The earnings call highlighted strong growth in data center and infrastructure markets, with record revenue figures and improved financial metrics. The company demonstrated effective execution of strategic priorities and provided a positive outlook for Q4. However, challenges in the PON business and debt levels were noted as areas of concern.

Company Guidance

In the third quarter of fiscal year 2025, Semtech Corporation reported exceptional performance, with net sales reaching $236.8 million, reflecting a 10% sequential increase. The company's gross margin improved by 200 basis points sequentially and 110 basis points year over year, reaching 52.4%. Operating income soared to $43.4 million, resulting in an operating margin of 18.3%, a significant increase of 410 basis points sequentially and 810 basis points year over year. This robust financial performance also included an adjusted EBITDA of $51.1 million and an EBITDA margin of 21.6%, marking a sequential increase of 280 basis points and a year-over-year increase of 760 basis points. The upbeat results were driven largely by strong performance in the data center segment, with net sales for the data center hitting a record $43.1 million, up 58% sequentially and 78% year over year. These achievements aligned with Semtech's strategic focus on portfolio rationalization and margin expansion. Looking ahead to Q4, the company projected net sales growth to $250 million and further improvements in gross, operating, and adjusted EBITDA margins, with EPS expected to be $0.32. This guidance underscored the company's confidence in sustaining its growth trajectory across key metrics.

Record Data Center Revenue Growth

Net sales for the data center reached a record $43.1 million, up 58% sequentially and up 78% year-over-year, driven by the CopperEdge 200-gig linear redrivers used in 1.6T active copper cable applications.

Strong Infrastructure and Consumer Market Performance

Infrastructure net sales were $65.8 million, up 24% sequentially and up 52% year-over-year. High-end consumer market net sales were $40 million, a sequential increase of 8%.

LoRa and IoT Systems Growth

LoRa-enabled solutions recorded net sales of $29 million, up 1% sequentially and up 104% year-over-year. IoT systems business net sales were $57.9 million, up 11% sequentially.

Improved Financial Metrics

Gross margin improved to 52.4%, up 200 basis points sequentially. Operating income was $43.4 million, with an operating margin of 18.3%, up 410 basis points sequentially.

Positive Q4 Outlook

Q4 net sales are expected to be $250 million, a 6% sequential increase, with continued growth in the infrastructure and industrial markets.

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Semtech (SMTC) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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SMTC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 29, 2018	2019 (Q2)	- / 0.55	0.48	14.58% (+0.07)	―	―
Nov 28, 2018	2019 (Q3)	- / 0.63	0.54	16.67% (+0.09)	―	―
Mar 13, 2019	2019 (Q4)	- / 0.55	0.42	30.95% (+0.13)	―	―
May 29, 2019	2020 (Q1)	- / 0.34	0.47	-27.66% (-0.13)	―	―
Aug 28, 2019	2020 (Q2)	- / 0.38	0.55	-30.91% (-0.17)	―	―
Dec 04, 2019	2020 (Q3)	- / 0.41	0.63	-34.92% (-0.22)	―	―
Mar 11, 2020	2020 (Q4)	- / 0.40	0.55	-27.27% (-0.15)	―	―
May 27, 2020	2021 (Q1)	- / 0.35	0.34	2.94% (<+0.01)	―	―
Aug 26, 2020	2021 (Q2)	- / 0.43	0.38	13.16% (+0.05)	―	―
Dec 02, 2020	2021 (Q3)	- / 0.47	0.41	14.63% (+0.06)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SMTC Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 25, 2024	$53.44	$63.11	+18.10%
Aug 27, 2024	$38.16	$42.43	+11.19%
Jun 05, 2024	$38.68	$37.98	-1.81%
Mar 28, 2024	$27.49	$29.37	+6.84%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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