Highlights for the Second Fiscal Quarter 2020
-
Q2 FY2020 net sales increased 4% sequentially to
$137.1 million -
Q2 FY2020 GAAP EPS of
$0.08 and non-GAAP EPS of$0.38 - The Internet of Things (IoT) and hyper scale data center markets experienced strong sequential growth
-
Distributor Point of Sale (POS) increased 12% sequentially -
Cash flow from operations was
$33.4 million or 24% of net sales
Results on a GAAP basis for the Second Fiscal Quarter 2020
-
GAAP Net sales were
$137.1 million - GAAP Gross margin was 61.9%
-
GAAP SG&A expense was
$39.9 million -
GAAP R&D expense was
$25.6 million - GAAP Operating margin was 11.3%
-
GAAP Net income was
$5.4 million or$0.08 per diluted share
To facilitate a complete understanding of comparable financial performance between periods, the Company also presents performance results that exclude certain non-cash items and items that are not considered reflective of the Company’s core results over time. These non-GAAP financial measures exclude certain items and are described below under “Non-GAAP Financial Measures.”
Results on a Non-GAAP basis for the Second Fiscal Quarter 2020 (see the list of non-GAAP items and the reconciliation of these to the most relevant GAAP items set forth in the tables below):
- Non-GAAP Gross margin was 62.2%
-
Non-GAAP SG&A expense was
$30.4 million -
Non-GAAP R&D expense was
$23.3 million - Non-GAAP Operating margin was 22.9%
-
Non-GAAP Net income was
$25.5 million or$0.38 per diluted share
Third Fiscal Quarter 2020 Outlook
Both the GAAP and non-GAAP third fiscal quarter 2020 outlook below take into account the anticipated impact to the Company, based on its current estimates, of the recently announced export restrictions pertaining to
GAAP Third Fiscal Quarter 2020 Outlook
-
Net sales are expected to be in the range of
$135.0 million to$145.0 million - GAAP Gross margin is expected to be in the range of 61.0% to 61.6%
-
GAAP SG&A expense is expected to be in the range of
$33.5 million to$34.5 million -
GAAP R&D expense is expected to be in the range of
$26.9 million to$27.9 million -
GAAP Intangible amortization expense is expected to be approximately
$3.9 million -
GAAP Interest and other expense, net is expected to be approximately
$1.5 million - GAAP Effective tax rate is expected to be in the range of 13% to 17%
-
GAAP Earnings per diluted share are expected to be in the range of
$0.21 to$0.27 - Fully-diluted share count is expected to be approximately 67.3 million shares
-
Share-based compensation is expected to be approximately
$8.0 million , categorized as follows:$0.6 million cost of sales,$4.5 million SG&A, and$2.9 million R&D -
Capital expenditures are expected to be approximately
$7.0 million -
Depreciation expense is expected to be approximately
$6.1 million
Non-GAAP Third Fiscal Quarter 2020 Outlook (see the list of non-GAAP items and the reconciliation of these to the most comparable GAAP items set forth in the tables below)
- Non-GAAP Gross margin is expected to be in the range of 61.4% to 62.0%
-
Non-GAAP SG&A expense is expected to be in the range of
$28.0 million to$29.0 million -
Non-GAAP R&D expense is expected to be in the range of
$24.0 million to$25.0 million -
Non-GAAP Interest and other expense, net is expected to be approximately
$1.5 million - Non-GAAP Effective tax rate is expected to be in the range of 14% to 18%
-
Non-GAAP Earnings per diluted share are expected to be in the range of
$0.38 to$0.42
Webcast and Conference Call
Semtech will be hosting a conference call today to discuss its second fiscal quarter 2020 results at
Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements prepared in accordance with GAAP, this release includes a presentation of select non-GAAP metrics. The Company's measure of free cash flow is calculated as cash flow from operations less net capital expenditures. The Company’s non-GAAP measures of gross margin, SG&A expenses, R&D expenses, operating margin, effective tax rate, net income and earnings per diluted share exclude the following items, if any:
- Share-based compensation
- Amortization of purchased intangibles and impairments
- Restructuring, transaction and other acquisition or disposition-related expenses and gains on dispositions
- Litigation expenses or dispute settlement charges or gains
- Environmental reserves
