Semtech Announces Record Net Sales and Net Income for First Quarter; First Quarter Net Sales Up 74 Percent Year-Over-Year; First Quarter Net Income Up 154 Percent Year-Over-Year.Business Editors NEWBURY Newbury, town (1991 pop. 31,488), West Berkshire, S central England. In a farming region, Newbury trades in wool, malt, and farm products. Paper, furniture, and metal products are also made. In the Middle Ages the town was an important textile manufacturing center. PARK, Calif.--(BUSINESS WIRE)--May 22, 2000 Semtech
Semtech Corporation (NASDAQ: SMTC) is a supplier of analog and mixed-signal semiconductors. Corp. (Nasdaq:SMTC SMTC Southern Maine Technical College SMTC Science/Mathematics/Technology Center (Central Michigan University) SMTC Saluda Mountain Telephone Company (Knoxville, Tennessee) SMTC Short-To-Medium Term Control ) today reported record net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight , gross margin and net income for the first quarter ended April 30, 2000. Net sales for the first quarter of fiscal year 2001 were $57.4 million, an increase of 74 percent over net sales of $33.0 million reported in the first quarter of the prior year. Net income for the first three months of fiscal year 2001 was $12.1 million or $0.32 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, an increase of 154 percent over comparable prior-year net income of $4.8 million, or $0.14 per diluted share. Sequentially, net sales for the first quarter of fiscal year 2001 increased 4 percent and net income grew 15 percent over the previous quarter, prior to one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. acquisition costs. Gross margin reached 54.3 percent of net sales in the first three months of fiscal year 2001, an increase of 50 basis points from the fourth quarter of fiscal year 2000. The company expects gross margin to continue to expand due to increased sales of high-margin new products. Jack Poe (Power Over Ethernet) Transmitting DC power to the target device at the end of an Ethernet cable by carrying power in the unused 4/5 and 7/8 wires. It enables access points and other remote devices to be installed where there is no AC power outlet. See POE adapter. , chairman and chief executive officer, commented: "In addition to our record financial performance, we introduced a record 29 new product families during the first quarter. Our offering of analog and mixed-signal products for portable systems is now among the best in the industry. For the communications infrastructure market, we have begun to sample several complex, proprietary system clock management and fiber optic products. Initial feedback from our customers on these products has been outstanding. The introduction of our new high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. clock and logic products offers additional growth opportunities in the communications, workstation and automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. test equipment markets." Poe added: "Our protection products continued to see strong demand in the first quarter, with particular strength in broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). applications. High-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" products for the automated test equipment market also contributed to our growth in the first quarter. Based on current conditions, we foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. these trends continuing for the balance of the year, with a forecasted acceleration in demand for our power management, advanced communications and system management product lines during the second half of the year." More than 300 new design wins were recorded in the first three months of fiscal year 2001. Semtech hired 16 new engineers in the first quarter, including four design engineers. During the quarter, the company announced the opening of its newest design center, located in Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas. The Austin design center will focus on developing advanced mixed-signal circuits, providing Semtech another opportunity to recruit engineering resources from a technology-rich region. About Semtech Semtech is a leading provider of high-quality analog and mixed-signal circuits for complex power management, transient A malfunction that occurs at random intervals and lasts for a short duration such as a spike or surge in a power line or a memory cell that intermittently fails. See spike and power surge. transient - 1. protection, high-speed data conversion, intelligent input/output (architecture) Intelligent Input/Output - /i:-too-oh/ (I2O) A specification which aims to provide an I/O device driver architecture that is independent of both the specific device being controlled and the host operating system. and communications solutions. Publicly traded since 1967, Semtech is listed on the Nasdaq National Market under the symbol SMTC. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provision Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and projections in this news release involve risk and uncertainty. Important factors include worldwide economic conditions; the timing and duration of the semiconductor market upturn; demand for personal computers, cellular phones and automated test equipment; demand for the company's products in particular; demand for semiconductor devices in general; competitors' actions; relations with large strategic customers and suppliers; risks associated with the businesses of major customers and other risk factors. Refer to the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Jan. 30, 2000, as filed with the Securities and Exchange Commission for further information. Actual results could differ materially from expected events as discussed in this news release.
SEMTECH CORP.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands - except per-share amounts)
Three Months Ended
April 30, May 2,
2000 1999
(Unaudited) (Unaudited)
Net sales $ 57,412 $ 33,044
Cost of sales 26,220 16,445
Gross profit 31,192 16,599
Operating costs and expenses --
Selling, general and administrative 8,220 5,642
Product development and engineering 7,045 4,117
Total operating costs and expenses 15,265 9,759
Operating income 15,927 6,840
Interest and other income, net 1,329 254
Income before taxes 17,256 7,094
Provision for taxes 5,177 2,341
Net income $ 12,079 $ 4,753
Earnings per share:
Basic $ 0.37 $ 0.16
Diluted $ 0.32 $ 0.14
Weighted average number of shares:
Basic 32,341 30,058
Diluted 37,382 33,102
-0-
SEMTECH CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands)
April 30, Jan. 30,
2000 2000
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $238,470 $45,225
Temporary investments 171,352 18,066
Receivables, less allowances 30,968 25,223
Income taxes refundable 478 --
Inventories 29,898 26,581
Other current assets 1,891 1,223
Deferred income taxes 8,361 4,106
Total current assets 481,418 120,424
Property, plant and equipment, net 24,785 24,397
Long-term investments 55,156 --
Other assets 12,584 1,482
Deferred income taxes 3,114 3,047
TOTAL ASSETS $ 577,057 $ 149,350
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $11,213 $10,723
Accrued liabilities 11,829 8,869
Income taxes payable -- 1,389
Other current liabilities 785 2,756
Total current liabilities 23,827 23,737
Long-term debt 400,000 --
Other long-term liabilities 168 131
Total shareholders' equity 153,062 125,482
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 577,057 $ 149,350
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