Company profile

Mohan R. Maheswaran
Incorporated in
Fiscal year end
IRS number

SMTC stock data



28 Aug 19
14 Oct 19
26 Jan 20


Company financial data Financial data

Quarter (USD) Jul 19 Apr 19 Jan 19 Oct 18
Revenue 137.15M 131.35M 160.01M 173.55M
Diluted EPS 0.08 0.2 0.2 0.18
Operating income 15.55M 12.82M 26.77M 41.87M
Net change in cash 537K -24.82M -116K 902K
Cash on hand 287.84M 287.3M 312.12M 312.24M
Cost of revenue 52.26M 50.08M 66.99M
Annual (USD) Jan 19 Jan 15
Revenue 627.2M 557.89M
Diluted EPS 0.92 0.41
Operating income 98.48M 42.26M
Net change in cash 81.79M
Cash on hand 312.12M 230.33M
Cost of revenue 250.17M 229.09M

Financial data from Semtech earnings reports

Financial report summary

  • Our future results may fluctuate, fail to match past performance or fail to meet expectations.
  • Downturns in the business cycle could adversely affect our revenues and profitability.
  • The average selling prices of products in our markets have historically decreased rapidly and will likely do so in the future, which could harm our revenue and gross margins.
  • Current global economic conditions and the potential changes in global economic policy could reduce demand for our products and have a material adverse impact on our business, operating results and financial condition.
  • Changes in government trade policies could have an adverse impact on our business or the business of our customers, which may materially adversely affect our business operations, sales or gross margins.
  • Business interruptions such as natural disasters could harm our business and have a material adverse effect on our operations.
  • We may experience other causes of business interruptions that may affect our operations and we may not have sufficient business interruption insurance to compensate us for losses that may occur.
  • We obtain many essential components and materials and certain critical manufacturing services from a limited number of suppliers and subcontractors, most of which are foreign-based entities.
  • Our products may be found to be defective, product liability claims may be asserted against us and we may not have sufficient liability insurance.
  • Obsolete inventories as a result of changes in demand for our products and change in life cycles of our products could adversely affect our business, operating results and financial condition.
  • We may be unsuccessful in developing and selling new products, which is central to our objective of maintaining and expanding our business.
  • Our customers require our products to undergo a lengthy and expensive qualification process without any assurance of product sales.
  • We may be unable to adequately protect our intellectual property rights.
  • We may suffer losses and business interruption if our products infringe the intellectual property rights of others.
  • We must commit resources to product production prior to receipt of purchase commitments and could lose some or all of the associated investment.
  • We sell and trade with foreign customers, which subjects our business to increased risks.
  • Our foreign currency exposures may change over time as the level of activity in foreign markets grows and could have an adverse impact upon financial results.
  • We may be subject to increased tax liabilities and an increased effective tax rate if we need to remit funds held by our foreign subsidiaries.
  • We are subject to export restrictions and laws affecting trade and investments.
  • We compete against larger, more established entities and our market share may be reduced if we are unable to respond to our competitors effectively.
  • Industry consolidation may lead to increased competition and may harm our operating results.
  • We receive a significant portion of our revenues from a small number of customers and the loss of any one of these customers or failure to collect a receivable from them could adversely affect our business.
  • Most of our authorized distributors, which collectively represent more than half of our net sales, can terminate their contract with us with little or no notice. The termination of a distributor could negatively impact our business, including net sales and accounts receivable.
  • Our inability to effectively control the sales of our products on the gray market could have a material adverse effect on us.
  • Failure to maintain effective internal control over financial reporting or disclosure controls and procedures could have a material adverse effect on our business and stock price.
  • Economic conditions and regulatory changes leading up to and following the United Kingdom’s likely exit from the European Union could have a material adverse effect on our business and results of operations.
  • Our failure to comply with any applicable environmental regulations could result in a range of consequences, including fines, suspension of production, excess inventory, sales limitations, and criminal and civil liabilities.
  • Our operating results could be adversely affected as a result of changes in our effective tax rates, the adoption of new U.S. or foreign tax legislation or exposure to additional tax liabilities, or by material differences between our forecasted annual effective tax rates and actual tax rates.
  • We may be subject to taxation and review of our compliance with income, value-added and other sales-type tax regulations in other jurisdictions which could negatively affect our operations.
  • We have limited experience with government contracting, which entails differentiated business risks.
  • Government investigations and inquiries from regulatory agencies could lead to enforcement actions, fines, restatement of our financial statements or other penalties and could result in litigation against us.
  • The loss of any of our key personnel or the failure to attract or retain specialized technical and management personnel could impair our ability to grow our business.
  • We face risks associated with companies we have acquired in the past and may acquire in the future.
  • We may be required to recognize additional impairment charges in the future which could have an adverse effect on our financial condition and operating results.
  • We have investments in entities that we do not control. Losses in the value of such investments could have an adverse effect on our financial condition or operating results.
  • To the extent that we have any interest in an entity for which we are required to consolidate, we would need to rely on those entities to timely deliver important financial information to us. In the event that the financial information is inaccurate, incomplete, or not timely, we may not be able to meet our financial reporting obligations as required by the SEC.
  • Restrictive covenants in the credit agreement ("Credit Agreement") governing the Credit Facility may restrict our ability to pursue our business strategies.
  • We rely on certain critical information systems for the operation of our business and a disruption in our information systems, including those related to cybersecurity, could adversely affect our business operations.
  • The costs associated with our indemnification of certain customers, distributors, and other parties could be higher in future periods.
  • Our stock price could be subject to extreme price fluctuations, and stockholders could have difficulty trading shares.
  • If securities or industry analysts do not publish research or reports about our business, or if they adversely change their recommendations regarding our common stock or if our operating results do not meet their expectations, the trading price of our common stock could decline.
  • Anti-takeover provisions in our Certificate of Incorporation and Bylaws could make an acquisition of us more difficult and may prevent attempts by our stockholders to replace or remove our current management.
  • We are subject to litigation risks which may be costly to defend and the outcome of which is uncertain and could adversely affect our business and financial condition.
Management Discussion
  • Domestic performance from continuing operations includes amortization of acquired intangible assets and higher levels of share-based compensation compared to foreign operations.
  • Net sales for the second quarter of fiscal year 2020 were $137.1 million, a decrease of 16.0% compared to $163.2 million for the second quarter of fiscal year 2019. During the second quarter of fiscal year 2020, China-based demand weakened as we experienced declines driven by weakness across all markets, primarily due to geopolitical headwinds driven by export restrictions and tariffs imposed by the U.S. government. Enterprise computing declined due to below-seasonal PON demand in China and lower data center demand at cloud computing and hyper scale providers. High-end consumer declined due to lower China-based demand for proximity sensing solutions. The communications end market declined on softer demand for base stations for the wireless infrastructure market.
  • Based on bookings trends and our backlog entering the quarter, we estimate net sales for the third quarter of fiscal year 2020 to be between $135.0 million and $145.0 million. The range of guidance reflects continued uncertainty regarding macro-related events associated with the geopolitical headwinds discussed above, including approximately $4.0 million in potential reduced shipments and associated reduced demand related to the executive order preventing shipments to Huawei.
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