Wed, Jun 5, 9:00 PM (138 days ago)
Semtech Corporation's Form 10-Q for the quarter ended April 28, 2024, reveals a 12.9% decline in net sales to $206.1 million compared to $236.5 million in the same quarter of the previous year, primarily due to reduced sales in the IoT Systems and Connectivity segment. Gross profit decreased slightly to $99.6 million, with a gross margin improvement to 48.3% from 43.5%, driven by reduced amortization of acquired technology. Operating expenses dropped by 16% to $96.4 million, attributed to lower transaction and integration costs and reduced headcount. Interest expenses rose to $23.2 million due to higher floating-rate debt costs. The company reported a net loss of $23.2 million, an improvement from the $29.4 million loss in the prior year, and recorded a $3.0 million income tax expense. Cash flow from operations was breakeven, with significant reductions in capital expenditures. The company maintains compliance with financial covenants under its Credit Agreement, with $126.8 million in cash and $282.2 million available under its revolving credit facility.