- Equity in net gains or losses of equity method investments
To provide additional insight into the Company's third quarter outlook, this release also includes a presentation of forward-looking non-GAAP measures. Management believes that the presentation of these non-GAAP financial measures provide useful information to investors regarding the Company’s financial condition and results of operations because these non-GAAP financial measures are adjusted to exclude the items identified above because such items are either operating expenses which would not otherwise have been incurred by the Company in the normal course of the Company’s business operations or are not reflective of the Company’s core results over time. These excluded items may include recurring as well as non-recurring items, and no inference should be made that all of these adjustments, charges, costs or expenses are unusual, infrequent or non-recurring. For example: certain restructuring and integration-related expenses (which consist of employee termination costs, facility closure or lease termination costs, and contract termination costs) may be considered recurring given the Company’s ongoing efforts to be more cost effective and efficient; certain acquisition and disposition-related adjustments or expenses may be deemed recurring given the Company's regular evaluation of potential transactions and investments; and certain litigation expenses or dispute settlement charges or gains (which may include estimated losses for which we may have established a reserve, as well as any actual settlements, judgments, or other resolutions against, or in favor of, the Company related to litigation, arbitration, disputes or similar matters, and insurance recoveries received by the Company related to such matters) may be viewed as recurring given that the Company may from time to time be involved in, and may resolve, litigation, arbitration, disputes, and similar matters.
Notwithstanding that certain adjustments, charges, costs or expenses may be considered recurring, in order to provide meaningful comparisons, the Company believes that it is appropriate to exclude such items because they are not reflective of the Company's core results and tend to vary based on timing, frequency and magnitude.
As noted in its first quarter fiscal year 2019 earnings release, the Company is no longer adjusting prior-period non-GAAP performance metrics of net sales and gross margin to exclude the cost of the Comcast Warrant as the Comcast Warrant was fully vested in the first quarter of fiscal year 2019. The Company in previous periods had excluded the recognized cost of the Comcast Warrant from non-GAAP net sales and non-GAAP gross margin because the cost related to a non-routine, non-cash equity award that was provided to Comcast as an incentive to deploy a network based on technology developed by the Company and because the Comcast Warrant would not have had an ongoing impact on revenues in future periods.
These non-GAAP financial measures are provided to enhance the user's overall understanding of the Company's comparable financial performance between periods. In addition, the Company’s management generally excludes the items noted above when managing and evaluating the performance of the business. The financial statements provided with this release include reconciliations of these non-GAAP measures to their most comparable GAAP measures for the second quarter of fiscal year 2019 and the first and second quarters of fiscal year 2020, along with a reconciliation of forward-looking non-GAAP measures (other than the non-GAAP effective tax rate) to their most comparable GAAP measures for the third quarter of fiscal year 2020. The Company is unable to include a reconciliation of the forward-looking non-GAAP measure of the non-GAAP effective tax rate to the corresponding GAAP measure as this is not available without unreasonable efforts due to the high variability and low visibility with respect to the charges that are excluded from this non-GAAP measure. We expect the variability of the above charges to have a potentially significant impact on our GAAP financial results. These additional non-GAAP financial measures should not be considered substitutes for any measures derived in accordance with GAAP and may be inconsistent with similar measures presented by other companies.
