Semtech’s Growth Strategy Helps Firm to Record Sales

Semtech Corp. in Newbury Park reported record sales of $30.9 million for the fourth quarter of fiscal 1999, an increase of 8% over revenue of $28.5 million for both the third quarter of fiscal 1999 and the fourth quarter of fiscal 1998.

Net sales for the year were $114.5 million, compared with $102.8 million for fiscal 1998.

Net income for the three months ended Jan. 31 was $4.1 million or 25 cents per diluted share, an increase of 20% above third quarter earnings of $3.4 million, or 22 cents per diluted share. However, income fell 10% compared to a year earlier, when the figure was $4.5 million.

Semtech said it adopted a growth strategy last year, resulting in the hiring of 52 experienced engineers and the introduction of 43 new product lines.

“Our tremendous investment in design throughout fiscal 1999, which was a challenging year for the semiconductor industry, has started to pay significant dividends by accelerating our rate of new product introductions,” said Jack Poe, Semtech chairman and chief executive. “This flow of new products has allowed us to penetrate the top original equipment manufacturer customers in all of our key markets, increase revenues and expand gross margins. We are very optimistic about our business potential for fiscal 2000.”

Semtech is a supplier of semiconductors used in cell phones and communication, computer, test and measurement, video and industrial equipment.