Semtech Corporation · NASDAQ:SMTC

Semtech — Q4 2024 Earnings Presentation

24 slides from Semtech's earnings presentation, Mar 28, 2024

  1. Slide 1: Quarterly Earnings Presentation Q4 FY24

    QUARTERLY EARNINGS PRESENTATION Q4 FY24 NASDAQ: SMTC 1 |

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, which are based on the current expectations and beliefs of the Company’s management, and assumpti

  3. Slide 3: Non-GAAP Financial Measures

    Non-GAAP Financial Measures This presentation contains certain financial measures that have not been calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). The Company's non-GAAP measures of gross margin, SG&A expense, R&D expense, operating costs and expenses, net, op

  4. Slide 4: Non-GAAP Financial Measures

    Non-GAAP Financial Measures In the financial results provided in this presentation, the Company also presents Adjusted EBITDA, which is defined as net (loss) income plus interest expense, interest income, income taxes, depreciation and amortization and share-based compensation, and adjusted to exclu

  5. Slide 5: Q4'24 Quarterly Results

    mre - Saeed red Q4'24 .. QUARTERLY RESULTS Ag SEMTECH

  6. Slide 6: Q4'24 Net Sales

    Q4’24 Net Sales End market demand for our semiconductor business has progressed from stable to growing. While our hardware business remains constrained, we believe Semtech is well-positioned to benefit from near-term growth trends, particularly in our infrastructure end market. END MARKET SEGMENT 13

  7. Slide 7: Infrastructure End Market

    Infrastructure End Market Data Center, PON/FTTH, Wireless, Infrastructure Circuit Protection • Strong market interest for FiberEdge 400G and 800G Q4’24 NET SALES optical module and supporting 1.6T module designs • Design-in activity for DirectEdge platform enabling 800G Linear Pluggable Optics modul

  8. Slide 8: High-End Consumer End Market

    High-End Consumer End Market PerSe® Smart Sensing, Consumer Circuit Protection Q4’24 NET SALES • POS for Q4’24 increased Q/Q and Y/Y • We believe our market share for consumer circuit protection, particularly in USB Type-C, has increased • PerSe® Smart Sensing products benefitted from specific absor

  9. Slide 9: Industrial End Market

    Industrial End Market Modules, Routers, Smart Connectivity, LoRa®, Industrial Circuit Protection, Professional AV • Q4’24 net sales for modules benefits from end-of- Q4’24 NET SALES life products and LPWA sales into smart metering and asset-tracking applications • Router sales were down 13% Q/Q as w

  10. Slide 10: Summary Financial Results

    Summary Financial Results GAAP Financial Results Quarter Ended Fiscal Year Ended (in millions, except per share data) Q424 Q324 Q423 Q424 Q423 Net sales $ 192.9 $ 200.9 $ 167.5 $ 868.8 $ 756.5 Gross margin (0.2)% 46.3% 59.7% 34.1% 63.3% Operating costs and expenses, net $ 619.6 $ 105.3 $ 155.7 $ 1,2

  11. Slide 11: Q1'25 Outlook

    4 ) . mre " Saeed eee Q1'25 .. OUTLOOK SEMTECH

  12. Slide 12: Q1'25 Outlook

    Q1’25 Outlook* (in millions, except per share data) Net sales $ 200.0 +/- $ 5.0 Net Sales Outlook • Infrastructure market is expected Non-GAAP Financial Measures to be up sequentially, reflecting Gross margin 49.5 % +/- 100 bps PON and data center gains Operating costs and expenses, net $ 78.5 +/- $

  13. Slide 13: Net Sales Schedules

    mre . Saeed eee NET SALES ., SCHEDULES Ag SEMTECH

  14. Slide 14: Net Sales Schedules

    Net Sales Schedules END MARKET Q4 FY24 Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Infrastructure $39.4 $43.1 $42.4 $39.0 $56.1 High-End Consumer 32.1 37.6 34.0 21.6 34.9 Industrial 121.5 120.2 162.0 175.9 76.5 Total $192.9 $200.9 $238.4 $236.5 $167.5 REPORTABLE SEGMENT Q4 FY24 Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 S