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on the Company’s current expectations, estimates and projections about its operations, industry, financial condition, performance, results of operations, and liquidity. Forward-looking statements are statements other than historical information or statements of current condition and relate to matters such as future financial performance including the third quarter of fiscal year 2020 outlook, the Company’s expectations concerning the negative impact on the Company’s results of operations from its inability to ship certain products and provide certain support services due to the export restrictions related to
Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and events to differ materially from those projected. Potential factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the Company's ability to manage expenses to achieve anticipated shifts in demand among target customers, and other comparable changes or protracted weakness in projected or anticipated markets; competitive changes in the marketplace including, but not limited to, the pace of growth or adoption rates of applicable products or technologies; export restrictions and laws affecting the Company's trade and investments including the adoption and expansion of trade restrictions including with respect to
About Semtech
Semtech, the Semtech logo and LoRa are registered trademarks or service marks of
SMTC-F
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited) |
||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Q220 |
|
Q120 |
|
Q219 |
|
Q220 |
|
Q219 |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net sales |
$ |
137,146 |
|
|
$ |
131,354 |
|
|
$ |
163,211 |
|
|
$ |
268,500 |
|
|
$ |
293,640 |
|
|
Cost of sales |
52,262 |
|
|
50,079 |
|
|
63,087 |
|
|
102,341 |
|
|
122,047 |
|
||||||
Gross profit |
84,884 |
|
|
81,275 |
|
|
100,124 |
|
|
166,159 |
|
|
171,593 |
|
||||||
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|||||||||||
Selling, general and administrative |
39,875 |
|
|
38,377 |
|
|
33,529 |
|
|
78,252 |
|
|
74,935 |
|
||||||
Product development and engineering |
25,553 |
|
|
27,099 |
|
|
28,079 |
|
|
52,652 |
|
|
54,278 |
|
||||||
Intangible amortization |
3,908 |
|
|
5,143 |
|
|
6,480 |
|
|
9,051 |
|
|
13,441 |
|
||||||
Changes in the fair value of contingent earn-out obligations |
— |
|
|
(2,161 |
) |
|
(900 |
) |
|
(2,161 |
) |
|
(900 |
) |
||||||
Total operating costs and expenses |
69,336 |
|
|
68,458 |
|
|
67,188 |
|
|
137,794 |
|
|
141,754 |
|
||||||
Operating income |
15,548 |
|
|
12,817 |
|
|
32,936 |
|
|
28,365 |
|
|
29,839 |
|
||||||
Interest expense |
(2,597 |
) |
|
(2,467 |
) |
|
(2,200 |
) |
|
(5,064 |
) |
|
(4,390 |
) |
||||||
Non-operating income, net |
1,213 |
|
|
1,043 |
|
|
542 |
|
|
2,256 |
|
|
732 |
|
||||||
Income before taxes and equity in net gains (losses) of equity method investments |
14,164 |
|
|
11,393 |
|
|
31,278 |
|
|
25,557 |
|
|
26,181 |
|
||||||
Provision (benefit) for taxes |
8,966 |
|
|
(2,312 |
) |
|
6,082 |
|
|
6,654 |
|
|
(11,428 |
) |
||||||
Net income before equity in net gains (losses) of equity method investments |
5,198 |
|
|
13,705 |
|
|
25,196 |
|
|
18,903 |
|
|
37,609 |
|
||||||
Equity in net gains (losses) of equity method investments |
168 |
|
|
(411 |
) |
|
(27 |
) |
|
(243 |
) |
