Semtech Reports First-Quarter Net Income Increase

May 23, 2002 by Jeff Shepard

Semtech Corp. (Camarillo, CA) announced results for its fiscal year 2003 first quarter that ended April 28, 2002. Sales for the first quarter of fiscal year 2003 were $49.2 million, an increase of six percent, compared to sales of $46.4 million for the fourth quarter of fiscal year 2002.

Gross margin was 57 percent in the quarter, up 100 basis points from the prior quarter. Net income for the first quarter of fiscal-year 2003 increased sequentially by 14 percent to $10.0 million, or $0.13 per diluted share. First-quarter results represent the third consecutive quarter of sequential improvement in net sales and a return to a 20 percent or better net-after-tax profit margin.

Sales for the first quarter of fiscal-year 2003 were down 19 percent, compared to the first quarter of fiscal-year 2002. Net income was down 28 percent in comparison to the same period last year, before one-time charges for head-count reductions and location consolidations in the prior-year's first quarter.

Chairman and CEO Jack Poe said, "The first quarter was a continuation of the improvement in market conditions experienced during the second half of last year. The company's growth, which recently has been driven by increases in content and market share gains in computers, graphics, gaming and cellular phones, has been bolstered by evidence that some of the capital equipment markets are beginning to improve. We expect the market for test equipment to improve ahead of communications equipment."