Semtech Corporation (NASDAQ:SMTC) has expedited vesting of balance shares of 586.956 from the warrant issued to Comcast Corporation (NASDAQ:CMCSA)’s subsidiary on October 5, 2016. The warrants issued to the Comcast’s subsidiary are fully vested now and a total of 869,565 shares can be exercised.
Comcast has successfully completed the roll-out of comprehensive LoRaWAN™ network. With the maturing of deployment, Comcast shifted the focus to high value strategic markets. However, these priorities were not forecasted at the time of framing the terms of the warrant.
Semtech has decided to expedite the vesting of balance unvested shares of the warrant to ensure appropriate allocation of the shares of Comcast and recognizing the network deployment as well as widespread use of the LoRaWAN open protocol’s accomplishments.
CEO and President of Semtech, Mr. Mohan Maheswaran commenting on the development said the company is very happy with the extensiveness and speed at which Comcast deployed its LoRaWan technology to activate the machineQ platform. The efforts put in by Comcast in deploying the LoRaWAN networks in various markets of the US are commendable. It helps to take LoRaWAN protocol as the standard for the deployment of LPWAN.
Semtech is now expected to record the expenses associated with the warrant amounting to $21.5 million.
Semtech Corporation Releases Earnings Update for Q4 Fiscal 2018
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The GAAP net sales of Semtech Corporation for the Q4 Fiscal 2018 is estimated at $140.6 million (down 6% when compared to same period of last year). The expenses amounting to $1.5 million towards the Comcast warrants are included in Q4 GAAP net sales. However, on annual basis, its sales increased to $587.8 million (up 8% when compared to 2017). The Comcast warrant expenses amounting to $16.2 million in the annual sales.
Brief Information about Semtech Corporation
Semtech Corporation is a leading provider of high performance analog/ mixed signal semiconductors as well as algorithms for use in enterprise computing, industrial as well as communications equipment. The global community and engineering community would equally benefit from its products. The company is striving to produce environment friendly products.