|
(58 |
) |
||||||
Net income |
$ |
5,366 |
|
|
$ |
13,294 |
|
|
$ |
25,169 |
|
|
$ |
18,660 |
|
|
$ |
37,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
$ |
0.08 |
|
|
$ |
0.20 |
|
|
$ |
0.38 |
|
|
$ |
0.28 |
|
|
$ |
0.57 |
|
|
Diluted |
$ |
0.08 |
|
|
$ |
0.20 |
|
|
$ |
0.37 |
|
|
$ |
0.28 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average number of shares used in computing earnings per share: |
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
66,519 |
|
|
66,105 |
|
|
66,063 |
|
|
66,312 |
|
|
66,194 |
|
||||||
Diluted |
67,746 |
|
|
67,976 |
|
|
68,880 |
|
|
67,814 |
|
|
68,428 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
||||||||
|
|
|
|
|||||
ASSETS |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
287,839 |
|
|
$ |
312,120 |
|
|
Accounts receivable, net |
58,643 |
|
|
79,223 |
|
|||
Inventories |
75,060 |
|
|
63,679 |
|
|||
Prepaid taxes |
15,540 |
|
|
8,406 |
|
|||
Other current assets |
16,175 |
|
|
21,876 |
|
|||
Total current assets |
453,257 |
|
|
485,304 |
|
|||
Non-current assets: |
|
|
|
|||||
Property, plant and equipment, net |
125,764 |
|
|
118,488 |
|
|||
Deferred tax assets |
17,896 |
|
|
14,362 |
|
|||
|
351,141 |
|
|
351,141 |
|
|||
Other intangible assets, net |
27,506 |
|
|
36,558 |
|
|||
Other assets |
80,750 |
|
|
57,028 |
|
|||
Total assets |
$ |
1,056,314 |
|
|
$ |
1,062,881 |
|
|
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
38,903 |
|
|
$ |
43,183 |
|
|
Accrued liabilities |
49,925 |
|
|
65,023 |
|
|||
Deferred revenue |
3,455 |
|
|
3,439 |
|
|||
Current portion, long term debt |
18,294 |
|
|
18,269 |
|
|||
Total current liabilities |
110,577 |
|
|
129,914 |
|
|||
Non-current liabilities: |
|
|
|
|||||
Deferred tax liabilities |
3,620 |
|
|
3,363 |
|
|||
Long term debt, less current portion |
183,692 |
|
|
192,845 |
|
|||
Other long-term liabilities |
68,885 |
|
|
54,078 |
|
|||
Stockholders’ equity |
689,540 |
|
|
682,681 |
|
|||
Total liabilities & stockholders' equity |
$ |
1,056,314 |
|
|
$ |
1,062,881 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND SUPPLEMENTAL INFORMATION (in thousands) (unaudited) |
|||||||||||
|
Six Months Ended |
|
|
||||||||
|
|
|
|
|
|
||||||
Net income |
$ |
18,660 |
|
|
$ |
37,551 |
|
|
|
||
|
|
|
|
|
|
||||||
Net cash provided by operations |
40,093 |
|
|
84,367 |
|
|
|
||||
Net cash used in investing activities |
(24,442 |
) |
|
(21,126 |
) |
|
|
||||
Net cash used in financing activities |
(39,932 |
) |
|
(59,830 |
) |
|
|
||||
Net (decrease) increase in cash and cash equivalents |
(24,281 |
) |
|
3,411 |
|
|
|
||||
Cash and cash equivalents at beginning of period |
312,120 |
|
|
307,923 |
|
|
|
||||
Cash and cash equivalents at end of period |
$ |
287,839 |
|
|
$ |
311,334 |
|
|
|
||
|
|
|
|
|
|
||||||
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
||||||
|
Q220 |
|
Q120 |
|
Q219 |
||||||
Free Cash Flow: |
|
|
|
|
|
||||||
Cash Flow from Operations |
$ |
33,352 |
|
|
$ |
6,741 |
|
|
$ |
49,338 |
|
Net Capital Expenditures |
(1,635 |
) |
|
(15,258 |
) |
|
(4,886 |
) |
|||
Free Cash Flow: |
$ |
31,717 |
|
|
$ |
(8,517 |
) |
|
$ |
44,452 |
|
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (in thousands, except per share data) (unaudited) |
||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Q220 |
|
Q120 |
|
Q219 |
|
Q220 |
|
Q219 |
|||||||||||