  15. Slide 15: Convertible Senior Notes Dilution Table

    CONVERTIBLE SENIOR NOTES DILUTION TABLE 15 |

  16. Slide 16: Convertible Senior Notes Dilution Table

    Convertible Senior Notes Dilution Table ESTIMATED INCREMENTAL DILUTIVE SHARES AS OF JANUARY 28, 2024 2027 1.625% Notes 2028 4.000% Notes Total GAAP Non-GAAP GAAP GAAP Non-GAAP Average # of Conversion Dilutive Dilutive # of Conversion Dilutive # of Dilutive Dilutive Stock Price Shares Price Warrants

  17. Slide 17: Convertible Senior Notes Dilution Table

    Convertible Senior Notes Dilution Table The incremental dilutive shares from the 1.625% Convertible Senior Notes due 2027 (the "2027 1.625% Notes") and the 4.00% Convertible Senior Notes due 2028 (the "2028 4.00% Notes") collectively (the "Notes") is calculated using the prices in the Average Stock

  18. Slide 18: Appendix Supplemental Information

    APPENDIX SUPPLEMENTAL INFORMATION 18 |

  19. Slide 19: Reconciliation of GAAP to Non-GAAP Results

    Supplemental Information: Reconciliation of GAAP to Non-GAAP Results Quarter Ended Fiscal Year Ended January 28, October 29, January 29, January 28, January 29, 2024 2023 2023 2024 2023 Q424 Q324 Q423 Q424 Q423 Gross margin (GAAP) (0.2) % 46.3 % 59.7 % 34.1 % 63.3 % Share-based compensation 0.3 % 0.

  20. Slide 20: Reconciliation of GAAP to Non-GAAP Results

    Supplemental Information: Reconciliation of GAAP to Non-GAAP Results Quarter Ended Fiscal Year Ended January 28, October 29, January 29, January 28, January 29, 2024 2023 2023 2024 2023 Q424 Q324 Q423 Q424 Q423 Operating cost and expense, net (GAAP) $ 619,570 $ 105,339 $ 155,672 $ 1,240,572 $ 385,75

  21. Slide 21: Reconciliation of GAAP to Non-GAAP Results

    Supplemental Information: Reconciliation of GAAP to Non-GAAP Results Quarter Ended Fiscal Year Ended January 28, October 29, January 29, January 28, January 29, 2024 2023 2023 2024 2023 Q424 Q324 Q423 Q424 Q423 Operating (loss) income (GAAP) $ (619,960) $ (12,373) $ (55,659) $ (944,322) $ 92,799 Sha

  22. Slide 22: Reconciliation of GAAP to Non-GAAP Results

    Supplemental Information: Reconciliation of GAAP to Non-GAAP Results Quarter Ended Fiscal Year Ended January 28, October 29, January 29, January 28, January 29, 2024 2023 2023 2024 2023 Q424 Q324 Q423 Q424 Q423 Operating margin (GAAP) (321.3) % (6.2) % (33.2) % (108.7) % 12.3 % Share-based compensat

  23. Slide 23: Reconciliation of GAAP to Non-GAAP Results

    Supplemental Information: Reconciliation of GAAP to Non-GAAP Results Quarter Ended Fiscal Year Ended January 28, October 29, January 29, January 28, January 29, 2024 2023 2023 2024 2023 Q424 Q324 Q423 Q424 Q423 Interest expense, net (GAAP) $ 22,093 $ 27,731 $ 2,138 $ 92,762 $ 11,845 Amortization of

  24. Slide 24: Reconciliation of GAAP to Non-GAAP Results

    Supplemental Information: Reconciliation of GAAP to Non-GAAP Results Quarter Ended Fiscal Year Ended January 28, October 29, January 29, January 28, January 29, 2024 2023 2023 2024 2023 Q424 Q324 Q423 Q424 Q423 GAAP net (loss) income attributable to common stockholders $ (642,363) $ (38,250) $ (51,0

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