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Semtech Announces Third Quarter of Fiscal Year 2015 ResultsCAMARILLO, Calif. --(Business Wire)-- Semtech Corporation (Nasdaq: SMTC), a leading supplier of analog and mixed-signal semiconductors, today reported unaudited financial results for its third quarter of fiscal year 2015, which ended October 26, 2014. The Company also announced that its Board of Directors approved an increase of the existing stock repurchase authorization to $50.0 million. Prior to the increase, the Company had $21.6 million remaining from the authorization that was expanded in August 2013. Net sales for the third quarter of fiscal year 2015 were $148.9 million, up 2 percent from the second quarter of fiscal year 2015 and up 6 percent from the third quarter of fiscal year 2014. Gross profit margin, computed in accordance with U.S. generally accepted accounting principles ("GAAP"), for the third quarter of fiscal year 2015 was 60.0 percent compared to 60.5 percent in the second quarter of fiscal year 2015 and 59.1 percent in the third quarter of fiscal year 2014. GAAP net income for the third quarter of fiscal year 2015 was $17.6 million or $0.26 per diluted share. This compares to GAAP net income of $17.9 million or $0.26 per diluted share in the second quarter of fiscal year 2015 and GAAP net income of $12.5 million or $0.18 per diluted share in the third quarter of fiscal year 2014. To facilitate the complete understanding of comparable financial performance between periods, the Company also presents performance results net of certain non-cash and one-time items or other expenses which would not otherwise have been incurred by the Company in the normal course of its business operations or are not reflective of the Company's core results over time. The Company's non-GAAP results exclude the following items:
Excluding the items listed above, non-GAAP net income for the third quarter of fiscal year 2015 was $30.8 million or $0.46 per diluted share. Non-GAAP net income was $28.3 million or $0.42 per diluted share in the second quarter of fiscal year 2015 and was $24.1 million or $0.35 per diluted share in the third quarter of fiscal year 2014. Non-GAAP gross profit margin for the third quarter of fiscal year 2015 was 60.3 percent. Non-GAAP gross profit margin for the second quarter of fiscal year 2015 was 60.8 percent and 59.4 percent in the third quarter of fiscal year 2014. As of October 26, 2014, the Company had $233.0 million in cash, cash equivalents and marketable securities. This compares to $246.9 million in cash, cash equivalents and marketable securities at the end of fiscal year 2014. Mohan Maheswaran, Semtech's President and Chief Executive Officer, stated "We were pleased to deliver solid earnings and operating leverage despite a challenging demand environment and weak bookings. Strength in the high-end consumer and industrial end-markets offset weakness from other markets." Maheswaran added, "We are encouraged by the number of new opportunities we are seeing from emerging markets and the quality of the design-win momentum we are seeing with several of our newer platforms which should contribute strongly to the Company's growth prospects in FY16." The results announced today are preliminary, as they are subject to the Company finalizing its closing procedures and customary quarterly review by the Company's independent registered public accounting firm. As such, these results are subject to revision until the Company will have filed its Quarterly Report on Form 10-Q for the third quarter of fiscal year 2015. Fourth Quarter of Fiscal Year 2015 Outlook
Non-GAAP Financial Measures To supplement the Company's consolidated financial statements prepared in accordance with GAAP, this release includes a non-GAAP presentation of gross profit margin, net income and earnings per diluted share and free cash flow. To provide additional insight into the Company's fourth quarter outlook, this release includes a presentation of forward-looking non-GAAP measures including gross profit margin, tax rate and earnings per diluted share. The non-GAAP gross profit margin, net income and earnings per diluted share measures exclude stock-based compensation expense, amortization of acquired intangible assets and the other items detailed above. The non-GAAP presentation of free cash flow excludes capital expenditures. These non-GAAP measures are provided to enhance the user's overall understanding of the Company's comparable financial performance between periods. In addition, the Company's management generally excludes the items noted above when managing and evaluating the performance of the business. The financial statements provided with this release include reconciliations of these non-GAAP measures to their most comparable GAAP results for the second quarter of fiscal year 2015 and third quarter of fiscal year 2014 and a reconciliation of forward-looking earnings per diluted share to its most comparable GAAP measure for the fourth quarter of fiscal year 2015. These additional non-GAAP financial measures should not be considered substitutes for any measures derived in accordance with GAAP and may be inconsistent with similar measures presented by other companies. Forward-Looking and Cautionary Statements This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on our current expectations, estimates and projections about our operations, industry, financial condition, performance, results of operations, and liquidity. Forward-looking statements are statements other than historical information or statements of current condition and relate to matters such as future financial performance, future operational performance, the anticipated impact of specific items on future earnings, and our plans, objectives and expectations. Statements containing words such as "may," "believes," "anticipates," "expects," "intends," "plans," "projects," "estimates," "should," "will," "designed to," "projections," or "business outlook," or other similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and events to differ materially from those projected. Potential factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: potential differences between the unaudited results disclosed in this release and the Company's final results for the quarter when disclosed in its Quarterly Report on Form 10-Q as a result of the completion of the Company's financial closing procedures, final adjustments, review by the Company's independent registered public accounting firm and other developments arising between now and the disclosure of the final results; the continuation and/or pace of key trends considered to be main contributors to the Company's growth, such as demand for increased network bandwidth, demand for increasing energy efficiency in the Company's products or end-use applications of the products, and demand for increasing miniaturization of electronic components; shifts in demand among target customers, and other comparable changes or protracted weakness in projected or anticipated markets; competitive changes in the marketplace, including, but not limited to the pace of growth or adoption rates of applicable products or technologies; shifts in focus among target customers, and other comparable changes in projected or anticipated end-user markets; adequate supply of components and materials from our suppliers, and of our products from our third-party manufacturers, to include disruptions due to natural causes or disasters, weather, or other extraordinary events; the Company's ability to forecast and achieve anticipated revenues and earnings estimates in light of periodic economic uncertainty, to include impacts arising from European, Asian and global economic dynamics; the Company's ability to manage expenses to achieve anticipated amounts; and the amount and timing of expenditures for capital equipment deemed necessary or advisable by the Company. Additionally, forward-looking statements should be considered in conjunction with the cautionary statements contained in the "Risk Factors" section and elsewhere in the Company's Annual Report on Form 10-K for the fiscal year ended 2014, including, without limitation, information under the captions "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors", in the Company's other filings with the Securities and Exchange Commission, and in material incorporated therein by reference. In light of the significant risks and uncertainties inherent in the forward-looking information included herein that may cause actual performance and results to differ materially from those predicted, any such forward-looking information should not be regarded as representations or guarantees by the Company of future performance or results, or that its objectives or plans will be achieved or that any of its operating expectations or financial forecasts will be realized. Reported results should not be considered an indication of future performance. Investors are cautioned not to place undue reliance on any forward-looking information contained herein, which reflect management's analysis only as of the date hereof. Except as required by law, the Company assumes no obligation to publicly release the results of any update or revision to any forward-looking statements that may be made to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated or future events, or otherwise. About Semtech Semtech Corporation is a leading supplier of analog and mixed-signal semiconductors for high-end consumer, computing, communications and industrial equipment. Products are designed to benefit the engineering community as well as the global community. The Company is dedicated to reducing the impact it, and its products, have on the environment. Internal green programs seek to reduce waste through material and manufacturing control, use of green technology and designing for resource reduction. Publicly traded since 1967, Semtech is listed on the NASDAQ Global Select Market under the symbol SMTC. For more information, visit http://www.semtech.com. ======================================================================= Semtech and the Semtech logo are registered marks of Semtech Corporation.
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