Gross Margin- GAAP |
61.9 |
% |
|
61.9 |
% |
|
61.3 |
% |
|
61.9 |
% |
|
58.4 |
% |
||||||
Share-based compensation |
0.3 |
% |
|
0.3 |
% |
|
0.2 |
% |
|
0.3 |
% |
|
0.2 |
% |
||||||
Adjusted Gross Margin (Non-GAAP) |
62.2 |
% |
|
62.2 |
% |
|
61.5 |
% |
|
62.2 |
% |
|
58.6 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Q220 |
|
Q120 |
|
Q219 |
|
Q220 |
|
Q219 |
|||||||||||
Selling, general and administrative- GAAP |
$ |
39,875 |
|
|
$ |
38,377 |
|
|
$ |
33,529 |
|
|
$ |
78,252 |
|
|
$ |
74,935 |
|
|
Share-based compensation |
(6,082 |
) |
|
(8,344 |
) |
|
(11,378 |
) |
|
(14,426 |
) |
|
(22,840 |
) |
||||||
Transaction and integration related |
14 |
|
|
(1,249 |
) |
|
(264 |
) |
|
(1,235 |
) |
|
(498 |
) |
||||||
Restructuring and other reserves |
(2,571 |
) |
|
(140 |
) |
|
(337 |
) |
|
(2,711 |
) |
|
(684 |
) |
||||||
Litigation cost, net of recoveries |
(799 |
) |
|
74 |
|
|
6,641 |
|
|
(725 |
) |
|
6,082 |
|
||||||
Adjusted selling, general and administrative (Non-GAAP) |
$ |
30,437 |
|
|
$ |
28,718 |
|
|
$ |
28,191 |
|
|
$ |
59,155 |
|
|
$ |
56,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Q220 |
|
Q120 |
|
Q219 |
|
Q220 |
|
Q219 |
|||||||||||
Product development and engineering- GAAP |
$ |
25,553 |
|
|
$ |
27,099 |
|
|
$ |
28,079 |
|
|
$ |
52,652 |
|
|
$ |
54,278 |
|
|
Share-based compensation |
(2,162 |
) |
|
(2,557 |
) |
|
(2,282 |
) |
|
(4,719 |
) |
|
(4,506 |
) |
||||||
Transaction and integration related |
(47 |
) |
|
(186 |
) |
|
(135 |
) |
|
(233 |
) |
|
(429 |
) |
||||||
Restructuring and other reserves |
— |
|
|
— |
|
|
252 |
|
|
— |
|
|
252 |
|
||||||
Litigation cost, net of recoveries |
— |
|
|
— |
|
|
(784 |
) |
|
— |
|
|
(784 |
) |
||||||
Adjusted product development and engineering (Non-GAAP) |
$ |
23,344 |
|
|
$ |
24,356 |
|
|
$ |
25,130 |
|
|
$ |
47,700 |
|
|
$ |
48,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Q220 |
|
Q120 |
|
Q219 |
|
Q220 |
|
Q219 |
|||||||||||
Operating Margin- GAAP |
11.3 |
% |
|
9.8 |
% |
|
20.2 |
% |
|
10.6 |
% |
|
10.2 |
% |
||||||
Share-based compensation |
6.3 |
% |
|
8.6 |
% |
|
8.6 |
% |
|
7.4 |
% |
|
9.5 |
% |
||||||
Intangible amortization |
2.8 |
% |
|
3.9 |
% |
|
4.0 |
% |
|
3.4 |
% |
|
4.6 |
% |
||||||
Transaction and integration related |
— |
% |
|
1.1 |
% |
|
0.2 |
% |
|
0.5 |
% |
|
0.3 |
% |
||||||
Restructuring and other reserves |
1.9 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
1.0 |
% |
|
0.1 |
% |
||||||
Litigation cost, net of recoveries |
0.6 |
% |
|
(0.1 |
)% |
|
(3.6 |
)% |
|
0.3 |
% |
|
(1.8 |
)% |
||||||
Changes in the fair value of contingent earn-out obligations |
— |
% |
|
(1.6 |
)% |
|
(0.6 |
)% |
|
(0.8 |
)% |
|
(0.3 |
)% |
||||||
Adjusted Operating Margin (Non-GAAP) |
22.9 |
% |
|
21.8 |
% |
|
28.9 |
% |
|
22.4 |
% |
|
22.6 |
% |
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Continued) (in thousands, except per share data) (unaudited) |
||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Q220 |
|
Q120 |
|
Q219 |
|
Q220 |
|
Q219 |
|||||||||||
GAAP net income |
$ |
5,366 |
|
|
$ |
13,294 |
|
|
$ |
25,169 |
|
|
$ |
18,660 |
|
|
$ |
37,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjustments to GAAP net income: |
|
|
|
|
|
|
|
|
|
|||||||||||
Share-based compensation |
8,646 |
|
|
11,328 |
|
|
13,966 |
|
|
19,974 |
|
|
27,980 |
|
||||||
Intangible amortization |
