Semtech Corp. reported unaudited financial results for its third quarter of fiscal year 2008 that ended October 28, 2007. Net sales for the third quarter of fiscal year 2008 were $78.6 million, up 23.3% from the third quarter of fiscal year 2007 and up 17.2% when compared to the second quarter of fiscal year 2008.
Net income for the third quarter of fiscal year 2008, computed in accordance with U.S. generally accepted accounting principles (GAAP), was $16.0 million or 24 cents per diluted share. GAAP net income was $6.3 million or 9 cents per diluted share in the third quarter of fiscal year 2007 and was $9.0 million or 13 cents per diluted share in the second quarter of fiscal year 2008. Gross profit margin for the third quarter of fiscal year 2008 was 54.6% compared to 54.2% in the third quarter of fiscal year 2007 and 55.2% in the second quarter of fiscal year 2008.
Non-GAAP net income for the third quarter of fiscal year 2008 was $19.4 million or 29 cents per diluted share. Non-GAAP net income was $14.1 million or 19 cents per diluted share in the third quarter of fiscal year 2007 and was $12.5 million or 18 cents per diluted share in the second quarter of fiscal year 2008. Non-GAAP gross profit margin for the third quarter of fiscal year 2008 was 55.0%. Non-GAAP gross profit margin for the third quarter of fiscal year 2007 was 54.7 and 55.4% in the second quarter of fiscal year 2008.
Non-GAAP results exclude the impact of stock based compensation, the amortization of acquisition-related intangibles, expenses associated with a now settled litigation against an insurer, the gain on sale of an unused parcel of land, and expenses related to the company’s now completed investigation into its historical stock option practices, and now completed restatement of past financial statements. Non-GAAP results also exclude the impact of ongoing stock option related matters including an inquiry by the SEC, a federal grand jury subpoena, and derivative and class action litigation.
New orders exceeded shipments, resulting in a book-to-bill ratio above one. Demand was strongest in the areas of computing, industrial and handheld equipment.
Operating expenses for the third quarter of fiscal year 2008 included approximately $0.8 million related to the SEC inquiry, the grand jury subpoena, the derivative and class action litigation, and other matters related to historical stock option practices. In the second quarter of fiscal year 2008 these expenses were $0.9 million.
Semtech had $265.8 million of cash, cash equivalents and marketable securities as of October 28, 2007, which was up from $234.4 million at the end of the second quarter of fiscal year 2008.
