Semtech Corporation's SMTC third-quarter fiscal 2022 non-GAAP earnings of 74 cents per share surpassed the Zacks Consensus Estimate by 2.8%. The reported earnings increased 13.9% sequentially and 57.5% year over year.

Net sales of $194.9 million increased 5% sequentially and 27% from the prior-year quarter. The same also outpaced the Zacks Consensus Estimate qof $193 million.

Top-line growth was driven by strong momentum across industrial and high-end consumer markets served.

Semtech's LoRa business, Tri-Edge platform, 10G PON products, 5G wireless and broad-based protection platforms contributed well to its quarterly performance.

For the fiscal third quarter, shipments in Asia, North America and Europe represented 78%, 12% and 10% of net sales, respectively.

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Revenues by End Market

Net revenues from the infrastructure market, representing 34% of its total revenues, decreased 1% on a sequential basis due to a decline in data center revenues.

Revenues from the industrial market increased 17% from the prior quarter and represented 35% of total net revenues. The sequential increase is driven by strength in LoRa and broad-based protection businesses.

Net revenues from the high-end consumer market represented 31% of total revenues and increased 2% sequentially. The high-end consumer market consists of mobile devices and other consumer systems, representing net revenues of 20% and 11%, respectively.

Revenues by Product Group

Signal Integrity Product Group's revenues contributed 39% to total revenues. The reported figure increased 3% sequentially. The increase was driven by strong demand across PON and base station infrastructure markets.

Revenues from its Protection Product Group represented 29% of the total revenues. The figure was up 14% sequentially and 36% year over year. The increase was driven by strong consumer demand in Asia and North America.

Wireless and Sensing Product Group revenues, which contributed 32% to total revenues, increased 1% sequentially and 23% year over year. The increase was driven by record net sales of LoRa platform products.

Operating Results

The non-GAAP gross margin of 63.8% expanded 230 basis points (bps) year over year, driven by a more favorable product mix.

Fiscal third-quarter adjusted selling, general and administrative expenses increased 4.8% year over year to $34.2 million. Adjusted product development and engineering expenses increased 36.3% from the year-ago quarter to $33.3 million.