Published: March 10, 2010
Semtech Announces Fourth Quarter of Fiscal Year 2010 Results
CAMARILLO, Calif. - (BUSINESS WIRE) - SEMTECH CORPORATION (NASDAQ: SMTC), a leading supplier of high
performance analog and mixed-signal semiconductors, today reported
un-audited financial results for the fourth quarter of fiscal year 2010
that ended January 31, 2010. As previously announced, on December 9,
2009 Semtech completed its acquisition of Sierra Monolithics, Inc.
(SMI), a leading supplier of high-performance ICs and solutions to the
core communications infrastructure and leading edge defense markets.
Financial results for the fourth quarter of fiscal year 2010 include the
contribution from SMI during the stub period between December 10, 2009
and the end of the fourth quarter of fiscal year 2010.
Net revenues for the fourth quarter of fiscal year 2010 were $85.0
million, up 35.6 percent from the fourth quarter of fiscal year 2009 and
up 13.1 percent when compared to the third quarter of fiscal year 2010
driven by strong organic growth and the contribution from SMI.
Net income for the fourth quarter of fiscal year 2010, computed in
accordance with U.S. generally accepted accounting principles (GAAP),
was $9.5 million or 15 cents per diluted share. GAAP net income was $6.3
million or 10 cents per diluted share in the fourth quarter of fiscal
year 2009 and was a loss of $20.9 million or 34 cents per share in the
third quarter of fiscal year 2010. The GAAP net loss for the third
quarter of fiscal year 2010 reflected the change in management's prior
assertions regarding the amount of foreign subsidiary earnings
considered to be permanently reinvested offshore as a result of the
pending acquisition of SMI. This change in assertion resulted in a net
increase of $32.8 million in the tax provision for the third quarter of
fiscal year 2010.
GAAP gross profit margin for the fourth quarter of fiscal year 2010 was
53.9 percent compared to 53.2 percent in the fourth quarter of fiscal
year 2009 and 55.1 percent in the third quarter of fiscal year 2010.
In the fourth quarter of fiscal year 2010, our provision for income
taxes benefited from foreign exchange losses and the release of reserves
for uncertain tax positions. The GAAP EPS impact of these items was
approximately 3 cents per diluted share.
To facilitate the complete understanding of comparable financial
performance between periods, many one-time items recorded this fiscal
quarter are reported in this release and will be reported in future
releases. The items below have been excluded from Non-GAAP results:
-
Stock-based compensation expense
-
Transaction and integration related expenses
-
Expenses related to class action litigation and ongoing stock option
related matters net of insurance recoveries
-
Fair value inventory adjustments made as part of the purchase price
allocation
-
Amortization of acquisition related intangible assets
-
Certain restructuring expenses
-
An insurance recovery associated with a business interruption claim
related to the 2008 fire at our Reynosa facility
Excluding the items listed above, Non-GAAP net income for the fourth
quarter of fiscal year 2010 was $18.9 million or 30 cents per diluted
share. Non-GAAP net income was $8.3 million or 14 cents per diluted
share in the fourth quarter of fiscal year 2009 and was $16.2 million or
26 cents per diluted share in the third quarter of fiscal year 2010.
Non-GAAP gross profit margin for the fourth quarter of fiscal year 2010
was 56.6 percent. Non-GAAP gross profit margin for the fourth quarter of
fiscal year 2009 was 53.5 percent and 55.4 percent in the third quarter
of fiscal year 2010.
Semtech had $162.2 million of cash, cash equivalents and marketable
securities as of January 31, 2010, which was down from $316.3 million at
the end of the third quarter of fiscal year 2010 reflecting the $180.0
million cash payment in the quarter to acquire SMI.
Mohan Maheswaran, Semtech's President and Chief Executive Officer,
commented, "Semtech continues to perform superbly. Q4 was another record
quarter for us and 2010 was another very strong year despite the
challenges of the first half. As we enter FY11, our 50th
anniversary as a company, we see the demand across all our product
groups and all target segments strengthen. We are excited about the
opportunity that lays ahead for us to drive further top line growth,
expand gross margins and accelerate our earnings and create a truly
differentiated company."
