Semtech : FY 2024 Q1 Conference Call Transcript

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:

Anojja Shah

Semtech Corporation

1. [e-mail]

Semtech Announces First Quarter of Fiscal Year 2024 Results

CAMARILLO, Calif., June 7, 2023-Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems and cloud connectivity service provider, today reported unaudited financial results for its first quarter of fiscal year 2024, which ended April 30, 2023.

Highlights for the First Quarter of Fiscal Year 2024

• Net sales of $236.5 million, an increase of 41.2% sequentially and 17.0% year-over-year
• GAAP gross margin of 43.5% and Non-GAAP gross margin of 48.5%
• GAAP diluted loss per share of $0.46 and Non-GAAP diluted earnings per share of $0.02
• Published our first Corporate Sustainability Report showcasing our commitment to sustainability and products for environmental and social good
• On May 30, 2023, the Company announced the appointment of Paul H. Pickle as the next Semtech president and chief executive officer
• On June 6, 2023, the Company entered into a second amendment to its existing credit agreement that provides, among other things, additional cushion with respect to certain financial covenants

Results on a GAAP basis for the First Fiscal Quarter 2024

• Net sales were $236.5 million
• GAAP Gross margin was 43.5%
• GAAP SG&A expense was $58.1 million
• GAAP R&D expense was $51.8 million
• GAAP Operating margin was (5.0)%
• GAAP Interest expense was $20.5 million

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2	Semtech Announces First Quarter of Fiscal Year 2024 Results

• GAAP Net loss attributable to common stockholders was $29.4 million or $0.46 diluted loss per share

To facilitate a complete understanding of comparable financial performance between periods, the Company also presents performance results that exclude certain non-cash items and items that are not considered reflective of the Company's core results over time. These non-GAAP financial measures exclude certain items and are described below under "Non-GAAP Financial Measures."

Results on a Non-GAAPbasis for the First Fiscal Quarter 2024 (see the list of non-GAAP financial measures and the reconciliation of these measures to the most comparable GAAP measures set forth in the tables below under "Supplemental Information: Reconciliation of GAAP to Non-GAAP Results")

• Non-GAAPGross margin was 48.5%
• Non-GAAPSG&A expense was $46.2 million
• Non-GAAPR&D expense was $46.5 million
• Non-GAAPOperating margin was 9.3%
• Non-GAAPNet income attributable to common stockholders was $1.5 million or $0.02 diluted earnings per share

"Semtech exceeded the midpoint of our revenue and earnings guidance as we see signs of business stabilization," said Mohan Maheswaran, Semtech's President and Chief Executive Officer. "As we continue to navigate this challenging macro-economic environment, we are taking steps to improve our operational efficiency and financial performance while focusing on executing our plans. With an expanded highly differentiated IoT portfolio, combined with our best-in-class High Performance Analog portfolio, we are well positioned to emerge stronger from this current cycle."

Second Fiscal Quarter 2024 Outlook

Both the GAAP and non-GAAP second fiscal quarter 2024 outlook below take into account, based on the Company's current estimates, export restrictions, inflationary pressure and other macroeconomic conditions. The Company is unable to predict the full impact such challenges may have on its future results of operations.

GAAP Second Fiscal Quarter 2024 Outlook

• Net sales are expected to be in the range of $233.0 million to $243.0 million
• GAAP Gross margin is expected to be in the range of 42.6% to 44.8%
• GAAP SG&A expense is expected to be in the range of $63.2 million to $65.2 million
• GAAP R&D expense is expected to be in the range of $48.0 million to $50.0 million
• GAAP Intangible amortization expense is expected to be approximately $15.9 million
• GAAP Interest and other expense, net is expected to be approximately $23.2 million

3	Semtech Announces First Quarter of Fiscal Year 2024 Results

• Fully-dilutedshare count is expected to be approximately 64.1 million shares
• Share-basedcompensation is expected to be approximately $12.7 million, categorized as follows: $0.5 million cost of sales, $8.2 million SG&A, and $4.0 million R&D
• Transaction and integration expenses are expected to be approximately $10.0 million
• Capital expenditures are expected to be approximately $11.1 million
• Depreciation expense is expected to be approximately $9.1 million

Non-GAAPSecond Fiscal Quarter 2024 Outlook (see the list of non-GAAP financial measures and the reconciliation of Non-GAAP Gross margin, Non-GAAP SG&A expense, and Non-GAAP R&D expense to the most comparable GAAP measures set forth in the tables below under "Reconciliation of GAAP to Non-GAAP Outlook")

• Non-GAAPGross margin is expected to be in the range of 47.5% to 49.5%
• Non-GAAPSG&A expense is expected to be in the range of $45.0 million to $47.0 million
• Non-GAAPR&D expense is expected to be in the range of $44.0 million to $46.0 million
• Non-GAAPnormalized tax rate for fiscal year 2024 is expected to be approximately 12%
• Non-GAAPDiluted (loss) earnings per share is expected to be in the range of $(0.02) to $0.06

The Company is unable to include a reconciliation of the forward-lookingnon-GAAP normalized tax rate and non-GAAP Diluted loss per share to the corresponding GAAP measures as this is not available without unreasonable efforts due to the high variability and low visibility with respect to the impact of share-based awards and the amortization of acquisition-related intangible assets that are excluded from these non-GAAP measures. The Company expects the variability of the above charges to have a potentially significant impact on its GAAP financial results.

