SEMTECH CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
8-K - FORM 8-K - SEMTECH CORP	c09444e8vk.htm
EX-99.1 - EXHIBIT 99.1 - SEMTECH CORP	c09444exv99w1.htm

Exhibit 99.2

SEMTECH CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Table in thousands — except per share amount)


	Three Months Ended October 31, 2010							Three Months Ended
	Originally							Aug 1,		Oct 25,
	Reported		Adjustments⁽¹⁾			Revised		2010		2009
	Q3 2011		Q3 2011			Q3 2011		Q2 2011		Q3 2010
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)		(Unaudited)

Net sales	$	123,125	$	—		$	123,125	$	113,227	$	75,147
Cost of sales		49,304		—			49,304		45,795		33,776

Gross profit		73,821		—			73,821		67,432		41,371
Operating costs and expenses:
Selling, general and administrative		25,501		10,000			35,501		24,915		18,521
Product development and engineering		18,400		—			18,400		17,404		10,467
Amortization of acquired intangible assets		2,406		—			2,406		2,405		303

Total operating costs and expenses		46,307		10,000			56,307		44,724		29,291

Operating income		27,514		(10,000	)		17,514		22,708		12,080
Interest and other income, net		3		—			3		308		1,136

Income before taxes		27,517		(10,000	)		17,517		23,016		13,216
Provision for taxes		3,916		(2,504	)		1,412		3,354		34,103

Net income	$	23,601	$	(7,496	)	$	16,105	$	19,662	$	(20,887	)


Earnings per share:
Basic	$	0.38	$	(0.12	)	$	0.26	$	0.32	$	(0.34	)
Diluted	$	0.37	$	(0.12	)	$	0.25	$	0.31	$	(0.34	)

Weighted average number of shares:
Basic		62,493					62,493		61,933		61,030
Diluted		64,555					64,555		63,552		61,030


	Nine Months Ended October 31, 2010							Nine Months Ended
	Originally							Oct 25,
	Reported		Adjustments⁽¹⁾			Revised		2009
	Q3 2011		Q3 2011			Q3 2011		Q3 2010
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)

Net sales	$	338,232	$	—		$	338,232	$	201,541
Cost of sales		139,932		—			139,932		91,286

Gross profit		198,300		—			198,300		110,255
Operating costs and expenses:
Selling, general and administrative		76,767		10,000			86,767		52,717
Product development and engineering		51,107		—			51,107		31,142
Amortization of acquired intangible assets		7,216		—			7,216		908

Total operating costs and expenses		135,090		10,000			145,090		84,767

Operating income		63,210		(10,000	)		53,210		25,488
Interest and other income, net		508		—			508		2,708

Income before taxes		63,718		(10,000	)		53,718		28,196
Provision for taxes		9,653		(2,504	)		7,149		36,719

Net income	$	54,065	$	(7,496	)	$	46,569	$	(8,523	)


Earnings per share:
Basic	$	0.87	$	(0.12	)	$	0.75	$	(0.14	)
Diluted	$	0.85	$	(0.12	)	$	0.73	$	(0.14	)

Weighted average number of shares:
Basic		61,950					61,950		60,622
Diluted		63,723					63,723		60,622


⁽¹⁾		Adjustments made to recognize subsequent event under US GAAP. Financial statements will be issued on or about December 10, 2010.

SEMTECH CORPORATION
CONSOLIDATED BALANCE SHEETS
(Table in thousands)


	October 31, 2010
	Originally							Jan 31,
	Reported		Adjustments ⁽¹⁾			Revised		2010
	(Unaudited)		(Unaudited)			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	142,209	$	—		$	142,209	$	80,598
Temporary investments		42,686		—			42,686		55,462
Receivables, less allowances		58,911		—			58,911		31,163
Inventories		43,203		—			43,203		33,819
Deferred income taxes		11,808		—			11,808		11,808
Other current assets		11,925		—			11,925		6,616

