Exhibit 99.1
Semtech Fourth Quarter Sales up 15 Percent Sequentially
CAMARILLO, Calif.--(BUSINESS WIRE)--Feb. 24, 2004--Semtech
Corporation (Nasdaq: SMTC):
-- Earnings Per Share of 16 Cents Exceeds Prior Forecast
-- 7 to 10 Percent Sequential Sales Growth Forecasted for the
First Quarter
Semtech Corporation (Nasdaq: SMTC), a leading producer of high
performance analog and mixed-signal semiconductors, today announced
that net sales for its fourth quarter of fiscal year 2004 increased 15
percent compared to the third quarter. Gross margin, operating income
and earnings per share for the quarter all improved ahead of the
Company's previous forecast.
Net sales for the fourth quarter that ended January 25, 2004 were
$55.4 million, up 24 percent from $44.5 million in the prior year
fourth quarter. Net income for the fourth quarter of fiscal year 2004
was $12.5 million or 16 cents per diluted share. Gross margin was 58.6
percent in the fourth quarter of fiscal year 2004.
Net sales for all of fiscal year 2004 were $192.1 million and net
income was $32.5 million or 42 cents per diluted share. In fiscal year
2003, net sales were $193.0 million and net income was $34.2 million
or 44 cents per diluted share. Interest and other income/expense for
both years include gains related to the Company's repurchase of
convertible subordinated debentures. Fiscal year 2004 includes the
expense of calling the remaining outstanding convertible subordinated
debentures.
New orders in the fourth quarter of fiscal year 2004 increased 11
percent compared to the prior quarter. This follows a 23 percent
increase in orders in the third quarter over the second quarter. For
the full year, new orders were up 19 percent over the prior year.
The strength in both shipments and orders during the fourth
quarter of fiscal year 2004 was driven by Power Management products
used in cellular phones, Test and Measurement products sold to
automated test equipment (ATE) customers, and Protection products for
networking and broadband applications. For all of fiscal year 2004,
sales of Portable Power Management products increased 81 percent
compared to the prior fiscal year.
Jason Carlson, Semtech's President and Chief Executive Officer
commented, "The 15 percent sequential sales growth in the fourth
quarter and outlook for healthy growth in the coming quarter speak for
themselves. Semtech's strong position in feature-rich cell phones is
being complemented by diversification into other high-end consumer
applications, like HDTV, set-top-boxes and digital still cameras.
Demand out of the capital goods markets, principally ATE and
enterprise-level communications equipment, has also benefited the
results."
New product development and design win data suggests continued
strength in cellular phones, notebook computers, communications
equipment and other portable devices in the coming year.
Semtech ended fiscal year 2004 free of long-term debt and with
$275.5 million of cash and investments, having added $15.2 million in
the fourth quarter. The Company spent $3.0 million on the repurchase
of common stock in the last three months of the year. For the year,
$79.4 million was used to buy back common stock and convertible
subordinated debentures.
First Quarter Outlook
Semtech estimates that net sales for the first quarter of fiscal
year 2005 will be up 7 to 10 percent over the fourth quarter. Turns
orders (orders received and shipped in the same quarter) of
approximately 32 percent are required to achieve this forecast. Gross
margin and operating income should improve. Earnings in the first
quarter are forecasted to be 17 or 18 cents per diluted share.
About Semtech
Semtech Corporation is a leading supplier of analog and
mixed-signal semiconductors used in a wide range of computer,
industrial and communication applications.
Safe Harbor Provision
Statements contained in this release that are not historical facts
are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements,
including projections and forecasts for revenue and gross margin,
involve risks and uncertainties that could cause actual results to
differ materially from those projected. These risks and uncertainties
include worldwide economic and political conditions, the timing and
duration of semiconductor market upturns or downturns, demand for
personal computers, cellular phones and automated test equipment,
demand for semiconductor devices in general, competitors' actions,
relations with strategic customers, supply from key third-party
silicon wafer foundries and assembly contractors, manufacturing costs
and yields, demand for the Company's products in particular, and risks
associated with the businesses of major customers. Other factors that
may cause actual results to differ from the forward-looking statements
contained in this press release and that may affect the Company's
prospects in general are described in the Company's filings with the
Securities and Exchange Commission. The Company undertakes no
obligation to update or revise forward-looking statements to reflect
subsequent events or changed assumptions or circumstances.
SEMTECH CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands - except per share amounts)
Three Months Ended Twelve Months Ended
January 25, January 26, January 25, January 26,
2004 2003 2004 2003
Net sales $55,381 $44,531 $192,079 $192,958
Cost of sales 22,903 19,514 81,332 83,097
Gross profit 32,478 25,017 110,747 109,861
Operating costs and expenses:
Selling, general and
administrative 9,762 8,408 37,207 34,426
Product development and
engineering 7,536 7,627 30,371 31,336
One-time costs - 12,000 - 13,202
Total operating costs and
expenses 17,298 28,035 67,578 78,964
Operating income
(loss) 15,180 (3,018) 43,169 30,897
Interest and other (expense)
income, net 1,305 1,819 (451) 15,187
Income (loss) before
taxes 16,485 (1,199) 42,718 46,084
Provision (benefit)
for taxes 3,956 (1,261) 10,252 11,903
Net income $12,529 $62 $32,466 $34,181
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Earnings per share:
Basic $0.17 $0.00 $0.44 $0.47
Diluted $0.16 $0.00 $0.42 $0.44
Weighted average number of shares:
Basic 73,941 73,056 73,570 73,013
Diluted 78,736 76,243 77,504 77,789
Notes regarding Consolidated Statements of Income:
1.) In the twelve month period ended January 25, 2004, $1.4 million
of previously written-off inventory was sold. In the twelve month
period ended January 26, 2003, $1.3 million of previously written-off
inventory was sold.
2.) "Interest and other (expense) income, net" includes a $6.8 million
charge for the calling of the Company's convertible subordinated notes
in the twelve month period ended January 25, 2004.
3.) "Interest and other (expense) income, net" includes a gain on
the repurchase of convertible subordinated notes of $2.9 million in
the twelve month period ended January 25, 2004 and a gain of $12.7
million in the twelve month period ended January 26, 2003.
SEMTECH CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
January 25, January 26,
2004 2003
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $96,314 $137,041
Temporary investments 93,044 273,382
Receivables, less allowances 20,362 17,676
Inventories 22,166 16,351
Income taxes refundable 5,796 -
Deferred income taxes 5,212 11,731
Other current assets 3,062 2,267
Total current assets 245,956 458,448
Property, plant and equipment, net 49,578 51,547
Investments, maturities in excess
of 1 year 86,119 78,624
Deferred income taxes 25,552 27,143
Other assets 1,268 4,784
Total Assets $408,473 $620,546
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $8,554 $5,725
Accrued liabilities 16,894 26,596
Income taxes payable 1,699 3,593
Deferred revenue 1,689 1,583
Other current liabilities 27 39
Total current liabilities 28,863 37,536
Long-term debt - 241,570
Total Stockholders' equity 379,610 341,440
Total Liabilities and Stockholders'
Equity $408,473 $620,546
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CONTACT: Semtech Corporation
John Baumann, 805-480-2010