(29	)			(2,250	)			376
(Loss) income before taxes and equity method (loss) income		(38,552	)			(325,399	)			29,106				(395,778	)			138,531
(Benefit) provision for income taxes		(311	)			56,592				6,327				53,864				26,415
Net (loss) income before equity method (loss) income		(38,241	)			(381,991	)			22,779				(449,642	)			112,116
Equity method (loss) income		(11	)			(12	)			(36	)			(30	)			271
Net (loss) income		(38,252	)			(382,003	)			22,743				(449,672	)			112,387
Net loss attributable to noncontrolling interest		(2	)			(1	)			(3	)			(5	)			(6	)
Net (loss) income attributable to common stockholders	$	(38,250	)		$	(382,002	)		$	22,746			$	(449,667	)		$	112,393
(Loss) earnings per share:
Basic	$	(0.60	)		$	(5.97	)		$	0.36			$	(7.02	)		$	1.76
Diluted	$	(0.60	)		$	(5.97	)		$	0.36			$	(7.02	)		$	1.76
Weighted average number of shares used in computing (loss) earnings per share:
Basic		64,216				64,005				63,764				64,048				63,738
Diluted		64,216				64,005				63,855				64,048				64,040

SEMTECH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
	October 29, 2023			January 29, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	123,820		$	235,510
Accounts receivable, net		156,613			161,695
Inventories		160,586			207,704
Prepaid taxes		10,193			6,243
Other current assets		121,192			111,634
Total current assets		572,404			722,786
Non-current assets:
Property, plant and equipment, net		158,834			169,293
Deferred tax assets		13,597			63,783
Goodwill		1,013,679			1,281,703
Other intangible assets, net		168,230			215,102
Other assets		111,385			116,961
Total assets	$	2,038,129		$	2,569,628
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	55,008		$	100,676
Accrued liabilities		183,989			253,075
Current portion of long-term debt		—			43,104
Total current liabilities		238,997			396,855
Non-current liabilities:
Deferred tax liabilities		4,526			5,065
Long-term debt		1,373,618			1,296,966
Other long-term liabilities		86,549			114,707
Stockholders’ equity		334,261			755,852
Noncontrolling interest		178			183
Total liabilities & equity	$	2,038,129		$	2,569,628

SEMTECH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND SUPPLEMENTAL INFORMATION
(in thousands)
(unaudited)
					Nine Months Ended
					October 29, 2023				October 30, 2022
Net (loss) income					$	(449,672	)		$	112,387
Net cash (used in) provided by operating activities						(107,839	)			145,510
Net cash used in investing activities						(26,266	)			(761	)
Net cash provided by financing activities						24,337				193,451
Effect of foreign exchange rate changes on cash and cash equivalents						(1,922	)			—
Net (decrease) increase in cash and cash equivalents						(111,690	)			338,200
Cash and cash equivalents at beginning of period						235,510				279,601
Cash and cash equivalents at end of period					$	123,820			$	617,801
	Three Months Ended
	October 29, 2023				July 30, 2023				October 30, 2022
	Q324				Q224				Q323
Free cash flow:
Cash flow from operations	$	(5,847	)		$	(12,005	)		$	18,181
Net capital expenditures		(6,576	)			(6,920	)			(7,060	)
Free cash flow	$	(12,423	)		$	(18,925	)		$	11,121

							Three Months Ended
	October 29, 2023						July 30, 2023						October 30, 2022
	Q324						Q224						Q323
Net sales by reportable segment:
Signal Integrity	$	48,737		24	%		$	46,507		20	%		$	76,705		43	%
Advanced Protection and Sensing		50,569		25	%			48,521		20	%			51,225		29	%
IoT Systems		77,373		39	%			119,455		50	%			49,688		28	%
IoT Connected Services		24,220		12	%			23,889		10	%			—		—	%
Total net sales by reportable segment	$	200,899		100	%		$	238,372		100	%		$	177,618		100	%

	Three Months Ended
	October 29, 2023						July 30, 2023						October 30, 2022
	Q324						Q224						Q323
Net sales by end market:
Infrastructure	$	43,191		21	%		$	42,369		18	%		$	70,475		39	%
High-End Consumer		37,553		19	%			34,016		14	%			34,662		20	%
Industrial		120,155		60	%			161,987		68	%			72,481		41	%
Total net sales by end market	$	200,899		100	%		$	238,372		100	%		$	177,618		100	%

SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(in thousands, except per share data)
(unaudited)
	Three Months Ended												Nine Months Ended
	October 29, 2023				July 30, 2023				October 30, 2022				October 29, 2023				October 30, 2022
	Q324				Q224				Q323				Q324				Q323
Gross margin (GAAP)		46.3	%			42.3	%			64.5	%			43.9	%			64.3	%
Share-based compensation		0.3	%			0.2	%			0.4	%			0.2	%			0.4	%
Amortization of acquired technology		5.0	%			4.4	%			0.5	%			4.7	%			0.5	%
Transaction and integration related costs, net		(0.3	)%			1.1	%			—	%			0.3	%			—	%
Restructuring and other reserves, net		—	%			0.2	%			0.1	%			0.1	%			—	%
Amortization of inventory step-up		—	%			1.4	%			—	%			0.5	%			—	%
Adjusted gross margin (Non-GAAP)		51.3	%			49.6	%			65.5	%			49.7	%			65.2	%
	Three Months Ended												Nine Months Ended
	October 29, 2023				July 30, 2023				October 30, 2022				October 29, 2023				October 30, 2022
	Q324				Q224				Q323				Q324				Q323
Selling, general and administrative (GAAP)	$	47,663			$	59,579			$	40,227			$	165,022			$	131,710
Share-based compensation		(3,059	)			(9,409	)			1,028				(16,970	)			(13,692	)
Transaction and integration related costs, net		(5,936	)			(7,271	)			(4,902	)			(20,275	)			(9,528	)
Environmental reserve		—				—				—				—				(500	)
Litigation costs, net		(25	)			(132	)			97				(183	)			(99	)
Adjusted selling, general and administrative (Non-GAAP)	$	38,643			$	42,767			$	36,450			$	127,594			$	107,891
	Three Months Ended												Nine Months Ended
	October 29, 2023				July 30, 2023				October 30, 2022				October 29, 2023				October 30, 2022
	Q324				Q224				Q323				Q324				Q323
Product development and engineering (GAAP)	$	46,911			$	47,433			$	35,056			$	144,945			$	114,446
Share-based compensation		(2,972	)			(3,465	)			(3,480	)			(9,976	)			(11,518	)
Transaction and integration related costs, net		(66	)			(1,016	)			—				(1,616	)			—
Adjusted product development and engineering (Non-GAAP)	$	43,873			$	42,952			$	31,576			$	133,353			$	102,928

	Three Months Ended												Nine Months Ended
	October 29, 2023				July 30, 2023				October 30, 2022				October 29, 2023				October 30, 2022
	Q324				Q224				Q323				Q324				Q323
Operating cost and expense (GAAP)	$	105,339			$	400,837			$	77,200			$	621,002			$	230,087
Share-based compensation		(6,031	)			(12,874	)			(2,452	)			(26,946	)			(25,210	)
Intangible amortization		(4,853	)			(4,871	)			—				(14,606	)			—
Transaction and integration related costs, net		(6,002	)			(8,287	)			(4,902	)			(21,891	)			(9,528	)
Restructuring and other reserves		(3,646	)			(9,399	)			(2,244	)			(14,608	)			(2,744	)
Litigation costs, net		(25	)			(132	)			97				(183	)			99
Gain on sale of business		—				—				327				—				18,313
Goodwill Impairment		(2,266	)			(279,555	)			—				(281,821	)			—
Adjusted operating cost and expense (Non-GAAP)	$	82,516			$	85,719			$	68,026			$	260,947			$	211,017

SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)
(in thousands, except per share data)
(unaudited)
	Three Months Ended												Nine Months Ended
	October 29, 2023				July 30, 2023				October 30, 2022				October 29, 2023				October 30, 2022
	Q324				Q224				Q323				Q324				Q323
Operating (loss) income (GAAP)	$	(12,373	)		$	(300,109	)		$	37,369			$	(324,362	)		$	148,458
Share-based compensation		6,538				13,399				3,085				28,341				27,228
Intangible amortization		14,861				15,444				1,000				46,042				3,096
Transaction and integration related costs, net		5,507				10,952				4,902				24,110				9,528
Restructuring and other reserves, net		3,646				9,761				2,372				15,467				2,872
Litigation costs, net		25				132				(97	)			183				99
Gain on sale of business		—				—				(327	)			—				(18,313	)
Goodwill impairment		2,266				279,555				—				281,821				—
Amortization of inventory step-up		—				3,314				—				3,314				—
Adjusted operating income (Non-GAAP)	$	20,470			$	32,448			$	48,304			$	74,916			$	172,968

	Three Months Ended												Nine Months Ended
	October 29, 2023				July 30, 2023				October 30, 2022				October 29, 2023				October 30, 2022
	Q324				Q224				Q323				Q324				Q323
Operating margin (GAAP)		(6.2	)%			(125.9	)%			21.0	%			(48.0	)%			25.2	%
Share-based compensation		3.3	%			5.6	%			1.8	%			4.2	%			4.7	%
Intangible amortization		7.4	%			6.5	%			0.6	%			6.8	%			0.5	%
Transaction and integration related costs, net		2.8	%			4.6	%			2.8	%			3.6	%			1.6	%
Restructuring and other reserves, net		1.8	%			4.1	%			1.3	%			2.3	%			0.5	%
Litigation costs, net		—	%			0.1	%			(0.1	)%			—	%			—	%
Gain on sale of business		—	%			—	%			(0.2	)%			—	%			(3.1	)%
Goodwill impairment		1.1	%			117.2	%			—	%			41.7	%			—	%
Amortization of inventory step-up		—	%			1.4	%			—	%			0.5	%			—	%
Adjusted operating margin (Non-GAAP)		10.2	%			13.6	%			27.2	%			11.1	%			29.4	%