The results announced today are preliminary, as the annual audit by the
Company's independent registered public accounting firm is still
underway. As such, these results are subject to revision until the audit
is completed and the Company files its Annual Report on Form 10-K.
First Quarter Outlook
Semtech estimates net sales for the first quarter, which ends May 2,
2010, will increase 7 percent to 13 percent on a sequential basis. GAAP
earnings for the first quarter of fiscal year 2011 are expected to be 13
to 16 cents per diluted share.
Non-GAAP earnings for the first quarter are expected to be 27 cents to
30 cents per diluted share. Non-GAAP earnings for the first quarter
exclude stock-based compensation expense, amortization of intangible
assets, fair value inventory adjustments, acquisition related costs,
certain legal expenses and other discrete items.
About Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements prepared
in accordance with GAAP, this release includes a non-GAAP presentation
of gross profit, net income and earnings per diluted share. All of these
non-GAAP measures exclude stock-based compensation, acquisition related
amortization of intangibles, and other items detailed above. These
non-GAAP 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 such
items in managing and evaluating the performance of the business. A
further discussion of these non-GAAP financial measures can be found
above. Reconciliations of GAAP results for the fourth quarter and twelve
months of fiscal years 2010 and 2009 appear with the financial
statements later in this release. These additional 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 report contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended (the "Securities
Act" ), and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements are statements other than historical
information or statements of current condition and relate to matters
such as future financial performance, future operational performance,
the anticipated impact of specific items on future earnings, and our
plans, objectives and expectations, including but not limited to our
plans, objectives and expectations with respect to SMI and its business.
These forward-looking statements are identified by the use of such terms
and phrases as "intends," "goal," "estimate, "expect," "project,"
"plans," "anticipates," "should," "will," "designed to," "believe," and
other similar expressions which generally identify forward-looking
statements. Forward-looking statements involve known and unknown risks
and uncertainties that could cause actual results and events to differ
materially from those projected. Important factors that could cause
actual results to differ materially include, but are not limited to: the
success of near and longer term integration efforts between the combined
companies; competitive changes in the market place applicable to the
products of SMI, including, but not limited to the pace of growth or
adoption rates of applicable products or technologies, shifts in focus
among target customers, and other comparable changes in projected or
anticipated markets; the depth, extent and duration of current and
anticipated world wide economic uncertainty, at both a macro level, and
as it impacts both the Company's historical products, industry, and
market sector, as well as those of SMI following closing of the
transaction, and the Company's ability to forecast and achieve
anticipated revenues and earnings estimates in light of continuing
economic uncertainty, including estimates applicable to SMI, as well as
resulting from the integration of SMI's financial performance and
results into the Company's full financial results. Additionally,
forward-looking statements should be considered in conjunction with the
cautionary statements contained in the "Risk Factors" section and
elsewhere in the Company's Annual Report on Form 10-K for the fiscal
year ended January 25, 2009, in the Company's other filings with the
SEC, and in material incorporated therein by reference. In light of the
significant uncertainties inherent in the forward-looking information
included herein, any such forward-looking information should not be
regarded as representations by the Company that its objectives or plans
will be achieved or that any of its operating expectations or financial
forecasts will be realized. Investors are cautioned not to place undue
reliance on any forward-looking information contained herein. The
Company assumes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
About Semtech
Semtech Corporation is a leading supplier of analog and mixed-signal
semiconductors for high-end consumer, computing, communications and
industrial equipment. Products are designed to benefit the engineering
community as well as the global community. The company is dedicated to
reducing the impact it, and its products, have on the environment.
