Semtech Corporation (NASDAQ: SMTC) stock rose over 3.1% in the pre-market session of June 3rd, 2021 (Source: Google finance) as the company posted better than expected result for the first quarter of FY 22.
During the first quarter, Wireless and Sensing products group net sales increased 7% sequentially and 78% year-over-year for a new record that included record net sales for the LoRa platforms and proximity sensing products. The company posted record quarterly bookings including records for our LoRa platforms, Tri-Edge and broad-based Industrial Protection devices. The company has repurchased 360,942 shares for $25.0 million during Q1 FY2022. Further, the company delivered Non-GAAP Gross margin was 62%, Non-GAAP SG&A expense was $31.1 million, Non-GAAP R&D expense was $33.0 million, Non-GAAP Operating margin was 24.3% and Non-GAAP Net income attributable to common stockholders was $34.8 million for the first quarter of FY 22. The non-GAAP gross margin grew sequentially 50bps and non-GAAP Operating income increased 2x sequential net sales growth. There has been strong start to FY22 led by the strength from the IoT, Optical Infrastructure and Mobile segments. The company expects fiscal Q2 to have record demand, record bookings and record starting backlog highlight the underlying strength of the core growth engines and should enable the Company to deliver a record financial performance in FY22
SMTC in the first quarter of FY 22 has reported the adjusted earnings per share of 53 cents, beating the analysts’ estimates for the adjusted earnings per share of 52 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 28 percent to $170.4 million in the first quarter of FY 22, beating the analysts’ estimates for revenue of $167.9 million.
For the second quarter ending in August, Semtech expects its per-share earnings to range from 57 cents to 65 cents. The company expects revenue to be in the range of $177 million to $187 million for the fiscal second quarter. For the second quarter, the company expects Non-GAAP Gross margin to be in the range of 61.7% to 62.7%, Non-GAAP SG&A expense is expected to be in the range of $33.0 million to $34.0 million, Non-GAAP R&D expense is expected to be in the range of $31.0 million to $32.0 million and Non-GAAP normalized tax rate for FY2022 is expected to be approximately 13%. For the second quarter, the company expects Capital expenditures to be approximately $10.0 million and Depreciation expense is expected to be approximately $6.5 million