CAMARILLO, Calif. — (BUSINESS WIRE) — March 29, 2023 — Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems and Cloud connectivity service provider, today reported unaudited financial results for its fourth quarter and fiscal year 2023, which ended January 29, 2023.

Highlights for the Fourth Quarter of Fiscal Year 2023

• Completed the acquisition of Sierra Wireless, a leading IoT connectivity solution provider, for total purchase price consideration of $1.3 billion

• Semtech, excluding the results of Sierra Wireless ("Semtech Organic"), net sales of $152.5 million, better than the midpoint of the Company's guidance. Sierra Wireless-only post-acquisition net sales of $15.0 million

• Semtech Organic GAAP gross margin of 63.5%, and non-GAAP gross margin of 64.7%

• Record 10G PON net sales

• LoRa®-enabled net sales of $40.8 million

• Amazon expands their commitment to LoRa with the opening of the Sidewalk network to device makers and developers, as well as new AWS services for LoRa and LoRaWAN®

Highlights for Fiscal Year 2023

• Record Semtech Organic net sales of $741.5 million

• Combined Semtech and Sierra Wireless net sales of $756.5 million

• Semtech Organic GAAP gross margin of 64.1%, an increase of 190 bps year-over-year

• Semtech Organic non-GAAP gross margin of 65.1%, an increase of 180 bps year-over-year

• Semtech Organic GAAP and non-GAAP operating margins of 20.8% and 28.7%, respectively

• Semtech Organic GAAP diluted earnings per share of $1.78 and record non-GAAP diluted earnings per share of $2.82

• Record LoRa-enabled revenue of $187 million, up 40% year-over-year

• Cumulative LoRa-connected end points of approximately 300 million units

• Record Signal Integrity product group net sales of approximately $304 million, up 4.5% driven by the continued growth of PON-X™

• Record Industrial Telecom and Automotive net sales of $80.1 million, or 9.3% growth year-over-year

• Tri-Edge™ selected by major North American Hyperscale Data Center Provider in a new, high-volume, multi-year program beginning in the second half of fiscal year 2024

Results on a GAAP basis for the Fourth Quarter and Fiscal Year 2023

($ in millions, except for diluted (loss) earnings per share data)