Summary by Moomoo AI
Semtech Corporation reported strong Q3 FY2025 results with net sales of $236.8 million, up 10% sequentially. The company achieved record data center net sales of $43.1 million, increasing 58% quarter-over-quarter. Gross margin improved to 51.1% GAAP and 52.4% non-GAAP, while operating margin reached 7.5% GAAP and 18.3% non-GAAP.Financial performance showed GAAP net loss of $0.10 per share and non-GAAP earnings of $0.26 per share. The company generated positive operating and free cash flows, using proceeds to make principal prepayments on its credit facility. Adjusted EBITDA margin improved to 21.6%, up 280 basis points sequentially.Looking ahead to Q4 FY2025, Semtech projects net sales of $250 million ±$5 million with non-GAAP gross margin of 52.8% ±50 bps. The company expects continued growth momentum, particularly in AI-driven data center demand, which management views as a long-term growth driver.
