CAMARILLO, Calif. - Semtech (NASDAQ:SMTC) Corporation (NASDAQ:SMTC (NASDAQ:SMTX)), a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms, has reported its first-quarter financial results for fiscal year 2025, surpassing analyst expectations for both earnings per share (EPS) and revenue.
The company's shares rose by 2.7% following the announcement, indicating a positive market response to the earnings beat.
For the first quarter, Semtech reported adjusted EPS of $0.06, exceeding the analyst estimate of $0.02. Revenue for the quarter was $206.1 million, also beating the consensus estimate of $195.28 million. This performance represents a notable achievement for the company, with net sales surpassing the high-end of their guidance range.
President and CEO Paul H. Pickle expressed satisfaction with the company's financial performance, highlighting the sales exceeding guidance and the significant year-over-year reductions in channel inventories across all end markets. Semtech's focus on cost management was evident, with non-GAAP operating expenses decreasing by 17% compared to the same period last year, and falling below the midpoint of guidance.
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. This guidance suggests that Semtech is maintaining a positive outlook for the upcoming quarter.
Semtech's CFO Mark Lin emphasized the company's effective cost monitoring and improved allocation of spending, which has contributed to the sequential and year-over-year improvement in adjusted EBITDA and adjusted EBITDA margin.
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