3,908 |
|
|
5,143 |
|
|
6,480 |
|
|
9,051 |
|
|
13,441 |
|
||||||
Transaction and integration related |
33 |
|
|
1,435 |
|
|
399 |
|
|
1,468 |
|
|
927 |
|
||||||
Restructuring and other reserves |
2,571 |
|
|
140 |
|
|
85 |
|
|
2,711 |
|
|
431 |
|
||||||
Litigation cost, net of recoveries |
799 |
|
|
(74 |
) |
|
(5,857 |
) |
|
725 |
|
|
(5,297 |
) |
||||||
Changes in the fair value of contingent earn-out obligations |
— |
|
|
(2,161 |
) |
|
(900 |
) |
|
(2,161 |
) |
|
(900 |
) |
||||||
Total Non-GAAP adjustments before taxes |
15,957 |
|
|
15,811 |
|
|
14,173 |
|
|
31,768 |
|
|
36,582 |
|
||||||
Associated tax effect |
4,314 |
|
|
(6,504 |
) |
|
(1,741 |
) |
|
(2,190 |
) |
|
(22,395 |
) |
||||||
Equity in net (gains) losses of equity method investments |
(168 |
) |
|
411 |
|
|
27 |
|
|
243 |
|
|
58 |
|
||||||
Total of supplemental information, net of taxes |
20,103 |
|
|
9,718 |
|
|
12,459 |
|
|
29,821 |
|
|
14,245 |
|
||||||
Non-GAAP net income |
$ |
25,469 |
|
|
$ |
23,012 |
|
|
$ |
37,628 |
|
|
$ |
48,481 |
|
|
$ |
51,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted GAAP earnings per share |
$ |
0.08 |
|
|
$ |
0.20 |
|
|
$ |
0.37 |
|
|
$ |
0.28 |
|
|
$ |
0.55 |
|
|
Adjustments per above |
0.30 |
|
|
0.14 |
|
|
0.18 |
|
|
0.43 |
|
|
0.21 |
|
||||||
Diluted non-GAAP earnings per share |
$ |
0.38 |
|
|
$ |
0.34 |
|
|
$ |
0.55 |
|
|
$ |
0.71 |
|
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Q220 |
|
Q120 |
|
Q219 |
|
Q220 |
|
Q219 |
|||||||||||
Comcast Warrant* |
|
|
|
|
|
|
|
|
|
|||||||||||
Impact on |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(21,501 |
) |
|
Associated tax effect |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,678 |
|
||||||
Impact on EPS |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(0.26 |
) |
*In consideration of discussions held with the
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK Third Quarter of Fiscal Year 2020 Outlook (in millions, except per share data) |
||||||||
|
|
Q3 FY20 Outlook |
||||||
|
|
|
||||||
|
|
Low |
|
High |
||||
Gross Margin–GAAP |
|
61.0 |
% |
|
61.6 |
% |
||
Share-based compensation |
|
0.4 |
% |
|
0.4 |
% |
||
Adjusted Gross Margin (Non-GAAP) |
|
61.4 |
% |
|
62.0 |
% |
||
|
|
|
|
|
||||
|
|
Low |
|
High |
||||
Selling, general and administrative–GAAP |
|
$ |
33.5 |
|
|
$ |
34.5 |
|
Share-based compensation |
|
(4.5 |
) |
|
(4.5 |
) |
||
Transaction and integration related |
|
(1.0 |
) |
|
(1.0 |
) |
||
Adjusted selling, general and administrative (Non-GAAP) |
|
$ |
28.0 |
|
|
$ |
29.0 |
|
|
|
|
|
|
||||
|
|
Low |
|
High |
||||
Product development and engineering–GAAP |
|
$ |
26.9 |
|
|
$ |
27.9 |
|
Share-based compensation |
|
(2.9 |
) |
|
(2.9 |
) |
||
Adjusted product development and engineering (Non-GAAP) |
|
$ |
24.0 |
|
|
$ |
25.0 |
|
|
|
|
|
|
||||
|
|
Low |
|
High |
||||
Diluted GAAP earnings per share |
|
$ |
0.21 |
|
|
$ |
0.27 |
|
Share-based compensation |
|
0.12 |
|
|
0.12 |
|
||
Transaction, restructuring, and acquisition related expenses |
|
0.01 |
|
|
0.01 |
|
||
Amortization of acquired intangibles |
|
0.06 |
|
|
0.06 |
|
||
Associated tax effect |
|
(0.02 |
) |
|
(0.04 |
) |
||
Diluted adjusted earnings per share (Non-GAAP) |
|
$ |
0.38 |
|
|
$ |
0.42 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190828005713/en/
(805) 480-2004
webir@semtech.com
Source: