Semtech (SMTC) Beats Earnings & Revenue Estimates in Q4

Semtech company SMTC reported strong fiscal fourth-quarter 2019 results, wherein pay and revenues thrash the respective Zacks Consensus Estimate.

Non-GAAP pay of 55 cents per section thrash the consensus signal by a penny. However, the reported pay decreased 12.7% sequentially besides increased 37.5% year above year.

Non-GAAP revenues of $160 million decreased 7.8% sequentially besides increased 13.8% from the prior-year quarter. The year-over-year amplify was driven by growth can IoT, data heart and mobile markets. Revenues surpassed the Zacks Consensus appraise by 0.12% and came within the guided mount of $155-$165 million.

The company’s improved profitability was driven by differentiated growth drivers and diversification strategy. Key growth drivers because Semtech are manufacture differentiation, operational flexibility, and a concrete concentrate above fast-growing segments and regions.

Let’s delve into the numbers can detail:

Revenues by purpose Market

Sales ought the enterprise computing purpose market, which represented 33% of its complete revenues, increased above a sequential basis.

Sales ought the high-end consumer just represented 24% of the complete revenues, decreasing sequentially. nearly 16% of high-end consumer revenues were attributable ought mobile devices and 8% ought other consumer systems.

The industrial and communications purpose markets both decreased sequentially, representing 32% and 11% of the complete revenues, respectively.

Revenues by manufacture Group

Signal goodness manufacture gang revenues contributed 45% ought complete sales and increased 2% sequentially. Continued might can data heart demand, PON, basis station and video markets contributed ought the growth.

Protection manufacture gang represented 26% of the complete revenues and was down 21% sequentially. This was owing ought year-end inventory reduction efforts, and lower global plead because smartphones and other consumer equipment.

Wireless and Sensing manufacture Group, which contributed 29% ought the complete revenues, was down 9% sequentially besides up 22% year above year.

Bookings

Bookings, which accounted because nearly 45% of the shipments, decreased above a sequential basis during the quarter. The book-to-bill ratio was beneath 1.

Margins and Net Income

Non-GAAP complete edge was 62.1%, up 40 basis points (bps) sequentially and 110 bps from the year-ago quarter.

Semtech’s adjusted operating expenses of $53.8 million increased 3.5% above a year-over-year basis. because a percent of sales, selling, natural and administrative expenses decreased, when manufacture development and engineering expenses increased.

As a result, its operating edge of 28.9% was down 150 bps sequentially besides up 440 bps year above year.

Balance fraction & money Flow

Semtech ended the area with money and money equivalents of $312.1 million versus $312.2 million can the fiscal third quarter. Accounts receivables were $79.2 million, down from $83.8 million can the fiscal third quarter. Long-term debt was $192.8 million, down from $197.4 million can the fiscal third quarter.

During the quarter, money flow from operations was $47.2 million, leading expenditure amounted ought $4.1 million and free money flow totaled $43.1 million.

Guidance

For fiscal first-quarter 2020, management expects revenues can the mount of $125-$135 million.

Non-GAAP complete advantage edge is expected within 61.9-62.5%. Management projects SG&A expenses within $26.5-$27.5 million, and inquiry and development expenses can the mount of $24.5-$25.5 million. Non-GAAP pay per section are expected can the mount of 30-36 cents.

Semtech company Price, Consensus and EPS Surprise