	Three Months Ended												Nine Months Ended
	October 29, 2023				July 30, 2023				October 30, 2022				October 29, 2023				October 30, 2022
	Q324				Q224				Q323				Q324				Q323
Interest expense, net (GAAP)	$	27,731			$	23,497			$	8,170			$	70,669			$	9,707
Amortization of deferred financing costs		(1,837	)			(1,689	)			(279	)			(4,940	)			(520	)
Write-off of deferred financing costs		(3,675	)			(771	)			—				(4,446	)			—
Debt commitment fee		—				—				(7,255	)			—				(7,255	)
Investment income		103				178				335				631				1,055
Adjusted interest expense, net (Non-GAAP)	$	22,322			$	21,215			$	971			$	61,914			$	2,987

SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)
(in thousands, except per share data)
(unaudited)
	Three Months Ended												Nine Months Ended
	October 29, 2023				July 30, 2023				October 30, 2022				October 29, 2023				October 30, 2022
	Q324				Q224				Q323				Q324				Q323
GAAP net (loss) income attributable to common stockholders	$	(38,250	)		$	(382,002	)		$	22,746			$	(449,667	)		$	112,393
Adjustments to GAAP net (loss) income attributable to common stockholders:
Share-based compensation		6,538				13,399				3,085				28,341				27,228
Intangible amortization		14,861				15,444				1,000				46,042				3,096
Transaction and integration related costs, net		5,507				10,952				4,902				24,110				9,528
Restructuring and other reserves, net		3,646				9,761				2,372				15,467				2,872
Litigation costs, net		25				132				(97	)			183				99
Gain on sale of business		—				—				(327	)			—				(18,313	)
Investment losses (gains), reserves and impairments, net		1,887				49				(306	)			1,619				(1,431	)
Amortization of deferred financing costs		1,837				1,689				279				4,940				520
Write-off of deferred financing costs		3,675				771				—				4,446				—
Debt commitment fee		—				—				7,255				—				7,255
Goodwill impairment		2,266				279,555				—				281,821				—
Amortization of inventory step-up		—				3,314				—				3,314				—
Total Non-GAAP adjustments before taxes		40,242				335,066				18,163				410,283				30,854
Associated tax effect		(514	)			55,432				655				52,123				6,089
Equity method loss (income)		11				12				36				30				(271	)
Total of supplemental information, net of taxes		39,739				390,510				18,854				462,436				36,672
Non-GAAP net income attributable to common stockholders	$	1,489			$	8,508			$	41,600			$	12,769			$	149,065
GAAP diluted (loss) earnings per share	$	(0.60	)		$	(5.97	)		$	0.36			$	(7.02	)		$	1.76
Adjustments per above		0.62				6.10				0.29				7.22				0.57
Non-GAAP diluted earnings per share	$	0.02			$	0.13			$	0.65			$	0.20			$	2.33
Weighted-average number of shares used in computing diluted (loss) earnings per share:
GAAP		64,216				64,005				63,855				64,048				64,040
Non-GAAP		64,304				64,104				63,855				64,135				64,040

SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)
(in thousands, except per share data)
(unaudited)
	Three Months Ended												Nine Months Ended
	October 29, 2023				July 30, 2023				October 30, 2022				October 29, 2023				October 30, 2022
	Q324				Q224				Q323				Q324				Q323
GAAP net (loss) income attributable to common stockholders	$	(38,250	)		$	(382,002	)		$	22,746			$	(449,667	)		$	112,393
Interest expense		28,305				24,171				9,009				72,986				11,465
Interest income		(574	)			(674	)			(839	)			(2,317	)			(1,758	)
Non-operating (expense) income, net		(3,542	)			1,566				64				(1,503	)			596
Investment impairments and credit loss reserves, net		1,990				227				29				2,250				(376	)
Provision (benefit) for income taxes		(311	)			56,592				6,327				53,864				26,415
Equity in net gains (losses) of equity method investments		11				12				36				30				(271	)
Net loss attributable to noncontrolling interest		(2	)			(1	)			(3	)			(5	)			(6	)
Share-based compensation		6,538				13,399				3,085				28,341				27,228
Depreciation and amortization		22,539				22,042				7,323				69,104				22,321
Transaction and integration related costs, net		5,507				10,952				4,902				24,110				9,528
Restructuring and other reserves, net		3,646				9,761				2,372				15,467				2,872
Litigation costs, net		25				132				(97	)			183				99
Gain on sale of business		—				—				(327	)			—				(18,313	)
Goodwill impairment		2,266				279,555				—				281,821				—
Amortization of inventory step-up		—				3,314				—				3,314				—
Adjusted EBITDA	$	28,148			$	39,046			$	54,627			$	97,978			$	192,193

 

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The Semtech Stock at the time of publication of the news with a raise of 0,00 % to 15,55USD on Lang & Schwarz stock exchange (06. Dezember 2023, 22:15 Uhr).