Total current assets		310,742		—			310,742		219,466

Property, plant and equipment, net		50,568		—			50,568		38,063
Long-term investments		43,810		—			43,810		26,163
Deferred income taxes		2,392		2,504			4,896		7,153
Goodwill		129,651		—			129,651		129,651
Other intangible assets, net		77,127		—			77,127		84,343
Other assets		14,865		—			14,865		9,455

Total assets	$	629,155	$	2,504		$	631,659	$	514,294


LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	36,273	$	—		$	36,273	$	23,643
Accrued liabilities		38,946		10,000			48,946		34,008
Income taxes payable		6,536		—			6,536		8,512
Deferred revenue		5,210		—			5,210		3,276
Accrued taxes		2,609		—			2,609		2,609
Deferred income taxes		1,332		—			1,332		1,332

Total current liabilities		90,906		10,000		$	100,906		73,380

Deferred income taxes — non-current		16,505		—			16,505		16,505
Accrued taxes		9,597		—			9,597		9,497
Other long-term liabilities		14,030		—			14,030		9,171

Shareholders’ equity		498,117		(7,496	)		490,621		405,741

Total liabilities & shareholders’ equity	$	629,155	$	2,504		$	631,659	$	514,294


⁽¹⁾		Adjustments made to recognize subsequent event under US GAAP. Financial statements will be issued on or about December 10, 2010.

SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION — NOTES TO CONSOLIDATED GAAP STATEMENTS OF INCOME
(Tables in thousands — except per share amounts)


	Three Months Ended October 31, 2010						Three Months Ended
	Originally						Aug 1,		Oct 25,
	Reported		Adjustments		Revised		2010		2009
Stock-based Compensation Expense	Q3 2011		Q3 2011		Q3 2011		Q2 2011		Q3 2010
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Cost of sales	$	305	$	—	$	305	$	646	$	284
Selling, general and administrative		5,206		—		5,206		4,702		2,658
Product development and engineering		1,908		—		1,908		1,858		1,160

Total stock-based compensation expense	$	7,419	$	—	$	7,419	$	7,206	$	4,102


	Nine Months Ended October 31, 2010						Nine Months Ended
	Originally						Oct 25,
	Reported		Adjustments		Revised		2009
Stock-based Compensation Expense	Q3 2011		Q3 2011		Q3 2011		Q3 2010
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Cost of sales	$	1,477	$	—	$	1,477	$	942
Selling, general and administrative		15,512		—		15,512		9,602
Product development and engineering		5,936		—		5,936		3,276

Total stock-based compensation expense	$	22,925	$	—	$	22,925	$	13,820

Three Months Ended October 31, 2010

Three Months Ended

Originally

Aug 1,

Oct 25,

Reported

Adjustments

Revised

2010

2009

Gross Profit - Reconciliation GAAP to Non-GAAP

Q3 2011

Q2 2011

Q3 2010

(Unaudited)

GAAP gross profit

73,821

—

73,821

67,432

41,371

Adjustments to GAAP gross profit:

Stock-based compensation expense

305

—

305

646

284

Fair value adjustment related to acquired inventory

—

Non-GAAP gross profit

74,126

—

74,126

68,078

41,655

Nine Months Ended October 31, 2010

Nine Months Ended

Originally

Oct 25,

Reported

Adjustments

Revised

2009

Gross Profit - Reconciliation GAAP to Non-GAAP

Q3 2011

Q3 2010

(Unaudited)

GAAP gross profit

198,300

—

198,300

110,255

Adjustments to GAAP gross profit:

Stock-based compensation expense

1,477

—

1,477

942

Fair value adjustment related to acquired inventory

2,311

—

2,311

—

Non-GAAP gross profit

202,088

—

202,088

111,197


	Three Months Ended October 31, 2010									Three Months Ended
	Originally									Aug 1,			Oct 25,
	Reported			Adjustments			Revised			2010			2009
Net Income - Reconciliation GAAP to Non-GAAP	Q3 2011			Q3 2011			Q3 2011			Q2 2011			Q3 2010
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)

GAAP net income	$	23,601		$	(7,496	)	$	16,105		$	19,662		$	(20,887	)

