What Happened:

Shares of semiconductor company Semtech (NASDAQ:SMTC) fell 6.32% in the morning session after the company announced it is delaying its quarterly earnings report (Form 10-Q) and conference call for the second quarter of fiscal year 2024. This delay is attributed to the ongoing goodwill impairment test and a valuation allowance assessment. Semtech anticipates submitting its Q2 Form 10-Q to the SEC by September 13, 2023. Furthermore, the initially planned conference call for September 7, 2023, will be rescheduled to a later date and time, with details to be announced in due course.

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What is the market telling us:

Semtech's shares are not very volatile than the market average and over the last year have had only 20 moves greater than 5%. The biggest move we wrote about over the last year was three months ago, when the stock gained 14.7% on the news that the company reported first-quarter results that beat analysts' revenue and earnings per share (EPS) estimates. Inventory levels improved significantly. 

On the other hand, there was some gross margin deterioration. Revenue guidance for the next quarter was below Consensus, while the EPS guidance was roughly inline. Management added that "we see signs of business stabilization...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". 

In addition, the company announced Paul Pickle as the new President and Chief Executive Officer to replace Mohan Maheswaran, who announced his retirement in March, 2023. Mr. Pickle has served as President and Chief Executive Officer and member of the Board of Directors of Lantronix since April 2019. Under his leadership, Lantronix experienced remarkable growth, with revenue expanding approximately threefold and market capitalization doubling. 

Overall it was a mixed quarter for the company. However, the market responded positively to the news of the new leadership, as reflected in the positive sentiment after the earnings announcements.

Semtech is down 16.5% since the beginning of the year, and at $24.23 per share it is trading 30.4% below its 52-week high of $34.82 from September 2022. Investors who bought $1,000 worth of Semtech's shares 5 years ago would now be looking at an investment worth $425.90.

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