Semtech Corp (SMTC) has reported a 543.14 percent jump in profit for the quarter ended Jan. 29, 2017. The company has earned $8.02 million, or $0.12 a share in the quarter, compared with $1.25 million, or $0.02 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $24.48 million, or $0.37 a share compared with $10.80 million or $0.17 a share, a year ago.
Revenue during the quarter grew 18.06 percent to $140.03 million from $118.61 million in the previous year period. Gross margin for the quarter expanded 99 basis points over the previous year period to 59.63 percent. Total expenses were 89.08 percent of quarterly revenues, down from 97.35 percent for the same period last year. This has led to an improvement of 826 basis points in operating margin to 10.92 percent.
Operating income for the quarter was $15.29 million, compared with $3.15 million in the previous year period.
Mohan Maheswaran, Semtech's president and chief executive officer, stated, "We were pleased to deliver better than seasonal Q4 results that were once again at the upper end of our guidance led by growth in the enterprise computing, communications and industrial end-markets. The Company grew FY2017 non-GAAP net sales 12% over the prior year while delivering non-GAAP earnings growth at more than 5 times that rate by maintaining non-GAAP gross margins at the upper end of our target range and through Opex discipline. We enter FY2018 with tremendous momentum driven by our growth markets that include IoT, hyper-scale datacenters and mobile devices which should continue to drive our growth and help the Company to outperform the Industry and peers."
For the first-quarter, Semtech Corp expects revenue to be in the range of $138 million to $146 million. It expects adjusted revenue to be in the range of $142 million to $150 million. It projects diluted earnings per share to be in the range of $0.16 to $0.20. It projects diluted earnings per share to be in the range of $0.39 to $0.43 on an adjusted basis for the same period.
Operating cash flow improves
Semtech Corp has generated cash of $117.61 million from operating activities during the year, up 15.22 percent or $15.54 million, when compared with the last year.
The company has spent $13.52 million cash to meet investing activities during the year as against cash outgo of $66.83 million in the last year.
The company has spent $18.77 million cash to carry out financing activities during the year as against cash outgo of $53.77 million in the last year period.
Cash and cash equivalents stood at $297.13 million as on Jan. 29, 2017, up 40.28 percent or $85.32 million from $211.81 million on Jan. 31, 2016.
Working capital increases sharply
Semtech Corp has recorded an increase in the working capital over the last year. It stood at $315.45 million as at Jan. 29, 2017, up 32.92 percent or $78.12 million from $237.33 million on Jan. 31, 2016. Current ratio was at 3.57 as on Jan. 29, 2017, up from 3.28 on Jan. 31, 2016.
Debt comes down
Semtech Corp has recorded a decline in total debt over the last one year. It stood at $240.96 million as on Jan. 29, 2017, down 6.51 percent or $16.79 million from $257.75 million on Jan. 31, 2016. Total debt was 23.76 percent of total assets as on Jan. 29, 2017, compared with 28.28 percent on Jan. 31, 2016. Debt to equity ratio was at 0.40 as on Jan. 29, 2017, down from 0.49 as on Jan. 31, 2016. Interest coverage ratio improved to 4.44 for the quarter from 1.48 for the same period last year.
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