Semtech Corp (NASDAQ:SMTC), a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms, stock rose 4.61% (As on June 6, 11:21:48 AM UTC-4, Source: Google Finance) after the company beat Wall Street estimates for the first quarter of FY 25. In hyperscale data center applications, net sales has more than doubled Y/Y, with powerful secular trends in AI continuing to support our copper and optical portfolios. Timing and market opportunity for 1.6T active copper cables remain largely consistent with last quarter; cable suppliers have received purchase orders for designs specifying the chips.
Moreover, net sales in consumer TVS grew 20% Q/Q and 108% Y/Y; the company believes the market share at several leading consumer products companies continued to grow. Consumption for PerSe Smart Sensing products up 19% Q/Q and 62% Y/Y, and benefitted from specific absorption rate standards supplemented by design wins in several markets, covering tablets, ear buds, notebook computers and smartphones. IoT Systems net sales down 26% Q/Q and down 57% Y/Y, with shipment volume reflecting desire for healthier channel and end customer inventories. IoT Systems showing signs of recovery with booking up 47% Q/Q; router bookings more than doubled Q/Q and Y/Y, and were skewed towards our higher gross margin products. Module bookings up 22% Q/Q, with growth driven by 5G offerings. Net sales of RF industrial products, including LoRa®- enabled solutions increased 76% Q/Q and 19% Y/Y.Booking for industrial TVS increased 61% Q/Q.
SMTC in the first quarter of FY 25 has reported the adjusted earnings per share of 6 cents, beating the analysts’ estimates for the adjusted earnings per share of 2 cents. The company had reported the adjusted revenue of $206.1 million in the first quarter of FY 25, beating the analysts’ estimates for revenue of $195.28 million.
Looking ahead, Semtech provided guidance for the second quarter of fiscal year 2025, projecting an EPS of $0.09, which is slightly below the analyst consensus of $0.11. However, the company’s revenue forecast of $212 million is above the consensus estimate of $210.2 million. Infrastructure market is expected to be up with data center gains offset by PON. High-end consumer is expected to be slightly up. The industrial end market is expected to be flat to slightly up.
On the other hand, SMTC and Console Connect, a leading Network-as-a-Service (NaaS) platform, have jointly announced their collaboration which will expand Semtech’s connectivity coverage across the Asia-Pacific (APAC) region for its AirVantage Smart Connectivity service.