Adjustments to GAAP net income:
Stock-based compensation expense		7,419			—			7,419			7,206			4,102
Legal expenses related to stock option matters		613			10,000			10,613			1,065			1,078
Fair value adjustment related to acquired inventory		—			—			—			—			—
Amortization of acquired intangible assets		2,406			—			2,406			2,405			303
Restructuring costs		—						—			—			50

Total before taxes		10,438			10,000			20,438			10,676			5,533
Associated tax effect		(3,131	)		(2,985	)		(6,116	)		(3,613	)		31,597

Total of supplemental information net of taxes		7,307			7,015			14,322			7,063			37,130

Non-GAAP net income	$	30,908		$	(481	)	$	30,427		$	26,725		$	16,243


Diluted GAAP earnings per share	$	0.37		$	(0.12	)	$	0.25		$	0.31		$	(0.34	)
Adjustments per above		0.11			0.11			0.22			0.11			0.61

Diluted non-GAAP earnings per share	$	0.48		$	(0.01	)	$	0.47		$	0.42		$	0.27


	Nine Months Ended October 31, 2010									Nine Months Ended
	Originally									Oct 25,
	Reported			Adjustments			Revised			2009
Net Income - Reconciliation GAAP to Non-GAAP	Q3 2011			Q3 2011			Q3 2011			Q3 2010
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)

GAAP net income	$	54,065		$	(7,496	)	$	46,569		$	(8,523	)

Adjustments to GAAP net income:
Stock-based compensation expense		22,925			—			22,925			13,820
Legal expenses related to stock option matters		3,301			10,000			13,301			1,147
Fair value adjustment related to acquired inventory		2,311			—			2,311			—
Amortization of acquired intangible assets		7,216			—			7,216			909
Restructuring costs		—						—			398

Total before taxes		35,753			10,000			45,753			16,274
Associated tax effect		(10,138	)		(2,985	)		(13,123	)		28,757

Total of supplemental information net of taxes		25,615			7,015			32,630			45,031

Non-GAAP net income	$	79,680		$	(481	)	$	79,199		$	36,508


Diluted GAAP earnings per share	$	0.85		$	(0.12	)	$	0.73		$	(0.14	)
Adjustments per above		0.40			0.11			0.51			0.74

Diluted non-GAAP earnings per share	$	1.25		$	(0.01	)	$	1.24		$	0.60


	Three Months Ended October 31, 2010							Three Months Ended
	Originally							Aug 1,		Oct 25,
	Reported		Adjustments			Revised		2010		2009
Tax Impact Associated With Supplemental Information	Q3 2011		Q3 2011			Q3 2011		Q2 2011		Q3 2010
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)		(Unaudited)

Adjustments to GAAP net income:
Stock-based compensation expense	$	2,881	$	—		$	2,881	$	2,703	$	705
Transaction and other expenses		—		—			—		—	$	(32,801	)
Legal expenses related to stock option matters		250		2,985	⁽²⁾		3,235		263		406
Fair value adjustment related to acquired inventory		—		—			—		—		—
Amortization of acquired intangible assets		—		—			—		647		85
Restructuring costs		—		—			—		—		8

Total of associated tax effect	$	3,131	$	2,985		$	6,116	$	3,613	$	(31,597	)


	Nine Months Ended October 31, 2010							Nine Months Ended
	Originally							Oct 25,
	Reported		Adjustments			Revised		2009
Tax Impact Associated With Supplemental Information	Q3 2011		Q3 2011			Q3 2011		Q3 2010
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)

Adjustments to GAAP net income:
Stock-based compensation expense	$	6,619	$	—		$	6,619	$	3,287
Transaction and other expenses		—		—			—	$	(32,801	)
Legal expenses related to stock option matters		1,129		2,985	⁽²⁾		4,114		437
Fair value adjustment related to acquired inventory		878		—			878		—
Amortization of acquired intangible assets		1,512		—			1,512		254
Restructuring costs		—		—			—		66

Total of associated tax effect	$	10,138	$	2,985		$	13,123	$	(28,757	)


⁽²⁾		Includes adjustments related to valuation allowances resulting from changes in anticipated tax credit utilization

Attached files

Stock widget

Investing forum

SEMTECH CORP Reports