Semtech Corporation (Nasdaq: SMTC), a leading supplier of analog and mixed-signal semiconductors, today reported unaudited financial results for its fourth quarter and fiscal year 2014, ended January 26, 2014.
Net revenue for the fourth quarter of fiscal year 2014 was $126.5 million, down 16 percent from the fourth quarter of fiscal year 2013 and down 10 percent from the third quarter of fiscal year 2014. Net revenue for the full fiscal year 2014 was $595.0 million, up 3 percent from fiscal year 2013.
For the fourth quarter of fiscal year 2014, the Company recorded a net loss, computed in accordance with U.S. generally accepted accounting principles (GAAP), of $210.8 million or a loss of $3.12 per diluted share. The Company also recorded $178.9 million in restructuring and impairment related charges resulting from its strategic decision to reduce the level of investment made in the optical long-haul market. These special charges include non-cash items of $147.4 million for the impairment of goodwill and other intangible assets, $21.9 million for inventory and fixed asset reserves and $6.5 million for contract commitments. These charges additionally include $3.1 million of one-time cash items associated with severance and contract cancelation liabilities.
Also during the fourth quarter of fiscal year 2014, Semtech recorded a $53.2 million valuation reserve against its deferred tax assets.This compares to GAAP net income of $13.1 million or $0.19 per diluted share in the fourth quarter of fiscal year 2013 and GAAP net income of $12.5 million or $0.18 per diluted share in the third quarter of fiscal year 2014. For the full fiscal year 2014, GAAP net loss was $164.5 million or a loss of $2.44 per diluted share, down from $41.9 million or $0.62 per diluted share in fiscal year 2013. GAAP gross profit margin for the fourth quarter of fiscal year 2014 was 42.5 percent compared to 58.4 percent in the fourth quarter of fiscal year 2013 and 59.1 percent in the third quarter of fiscal year 2014. GAAP gross profit margin for the fourth quarter of fiscal year 2014 was negatively impacted by inventory reserves and asset impairments related to the Company’s business realignment, which lowered gross margin by 16.7 percentage points. GAAP gross profit margin for the full fiscal year 2014 was 56.3 percent compared to 54.4 percent in fiscal year 2013.
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