Semtech (SMTC) 8-K Semtech Enters Agreement in Principle to Settle Class Action Securities Litigation

Exhibit 99.2

SEMTECH CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Table in thousands — except per share amount)

	Three Months Ended October 31, 2010							Three Months Ended
	Originally							Aug 1,		Oct 25,
	Reported		Adjustments(1)			Revised		2010		2009
	Q3 2011		Q3 2011			Q3 2011		Q2 2011		Q3 2010
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)		(Unaudited)
Net sales	$	123,125	$	—		$	123,125	$	113,227	$	75,147
Cost of sales		49,304		—			49,304		45,795		33,776
Gross profit		73,821		—			73,821		67,432		41,371
Operating costs and expenses:
Selling, general and administrative		25,501		10,000			35,501		24,915		18,521
Product development and engineering		18,400		—			18,400		17,404		10,467
Amortization of acquired intangible assets		2,406		—			2,406		2,405		303
Total operating costs and expenses		46,307		10,000			56,307		44,724		29,291
Operating income		27,514		(10,000	)		17,514		22,708		12,080
Interest and other income, net		3		—			3		308		1,136
Income before taxes		27,517		(10,000	)		17,517		23,016		13,216
Provision for taxes		3,916		(2,504	)		1,412		3,354		34,103
Net income	$	23,601	$	(7,496	)	$	16,105	$	19,662	$	(20,887	)
Earnings per share:
Basic	$	0.38	$	(0.12	)	$	0.26	$	0.32	$	(0.34	)
Diluted	$	0.37	$	(0.12	)	$	0.25	$	0.31	$	(0.34	)
Weighted average number of shares:
Basic		62,493					62,493		61,933		61,030
Diluted		64,555					64,555		63,552		61,030

	Nine Months Ended October 31, 2010							Nine Months Ended
	Originally							Oct 25,
	Reported		Adjustments(1)			Revised		2009
	Q3 2011		Q3 2011			Q3 2011		Q3 2010
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)
Net sales	$	338,232	$	—		$	338,232	$	201,541
Cost of sales		139,932		—			139,932		91,286
Gross profit		198,300		—			198,300		110,255
Operating costs and expenses:
Selling, general and administrative		76,767		10,000			86,767		52,717
Product development and engineering		51,107		—			51,107		31,142
Amortization of acquired intangible assets		7,216		—			7,216		908
Total operating costs and expenses		135,090		10,000			145,090		84,767
Operating income		63,210		(10,000	)		53,210		25,488
Interest and other income, net		508		—			508		2,708
Income before taxes		63,718		(10,000	)		53,718		28,196
Provision for taxes		9,653		(2,504	)		7,149		36,719
Net income	$	54,065	$	(7,496	)	$	46,569	$	(8,523	)
Earnings per share:
Basic	$	0.87	$	(0.12	)	$	0.75	$	(0.14	)
Diluted	$	0.85	$	(0.12	)	$	0.73	$	(0.14	)
Weighted average number of shares:
Basic		61,950					61,950		60,622
Diluted		63,723					63,723		60,622

⁽¹⁾ Adjustments made to recognize subsequent event under US GAAP. Financial statements will be issued on or about December 10, 2010.

SEMTECH CORPORATION
CONSOLIDATED BALANCE SHEETS
(Table in thousands)

