In This Story
Semtech Corporation (SMTC+9.01%) has submitted its 10-Q filing for the quarterly period ended October 27, 2024.
The filing reports net sales of $236.8 million for the third quarter of fiscal year 2025, an increase of 17.9% compared to $200.9 million in the same quarter of the previous year. This growth was primarily driven by higher sales in the Signal Integrity and Analog Mixed Signal and Wireless segments.
Gross profit for the quarter was $121.0 million, up from $93.0 million in the previous year. The gross margin improved to 51.1% from 46.3% due to increased sales volume and reduced amortization of acquired technology.
Operating expenses for the quarter were $103.2 million, slightly down from $105.3 million in the previous year. This decrease was mainly due to reduced restructuring and intangible amortization expenses.
The company reported a net loss of $7.6 million for the quarter, compared to a net loss of $38.3 million in the previous year. The improvement was attributed to higher sales and gross profit, as well as lower operating expenses.
Interest expense for the quarter was $20.8 million, down from $28.3 million in the previous year, primarily due to interest savings from the partial extinguishment of convertible senior notes.
Semtech's cash and cash equivalents at the end of the quarter were $136.5 million, with an available undrawn borrowing capacity of $287.2 million under its revolving credit facility.
The filing also notes that the company continues to address material weaknesses in its internal control over financial reporting, primarily related to the integration of Sierra Wireless, which was acquired in January 2023.
Semtech's management remains committed to addressing these issues and believes progress has been made in remediation efforts.
The company anticipates that its existing cash, projected operating cash flows, and available borrowing capacity will be adequate to meet its operating needs and commitments over the next twelve months.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Semtech Corporation quarterly 10-Q report dated December 3, 2024. To report an error, please email earnings@qz.com.