Fiscal year 2017 was an exciting year for Semtech, as we returned to growth. Net sales totaled $544.3 million, an increase of 11.0% over the prior fiscal year driven by growth in all four of our Product Groups. Our Signal Integrity and Wireless and Sensing Products Groups achieved double-digit and record annual net sales, while our Protection and Power and High-Reliability Products Groups grew 8.0% and 7.0%, respectively.
Our gross margin of 59.7% remained at the upper end of our targeted range while our careful management of operating expenses enabled the Company to deliver earnings growth that far exceeded our net sales growth. We also divested or de-emphasized R&D investments in areas where a timely return was not expected or we believed that our competitive advantage would not sustain a leadership position. Semtech delivers innovative technology platforms leveraging three major industry trends that we believe drive some of the fastest and most exciting growth opportunities for the semiconductor industry.
Higher Bandwidth and Connectivity
We believe Semtech’s highly differentiated and disruptive analog and mixed-signal platforms position us to gain share in our target markets in fiscal year 2018 and beyond. I expect Semtech to continue to outperform the analog semiconductor industry and potentially deliver record financial results as we continue on our journey to becoming a $1 billion revenue company.
Mohan Maheswaran
President and Chief Executive Officer