Semtech Corporation F1Q09 (Qtr End 04/27/08) Earnings Call Transcript

Semtech Corporation (SMTC)

F1Q09 Earnings Call

May 21, 2008 5:00 pm ET

Executives

Todd German – Director of FP&A and Investor Relations

Mohan R. Maheswaran – President, Chief Executive Officer, Director

Emeka Chukwu – Chief Financial Officer, Vice President

Analysts

Shawn Webster – J.P. Morgan

Steven Smigie – Raymond James

Craig Ellis – Citigroup

Harsh Kumar – Morgan, Keegan & Company, Inc.

Sumit Dhanda – Banc of America Securities

Bob Gujavarty – Deutsche Bank Securities

Doug Freedman – American Technology Research

Jeff Rosenberg – William Blair & Company, L.L.C.

Presentation

Operator

Welcome to the Q1FY09 Semtech Corporation earnings release conference call (Operator Instructions) Mr. German you may begin your conference.

Todd German

Welcome to Semtech Corporation’s fiscal year 2009 first quarter conference call. I’m Todd German Director of FP&A and Investor

Relations and we have just released unaudited results for our first quarter that ended April 27, 2008.

For the next 45 minutes or so Mohan Maheswaran, Semtech’s President and Chief Executive Officer, and Emeka Chukwu, our Chief Financial Officer, will be discussing those results and answering your questions.

Before I turn the call over to Emeka, I want to remind everyone of the following important information. This call is open to all interested parties in accordance with Reg FD. Any questions about our performance, operations, plans or our estimates of future financial results will be considered now. We are unable to say if there will be another Reg FD plan opportunity for you to ask questions before the next quarterly conference call.

Semtech reports results based on generally accepted accounting principles, commonly referred to as GAAP. The results announced today are preliminary, as the quarterly review by the company’s independent registered public accounting firm is still under way. As such, these results are subject to revision until the review is completed and the company files its quarterly report on Form 10-Q.


This quarter we have also made reference to certain non-GAAP measures. These non-GAAP items are provided to enhance your overall understanding of our comparable financial performance between periods. In addition, management generally excludes certain items in managing and evaluating the performance of the business.

This conference call will include forward-looking statements. 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.

Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. Some of these risks are discussed in our most recent filings with the SEC on Form 10-K and 10-Q.

Although a replay of this call will be available on the Investor Relations section of our website, we assume no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

For those interested in learning more about Semtech, CFO Emeka Chukwu will be presenting the Oppenheimer Annual Technology Conference in Boston on June 4.


Thank you for your attention on this important preliminary information and I will now turn the call over to Emeka Chukwu, Semtech’s Chief Financial Officer.

Emeka Chukwu

Revenues for the fourth quarter of fiscal 2009 were $74.4 million, a 23% increase from the same quarter last year and down 5% sequentially. The increase in year-over-year revenue was driven by strength in sales of our protection products, our power discrete products, and our power management products. As expected, revenues were down sequentially due to seasonal weakness and demand for our computing and non-handheld customer products.

During the first quarter 60% of our revenues were derived from customers in Asia, 25% came from North America and 15% from Europe. For the fourth quarter revenues from OEM sales represented approximately 43% of total revenues, wide distribution represented approximately 57% of total revenues.

All this ramp-up sequentially in Q1 resulted in a book-to-bill above one. We saw strength in our consumer and communications and markets driven by demand for our protection products. All those for our industrial and military products remained very strong. In [inaudible] seasonality, we saw a pressure decline in auto’s for our computing products. Net those autos accounted for 41% of shipments during the quarter.

Our GAAP net income for the quarter was $8.1 million or $0.15 per diluted share, up from $7.9 million or $0.11 per share for the same quarter last year, and down from net income of $14.9 million or $0.23 per share for the fourth quarter of 2008. We expect a GAAP net income of $0.16 to $0.18 per diluted share in the second quarter of fiscal 2009….for more details visit http://seekingalpha.com/