Semtech Corp. (Camarillo, CA) announced results for its fiscal year 2004 first quarter that ended April 27, 2003. Sales for the first quarter of fiscal year 2004 were $44 million and net income was $8.3 million, or $0.11 per diluted share.
Sales for the first quarter of fiscal year 2003 were $49.2 million and net income was $10 million, or $0.13 per diluted share. Gross margin was 56.5% in the first quarter of fiscal year 2004, compared to 56.2% in the prior quarter and 57.1% in the prior year first quarter. Sales for the fourth quarter of fiscal year 2003 were $44.5 million and net income was $62,000. Semtech continued to strengthen its balance sheet. Long-term debt was reduced by $59.5 million during the first quarter of fiscal year 2004. Cash and marketable securities, net of outstanding debt, increased to $248.3 million. Annualized inventory efficiencies improved to 5.2 turns of inventory per year as of the first quarter.
The company has bought back $250 million in convertible subordinated notes and common stock under its current buyback program, and has remaining $25 million authorized for additional purchases. In the first quarter of fiscal-year 2004, the company recorded a $2.8 million pre-tax gain on the repurchase of convertible subordinated notes.