Webcast and Conference Call

Semtech will be hosting a conference call today to discuss its first fiscal quarter 2024 results at 2:00 p.m. Pacific time. The dial-in number for the call is [phone]. Please use conference ID 13736081. An audio webcast will be available on Semtech's website at www.semtech.comin the "Investor Relations" section under "Investor News." A replay of the call will be available through July 5, 2023 at the same website or by calling [phone] and entering conference ID 13736081.

4	Semtech Announces First Quarter of Fiscal Year 2024 Results

Non-GAAP Financial Measures

To supplement the Company's consolidated financial statements prepared in accordance with GAAP, this release includes a presentation of select non-GAAP financial measures. The Company's non-GAAP measures of gross margin, SG&A expense, R&D expense, operating margin, net (loss) income attributable to common stockholders, diluted (loss) earnings per share and normalized tax rate exclude the following items, if any:

• Share-basedcompensation
• Amortization of purchased intangibles, impairments and credit loss reserves
• Restructuring and transaction costs (including costs associated with the acquisition of Sierra Wireless), and other acquisition or disposition-related gains or losses
• Share-basedcompensation acceleration expense related to the acquisition of Sierra Wireless
• Litigation expenses or dispute settlement charges or gains
• Cumulative other reserves associated with historical activity including environmental and pension
• Equity method (loss) income
• Interest income from debt investments

To provide additional insight into the Company's second quarter outlook, this release also includes a presentation of forward-lookingnon-GAAP financial measures. Management believes that the presentation of these non-GAAP measures provides useful information to investors regarding the Company's financial condition and results of operations. These non-GAAP financial measures are adjusted to exclude the items identified above because such items are either operating expenses that would not otherwise have been incurred by the Company in the normal course of the Company's business operations, or are not reflective of the Company's core results over time. These excluded items may include recurring as well as non-recurring items, and no inference should be made that all of these adjustments, charges, costs or expenses are unusual, infrequent or non-recurring. For example: certain restructuring and integration-related expenses (which consist of employee termination costs, facility closure or lease termination costs, and contract termination costs) may be considered recurring given the Company's ongoing efforts to be more cost effective and efficient; certain acquisition and disposition-related adjustments or expenses may be deemed recurring given the Company's regular evaluation of potential transactions and investments; and certain litigation expenses or dispute settlement charges or gains (which may include estimated losses for which the Company may have established a reserve, as well as any actual settlements, judgments, or other resolutions against, or in favor of, the Company related to litigation, arbitration, disputes or similar matters, and insurance recoveries received by the Company related to such matters) may be viewed as recurring given that the Company may from time to time be involved in, and may resolve, litigation, arbitration, disputes, and similar matters.

5	Semtech Announces First Quarter of Fiscal Year 2024 Results

Notwithstanding that certain adjustments, charges, costs or expenses may be considered recurring, in order to provide meaningful comparisons, the Company believes that it is appropriate to exclude such items because they are not reflective of the Company's core results and tend to vary based on timing, frequency and magnitude.

These non-GAAP financial measures are provided to enhance the user's overall understanding of the Company's comparable financial performance between periods. In addition, the Company's management generally excludes the items noted above when managing and evaluating the performance of the business. The financial statements provided with this release include reconciliations of these non-GAAP financial measures to their most comparable GAAP measures for the first and fourth quarters of fiscal year 2023 and the first quarter of fiscal year 2024, along with a reconciliation of forward-lookingnon-GAAP measures (other than the non-GAAP normalized tax rate and non-GAAP Diluted (loss) earnings per share) to their most comparable GAAP measures for the second quarter of fiscal year 2024. The Company adopted a full-year, normalized tax rate for the computation of the non-GAAP income tax provision in order to provide better comparability across the interim reporting periods by reducing the quarterly variability in non-GAAP tax rates that can occur throughout the year. In estimating the full-yearnon-GAAP normalized tax rate, the Company utilized a full-year financial projection that considers multiple factors such as changes to the Company's current operating structure, existing positions in various tax jurisdictions, the effect of key tax law changes, and other significant tax matters to the extent they are applicable to the full fiscal year financial projection. In addition to the adjustments described above, this normalized tax rate excludes the impact of share-based awards and the amortization of acquisition-related intangible assets. For fiscal year 2024, the Company's projected non-GAAP normalized tax rate is 12% and will be applied to each quarter of fiscal year 2024. The Company's non-GAAP normalized tax rate on non-GAAP net income may be adjusted during the year to account for events or trends that the Company believes materially impact the original annual non-GAAP normalized tax rate including, but not limited to, significant changes resulting from tax legislation, acquisitions, entity structures or operational changes and other significant events. These additional non-GAAP financial measures should not be considered substitutes for any measures derived in accordance with GAAP and may be inconsistent with similar measures presented by other companies.

Forward-Looking and Cautionary Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on the Company's current expectations, estimates and projections about its operations, industry, financial condition, performance, results of operations, and liquidity. Forward-looking statements are statements other than historical