	October 31, 2010
	Originally							Jan 31,
	Reported		Adjustments(1)			Revised		2010
	(Unaudited)		(Unaudited)			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	142,209	$	—		$	142,209	$	80,598
Temporary investments		42,686		—			42,686		55,462
Receivables, less allowances		58,911		—			58,911		31,163
Inventories		43,203		—			43,203		33,819
Deferred income taxes		11,808		—			11,808		11,808
Other current assets		11,925		—			11,925		6,616
Total current assets		310,742		—			310,742		219,466
Property, plant and equipment, net		50,568		—			50,568		38,063
Long-term investments		43,810		—			43,810		26,163
Deferred income taxes		2,392		2,504			4,896		7,153
Goodwill		129,651		—			129,651		129,651
Other intangible assets, net		77,127		—			77,127		84,343
Other assets		14,865		—			14,865		9,455
Total assets	$	629,155	$	2,504		$	631,659	$	514,294
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	36,273	$	—		$	36,273	$	23,643
Accrued liabilities		38,946		10,000			48,946		34,008
Income taxes payable		6,536		—			6,536		8,512
Deferred revenue		5,210		—			5,210		3,276
Accrued taxes		2,609		—			2,609		2,609
Deferred income taxes		1,332		—			1,332		1,332
Total current liabilities		90,906		10,000		$	100,906		73,380
Deferred income taxes — non-current		16,505		—			16,505		16,505
Accrued taxes		9,597		—			9,597		9,497
Other long-term liabilities		14,030		—			14,030		9,171
Shareholders’ equity		498,117		(7,496	)		490,621		405,741
Total liabilities & shareholders’ equity	$	629,155	$	2,504		$	631,659	$	514,294

⁽¹⁾ Adjustments made to recognize subsequent event under US GAAP. Financial statements will be issued on or about December 10, 2010.

SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION — NOTES TO CONSOLIDATED GAAP STATEMENTS OF INCOME
(Tables in thousands — except per share amounts)

	Three Months Ended October 31, 2010						Three Months Ended
	Originally						Aug 1,		Oct 25,
	Reported		Adjustments		Revised		2010		2009
Stock-based Compensation Expense	Q3 2011		Q3 2011		Q3 2011		Q2 2011		Q3 2010
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Cost of sales	$	305	$	—	$	305	$	646	$	284
Selling, general and administrative		5,206		—		5,206		4,702		2,658
Product development and engineering		1,908		—		1,908		1,858		1,160
Total stock-based compensation expense	$	7,419	$	—	$	7,419	$	7,206	$	4,102

	Nine Months Ended October 31, 2010						Nine Months Ended
	Originally						Oct 25,
	Reported		Adjustments		Revised		2009
Stock-based Compensation Expense	Q3 2011		Q3 2011		Q3 2011		Q3 2010
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Cost of sales	$	1,477	$	—	$	1,477	$	942
Selling, general and administrative		15,512		—		15,512		9,602
Product development and engineering		5,936		—		5,936		3,276
Total stock-based compensation expense	$	22,925	$	—	$	22,925	$	13,820

	Three Months Ended October 31, 2010						Three Months Ended
	Originally						Aug 1,		Oct 25,
	Reported		Adjustments		Revised		2010		2009
Gross Profit - Reconciliation GAAP to Non-GAAP	Q3 2011		Q3 2011		Q3 2011		Q2 2011		Q3 2010
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
GAAP gross profit	$	73,821	$	—	$	73,821	$	67,432	$	41,371
Adjustments to GAAP gross profit:
Stock-based compensation expense		305		—		305		646		284
Fair value adjustment related to acquired inventory		—		—		—		—		—
Non-GAAP gross profit	$	74,126	$	—	$	74,126	$	68,078	$	41,655

	Nine Months Ended October 31, 2010						Nine Months Ended
	Originally						Oct 25,
	Reported		Adjustments		Revised		2009
Gross Profit - Reconciliation GAAP to Non-GAAP	Q3 2011		Q3 2011		Q3 2011		Q3 2010
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
GAAP gross profit	$	198,300	$	—	$	198,300	$	110,255
Adjustments to GAAP gross profit:
Stock-based compensation expense		1,477		—		1,477		942
Fair value adjustment related to acquired inventory		2,311		—		2,311		—
Non-GAAP gross profit	$	202,088	$	—	$	202,088	$	111,197

