Semtech Announces Selected Fourth Quarter Results
Semtech Corp. reported selected unaudited financial results for its fourth quarter of fiscal year 2007 that ended January 28, 2007. Net sales for the fourth quarter of fiscal year 2007 were $58.0 million, down 10% from the fourth quarter of fiscal year 2006 and down 9% when compared to the third quarter of fiscal year 2007. New orders for the fourth quarter of fiscal year 2007 exceeded shipments, resulting in a positive book-to-bill ratio for the quarter.
Net sales for all of fiscal year 2007 were $252.5 million, up 5.5% when compared to all of fiscal year 2006. Semtech had $342 million of cash, cash equivalents and marketable securities as of January 28, 2007, which was up from $326 million at the end of the third quarter of fiscal year 2007.
Mohan Maheswaran, Semtech’s President and Chief Executive Officer, commented, "While we were impacted by the broad softness in the industry, we continue to see improvements in our overall execution resulting in higher quality products and stronger design win activity. Given limited visibility from our customer base, we are forecasting that sales for the first quarter of fiscal year 2008 will be flat to down 4 % as compared with the fourth quarter of fiscal year 2007."
As previously reported, the company has been engaged in an internal review of its historical stock option practices in light of an informal SEC inquiry and Federal grand jury subpoena and has concluded that accounting measurement dates for certain stock option grants differ from the measurement dates previously used for such awards. As a result, new accounting measurement dates will apply to the affected option grants and the company will restate its financial statements for fiscal years 2002 through 2006 to record a material amount of additional non-cash compensation expense. The restatement will also affect financial statements for earlier fiscal years and adjustments for those earlier years will be reflected as part of the opening balances in the financial statements for the restatement period.
Because of the pending restatement, additional results for the fourth fiscal quarter will not be available until the restated financial statements have been filed with the SEC. As previously announced, the Nasdaq Listing and Hearings Review Council ("Listing Council") has stayed delisting of the company’s securities until it has reviewed the company’s case. If the Listing Council determines it is appropriate, it may grant the company a limited period of additional time to regain compliance. The company continues to work diligently to file all required reports with the SEC as quickly as possible and thereby regain compliance with Nasdaq’s continued listing standards.
Operating expenses for the fourth quarter of fiscal year 2007 included approximately $4.1 million related to the stock options investigation, SEC inquiry, the grand jury subpoena, the previously announced derivative litigation, the restatement, and related matters. For all of fiscal year 2007, the expense related to these items was approximately $11.8 million.