Semtech Corporation (SMTC) has reported an 187.52 percent jump in profit for the quarter ended Oct. 30, 2016. The company has earned $30.78 million, or $0.46 a share in the quarter, compared with $10.70 million, or $0.16 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $24.26 million, or $0.37 a share compared with $12.10 million or $0.19 a share, a year ago.
Revenue during the quarter grew 18.46 percent to $137.18 million from $115.81 million in the previous year period. Gross margin for the quarter contracted 99 basis points over the previous year period to 59.09 percent. Total expenses were 71.50 percent of quarterly revenues, down from 83.68 percent for the same period last year. This has led to an improvement of 1218 basis points in operating margin to 28.50 percent.
Operating income for the quarter was $39.10 million, compared with $18.90 million in the previous year period.
Mohan Maheswaran, Semtech's president and chief executive officer, stated, "Q3 of fiscal 2017 was another solid quarter for Semtech. The Company achieved significant year-over-year net sales growth while growing earnings at an even faster rate for the same period. The strength we are experiencing from exciting growth markets that include the Internet of Things, hyper-scale datacenters and mobile devices is expected to continue and contribute to a better than seasonal outlook for our fourth fiscal quarter. Our focus on divesting non-core assets while investing in new product platforms and maintaining Opex discipline should enable the Company to continue to leverage the growth we expect to see over the next several years."
For the fourth-quarter 2017, Semtech Corporation expects revenue to be in the range of $133.20 million to $141.20 million. The company expects adjusted revenue to be in the range of $134 million to $142 million. The company projects diluted earnings per share to be in the range of $0.13 to $0.17. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.33 to $0.37.
Operating cash flow improves significantly
Semtech Corporation has generated cash of $84.69 million from operating activities during the nine month period, up 25.26 percent or $17.08 million, when compared with the last year period.
Cash flow from investing activities was $15.60 million for the nine month period as against cash outgo of $55.11 million in the last year period.
The company has spent $14.16 million cash to carry out financing activities during the nine month period as against cash outgo of $50.48 million in the last year period.
Cash and cash equivalents stood at $297.94 million as on Oct. 30, 2016, up 54.89 percent or $105.58 million from $192.36 million on Oct. 25, 2015.
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