Exhibit 99.1
Semtech Announces First Quarter Results
CAMARILLO, Calif.--(BUSINESS WIRE)--May 31, 2005--Semtech
Corporation (NASDAQ:SMTC), a leading producer of high performance
analog and mixed-signal semiconductors, today announced financial
results for its first quarter of fiscal year 2006 that ended May 1,
2005.
Net sales for the first quarter of fiscal year 2006 were $56.2
million, down 4 percent sequentially from the fourth quarter and down
9 percent from the prior year first quarter. Net income for the first
quarter was $10.8 million or 14 cents per diluted share, compared to
net income of $14.8 million or 19 cents per diluted share in the prior
year period. Semtech generated $13.4 million of operating cash flow
and spent $8.7 million on stock buybacks in the first quarter of
fiscal year 2006.
New orders in the first quarter of fiscal year 2006 were up 3
percent from the fourth quarter, but were less than shipments in the
period. Orders for the Company's Protection and SETS product lines
reached record levels in the first quarter. Order levels in certain
areas of power management were impacted by lower average selling
prices. New proprietary product introductions are forecasted to drive
future order growth and margin expansion. The Networking and
Industrial Power Management product line experienced record orders in
the first quarter and continued strong new product introductions. The
Company is also seeing diversity into broader end-markets, such as
high-end consumer products.
Customers continue to order and request shipments with very short
lead-times and are avoiding building buffer inventory levels.
Shipments by Semtech distributors to end-customers within Asia were at
a record level in first quarter, indicating a continued decline in
channel inventories. As the end-markets improve, demand should reflect
the lower inventories and improving market conditions.
The Company introduced 23 new products in the first quarter of
fiscal year 2006. Nine of the new products were in the area of
Portable Power Management and 8 were out of the Protection Products
group. The rate of new product introductions is up dramatically over
the prior year period, due in part to improved product definition and
design processes implemented last year.
Second Quarter Outlook
Semtech estimates that net sales for the second quarter that ends
July 31, 2005 will be approximately flat with the first quarter that
ended May 1, 2005. Turns orders (orders received and shipped in the
same quarter) of approximately 48 percent are required to achieve this
forecast. Earnings in the second quarter are forecasted to be 14 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
cellular phones, personal computers and automated test equipment,
demand for semiconductor devices in general, demand for the Company's
products in particular, competitors' actions, supply from key
third-party silicon wafer foundries and assembly contractors,
manufacturing costs and yields, relations with strategic customers,
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
(Table in thousands - except per share amounts)
Three Months Ended
May 1, April 25,
2005 2004
(Unaudited) (Unaudited)
Net sales $56,174 $61,893
Cost of sales 24,502 25,111
Gross profit 31,672 36,782
Operating costs and expenses:
Selling, general and administrative 11,108 10,341
Product development and engineering 8,633 7,907
Total operating costs and expenses 19,741 18,248
Operating income 11,931 18,534
Interest and other income (expense), net 1,935 894
Income before taxes 13,866 19,428
Provision for taxes 3,018 4,663
Net income $10,848 $14,765
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Earnings per share:
Basic $0.15 $0.20
Diluted $0.14 $0.19
Weighted average number of shares:
Basic 73,845 74,226
Diluted 76,708 78,819
Notes regarding Consolidated Statements of Income:
1.) In the three month period ended May 1, 2005, $18,000 of previously
written-off inventory was sold. In the three month period ended April
25, 2004, $297,000 of previously written-off inventory was sold.
SEMTECH CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
May 1, January
2005 30, 2005
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $80,961 $82,154
Temporary investments 126,458 108,167
Receivables, less allowances 23,714 22,098
Inventories 25,293 24,734
Deferred income taxes 7,264 7,255
Other current assets 6,749 6,026
Total current assets 270,439 250,434
Property, plant and equipment, net 58,565 55,674
Investments, maturities in excess of 1 year 96,001 111,577
Deferred income taxes 25,421 26,916
Other assets 10,843 13,324
Total Assets $461,269 $457,925
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $11,776 $9,504
Accrued liabilities 7,638 11,697
Income taxes payable 3,606 3,495
Deferred revenue 2,547 2,879
Deferred income taxes 1,466 1,443
Total current liabilities 27,033 29,018
Deferred income taxes 2,143 2,131
Other long-term liabilities 2,894 2,410
Total Stockholders' equity 429,199 424,366
Total Liabilities and Stockholders' Equity $461,269 $457,925
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CONTACT: Semtech Corporation
Investor Relations
John Baumann, 805-480-2010