	Three Months Ended October 31, 2010									Three Months Ended
	Originally									Aug 1,			Oct 25,
	Reported			Adjustments			Revised			2010			2009
Net Income - Reconciliation GAAP to Non-GAAP	Q3 2011			Q3 2011			Q3 2011			Q2 2011			Q3 2010
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
GAAP net income	$	23,601		$	(7,496	)	$	16,105		$	19,662		$	(20,887	)
Adjustments to GAAP net income:
Stock-based compensation expense		7,419			—			7,419			7,206			4,102
Legal expenses related to stock option matters		613			10,000			10,613			1,065			1,078
Fair value adjustment related to acquired inventory		—			—			—			—			—
Amortization of acquired intangible assets		2,406			—			2,406			2,405			303
Restructuring costs		—						—			—			50
Total before taxes		10,438			10,000			20,438			10,676			5,533
Associated tax effect		(3,131	)		(2,985	)		(6,116	)		(3,613	)		31,597
Total of supplemental information net of taxes		7,307			7,015			14,322			7,063			37,130
Non-GAAP net income	$	30,908		$	(481	)	$	30,427		$	26,725		$	16,243
Diluted GAAP earnings per share	$	0.37		$	(0.12	)	$	0.25		$	0.31		$	(0.34	)
Adjustments per above		0.11			0.11			0.22			0.11			0.61
Diluted non-GAAP earnings per share	$	0.48		$	(0.01	)	$	0.47		$	0.42		$	0.27

	Nine Months Ended October 31, 2010									Nine Months Ended
	Originally									Oct 25,
	Reported			Adjustments			Revised			2009
Net Income - Reconciliation GAAP to Non-GAAP	Q3 2011			Q3 2011			Q3 2011			Q3 2010
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
GAAP net income	$	54,065		$	(7,496	)	$	46,569		$	(8,523	)
Adjustments to GAAP net income:
Stock-based compensation expense		22,925			—			22,925			13,820
Legal expenses related to stock option matters		3,301			10,000			13,301			1,147
Fair value adjustment related to acquired inventory		2,311			—			2,311			—
Amortization of acquired intangible assets		7,216			—			7,216			909
Restructuring costs		—						—			398
Total before taxes		35,753			10,000			45,753			16,274
Associated tax effect		(10,138	)		(2,985	)		(13,123	)		28,757
Total of supplemental information net of taxes		25,615			7,015			32,630			45,031
Non-GAAP net income	$	79,680		$	(481	)	$	79,199		$	36,508
Diluted GAAP earnings per share	$	0.85		$	(0.12	)	$	0.73		$	(0.14	)
Adjustments per above		0.40			0.11			0.51			0.74
Diluted non-GAAP earnings per share	$	1.25		$	(0.01	)	$	1.24		$	0.60

	Three Months Ended October 31, 2010							Three Months Ended
	Originally							Aug 1,		Oct 25,
	Reported		Adjustments			Revised		2010		2009
Tax Impact Associated With Supplemental Information	Q3 2011		Q3 2011			Q3 2011		Q2 2011		Q3 2010
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)		(Unaudited)
Adjustments to GAAP net income:
Stock-based compensation expense	$	2,881	$	—		$	2,881	$	2,703	$	705
Transaction and other expenses		—		—			—		—	$	(32,801	)
Legal expenses related to stock option matters		250		2,985	(2)		3,235		263		406
Fair value adjustment related to acquired inventory		—		—			—		—		—
Amortization of acquired intangible assets		—		—			—		647		85
Restructuring costs		—		—			—		—		8
Total of associated tax effect	$	3,131	$	2,985		$	6,116	$	3,613	$	(31,597	)

	Nine Months Ended October 31, 2010							Nine Months Ended
	Originally							Oct 25,
	Reported		Adjustments			Revised		2009
Tax Impact Associated With Supplemental Information	Q3 2011		Q3 2011			Q3 2011		Q3 2010
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)
Adjustments to GAAP net income:
Stock-based compensation expense	$	6,619	$	—		$	6,619	$	3,287
Transaction and other expenses		—		—			—	$	(32,801	)
Legal expenses related to stock option matters		1,129		2,985	(2)		4,114		437
Fair value adjustment related to acquired inventory		878		—			878		—
Amortization of acquired intangible assets		1,512		—			1,512		254
Restructuring costs		—		—			—		66
Total of associated tax effect	$	10,138	$	2,985		$	13,123	$	(28,757	)

⁽²⁾ Includes adjustments related to valuation allowances resulting from changes in anticipated tax credit utilization