Internal green programs seek to reduce waste through material and
manufacturing control, use of green technology and designing for
resource reduction. Publicly traded since 1967, Semtech is listed on the
NASDAQ Global Select Market under the symbol SMTC. For more information,
visit http://www.semtech.com.
|
SEMTECH CORPORATION
GAAP CONSOLIDATED STATEMENTS OF INCOME
(Table in thousands - except per share amount)
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
Jan 31,
|
|
Jan 26,
|
|
Oct 25
|
|
|
Jan 31,
|
|
Jan 26,
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2009
|
|
|
|
2010
|
|
2009
|
|
|
|
Q4 2010
|
|
Q4 2009
|
|
Q3 2010
|
|
|
Q4 2010
|
|
Q4 2009
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
85,019
|
|
|
$
|
62,695
|
|
$
|
75,147
|
|
|
|
$
|
286,560
|
|
$
|
294,820
|
|
Cost of sales
|
|
|
39,228
|
|
|
|
29,345
|
|
|
33,776
|
|
|
|
|
130,514
|
|
|
135,233
|
|
Gross profit
|
|
|
45,791
|
|
|
|
33,350
|
|
|
41,371
|
|
|
|
|
156,046
|
|
|
159,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
25,129
|
|
|
|
16,124
|
|
|
18,471
|
|
|
|
|
77,448
|
|
|
72,890
|
|
Product development and engineering
|
|
|
13,707
|
|
|
|
9,771
|
|
|
10,467
|
|
|
|
|
44,847
|
|
|
41,405
|
|
Acquisition related items
|
|
|
1,440
|
|
|
|
273
|
|
|
303
|
|
|
|
|
2,348
|
|
|
1,091
|
|
Restructuring charges
|
|
|
88
|
|
|
|
-
|
|
|
50
|
|
|
|
|
486
|
|
|
2,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses
|
|
|
40,363
|
|
|
|
26,168
|
|
|
29,291
|
|
|
|
|
125,130
|
|
|
117,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
5,428
|
|
|
|
7,182
|
|
|
12,080
|
|
|
|
|
30,916
|
|
|
41,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income, net
|
|
|
346
|
|
|
|
403
|
|
|
1,136
|
|
|
|
|
3,054
|
|
|
4,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
|
|
5,774
|
|
|
|
7,585
|
|
|
13,216
|
|
|
|
|
33,970
|
|
|
46,178
|
|
Provision for taxes (credit)
|
|
|
(3,705
|
)
|
|
|
1,314
|
|
|
34,103
|
|
|
|
|
33,014
|
|
|
8,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
9,479
|
|
|
$
|
6,271
|
|
$
|
(20,887
|
)
|
|
|
$
|
956
|
|
$
|
37,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (loss) :
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.15
|
|
|
$
|
0.10
|
|
$
|
(0.34
|
)
|
|
|
$
|
0.02
|
|
$
|
0.61
|
|
Diluted
|
|
$
|
0.15
|
|
|
$
|
0.10
|
|
$
|
(0.34
|
)
|
|
|
$
|
0.02
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
61,238
|
|
|
|
60,291
|
|
|
61,030
|
|
|
|
|
60,779
|
|
|
61,249
|
|
Diluted
|
|
|
62,501
|
|
|
|
60,611
|
|
|
61,030
|
|
|
|
|
61,676
|
|
|
61,999
|
|
|
|
SEMTECH CORPORATION
CONSOLIDATED BALANCE SHEETS
(Table in thousands)
|
|
|
|
|
|
Jan 31,
|
|
Jan 26,
|
|
Oct 25
|
|
|
|
2010
|
|
2009
|
|
2009
|
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
80,598
|
|
$
|
147,666
|
|
$
|
103,053
|
|
Temporary investments
|
|
55,462
|
|
|
98,735
|
|
|
167,540
|
|
Receivables, less allowances
|
|
31,163
|
|
|
27,467
|
|
|
25,501
|
|
Inventories
|
|
33,819
|
|
|
27,986
|
|
|
25,428
|
|
Deferred income taxes
|
|
11,808
|
|
|
4,287
|
|
|
-
|
|
Other current assets
|
|
5,964
|
|
|
7,561
|
|
|
8,101
|
|
Total Current Assets
|
|
218,814
|
|
|
313,702
|
|
|
329,623
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
38,063
|
|
|
31,786
|
|
|
34,472
|
|
Long-term investments
|
|
26,163
|
|
|
12,414
|
|
|
45,727
|
|
Deferred income taxes
|
|
7,153
|
|
|
25,544
|
|
|
9,894
|
|
Goodwill
|
|
129,651
|
|
|
25,540
|
|
|
25,540
|
|
Other intangibles
|
|
84,343
|
|
|
2,091
|
|
|
3,483
|
|
Other assets
|
|
10,107
|
|
|
9,718
|
|
|
9,771
|
|
Total Assets
|
|
514,294
|
|
$
|
420,795
|
|
$
|
458,510
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
23,643
|
|
$
|
10,653
|
|
$
|
19,390
|
|
Accrued liabilities
|
|
35,656
|
|
|
15,915
|
|
|
16,971
|
|
Income taxes payable
|
|
8,512
|
|
|
2,108
|
|
|
2,595
|
|
Deferred revenue
|
|
3,276
|
|
|
2,808
|
|
|
2,368
|
|
Accrued taxes
|
|
2,609
|
|
|
727
|
|
|
3,247
|
|
Deferred income taxes
|
|
1,332
|
|
|
1,604
|
|
|
15,778
|
|
Total Current Liabilities
|
|
75,028
|
|
|
33,815
|
|
|
60,349
|
|
|
|
|
|
|
|
|
|
Deferred income taxes - non current
|
|
16,505
|
|
|
101
|
|
|
101
|
|
Accrued taxes
|
|
9,497
|
|
|
3,563
|
|
|
1,329
|
|
Other long-term liabilities
|
|
7,523
|
|
|
5,296
|
|
|
7,428
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
405,741
|
|
|
378,020
|
|
|
389,303
|
|
Total Liabilities & Equity
|
|
514,294
|
|
$
|
420,795
|
|
$
|
458,510
|
|
|
|
SEMTECH CORPORATION
Supplemental Information - Notes to Consolidated GAAP
Statements of Income
(Table in thousands)
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
Jan 31,
|
|
Jan 26,
|
|
Oct 25
|
|
|
Jan 31,
|
|
Jan 26,
|
|
|
|
2010
|
|
2009
|
|
2009
|
|
|
2010
|
|
2009
|
|
Stock Based Compensation Expense
|
|
Q4 2010
|
|
Q4 2009
|
|
Q3 2010
|
|
|
Q4 2010
|
|
Q4 2009
|
|
(in thousands)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
Cost of sales
|
|
$
|
225
|
|
$
|
221
|
|
$
|
284
|
|
|
$
|
1,168
|
|
$
|
1,389
|
|
Selling, general and administrative
|
|
$
|
3,964
|
|
$
|
1,541
|
|
$
|
2,658
|
|
|
$
|
13,566
|
|
$
|
10,400
|
|
Product development and engineering
|
|
$
|
1,925
|
|
$
|
872
|
|
$
|
1,160
|
|
|
$
|
5,201
|
|
$
|
3,935
|
|
Total stock-based compensation
|
|
$
|
6,114
|
|
$
|
2,635
|
|
$
|
4,102
|
|
|
$
|
19,935
|
|
$
|
15,724
|
|
|
|
SEMTECH CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT
(Table in thousands)
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
Jan 31,
|
|
Jan 26,
|
|
Oct 25
|
|
|
Jan 31,
|
|
Jan 26,
|
|
|
|
2010
|
|
2009
|
|
2009
|
|
|
2010
|
|
2009
|
|
|
|
Q4 2010
|
|
Q4 2009
|
|
Q3 2010
|
|
|
Q4 2010
|
|
Q4 2009
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, as reported (GAAP)
|
|
45,791
|
|
$
|
33,350
|
|
41,371
|
|
|
156,046
|
|
$
|
159,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to GAAP gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
225
|
|
|
221
|
|
284
|
|
|
1,168
|
|
|
1,389
|
|
Fair value adjustment related to acquired inventory
|
|
2,088
|
|
|
0
|
|
0
|
|
|
2,088
|
|
|
0
|
|
Non-GAAP Gross profit
|
|
48,104
|
|
|
33,571
|
|
41,655
|
|
|
159,301
|
|
|
160,976
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME
(Table in thousands - except per share amounts)
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
Jan 31,
|
|
Jan 26,
|
|
Oct 25
|
|
|
Jan 31,
|
|
Jan 26,
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
2009
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
Supplemental Information
|
|
Q4 2010
|
|
Q4 2009
|
|
Q3 2010
|
|
|
Q4 2010
|
|
Q4 2009
|
|
(in thousands)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss), as reported (GAAP)
|
|
$
|
9,479
|
|
|
$
|
6,271
|
|
|
$
|
(20,887
|
)
|
|
|
$
|
956
|
|
|
$
|
37,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to GAAP net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based compensation expense
|
|
|
6,114
|
|
|
|
2,635
|
|
|
|
4,102
|
|
|
|
|
19,935
|
|
|
|
15,724
|
|
|
Transaction and integration expenses
|
|
|
3,422
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
3,422
|
|
|
|
0
|
|
|
Option and restatement related expenses
|
|
|
2,185
|
|
|
|
491
|
|
|
|
1,078
|
|
|
|
|
3,332
|
|
|
|
1,592
|
|
|
Fair value adjustment related to acquired inventory
|
|
|
2,088
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
2,088
|
|
|
|
0
|
|
|
Acquisition related items
|
|
|
1,440
|
|
|
|
273
|
|
|
|
303
|
|
|
|
|
2,348
|
|
|
|
1,091
|
|
|
Restructuring cost
|
|
|
88
|
|
|
|
-
|
|
|
|
50
|
|
|
|
|
486
|
|
|
|
2,310
|
|
|
Business interruption insurance recovery
|
|
|
(1,360
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(1,360
|
)
|
|
|
-
|
|
|
Total before taxes
|
|
|
13,977
|
|
|
|
3,399
|
|
|
|
5,533
|
|
|
|
|
30,251
|
|
|
|
20,717
|
|
|
Associated tax effect
|
|
|
(4,586
|
)
|
|
|
(1,407
|
)
|
|
|
31,597
|
|
|
|
|
24,171
|
|
|
|
(5,729
|
)
|
|
Total of supplemental information net of taxes
|
|
|
9,391
|
|
|
|
1,992
|
|
|
|
37,130
|
|
|
|
|
54,422
|
|
|
|
14,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income on a Non-GAAP Basis
|
|
$
|
18,870
|
|
|
$
|
8,263
|
|
|
$
|
16,243
|
|
|
|
$
|
55,378
|
|
|
$
|
52,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted GAAP earnings per share
|
|
$
|
0.15
|
|
|
$
|
0.10
|
|
|
$
|
(0.34
|
)
|
|
|
$
|
0.02
|
|
|
$
|
0.61
|
|
|
Adjustments per above
|
|
$
|
0.15
|
|
|
$
|
0.03
|
|
|
$
|
0.60
|
|
|
|
$
|
0.88
|
|
|
$
|
0.23
|
|
|
Diluted non-GAAP earnings per share
|
|
$
|
0.30
|
|
|
$
|
0.14
|
|
|
$
|
0.26
|
|
|
|
$
|
0.90
|
|
|
$
|
0.85
|
|
Semtech Corporation
Chris Rogers, Investor Relations, 805-480-2004
Copyright © 2012, Business Wire, Inc., All rights reserved. Copyright © 2012, NewsBlaze, Daily News
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