Fiscal year 2018 represented another exciting year for Semtech. Net sales increased 8% over the prior fiscal year and totaled $587.8 million. Our Wireless and Sensing and Signal Integrity Products Groups both delivered record annual net sales while our Protection Products Group achieved its second consecutive year of strong annual growth, which contributed to fiscal year 2018’s strong operating performance.
Semtech continues to focus on delivering innovative Analog and Algorithm platforms to several of the most attractive market segments in the semiconductor industry. Our focus remains:
The Internet of Things (IoT) is expected to revolutionize industrial communications by connecting billions of “things” and delivering unparalleled efficiencies and intelligence using the Cloud. IoT has opened a huge opportunity for low power connected sensors.
Semtech’s LoRa® Technology is benefiting from its broadening acceptance for low power wide area network (LPWAN) connectivity. Several key milestones achieved during fiscal year 2018 included:
The emergence of Cloud and hyperscale data centers is driving a tremendous increase in the demand for high bandwidth connectivity.
The world we live in continues to demand more mobility driving the need for smaller, faster, feature-rich, and more efficient mobile device platforms.
We exited fiscal year 2018 with solid momentum and visibility, led by a record number of annual design wins and a strong portfolio of high-performance analog and mixed signal platforms. Our customer diversity, end-market balance, geographical distribution, and focus on high-growth, attractive markets should enable the Company to deliver even more remarkable financial results in fiscal year 2019.
President and Chief Executive Officer
|BALANCE SHEET DATA (in thousands)||FY 2014*||FY 2015**||FY 2016||FY 2017||FY 2018|
|Cash, cash equivalents and investments||$246,868||$230,328||$211,810||$297,134||$307,923|
|Long-term debt, less current portion||$273,293||$234,746||$239,177||$226,524||$211,114|
|Other long-term liabilities||$28,914||$35,286||$40,402||$56,780||$83,441|
|Total stockholders' equity||$535,843||$551,358||$528,051||$605,263||$665,013|
*FY2014 EPS impacted by restructuring and impairment related charges of $181.5M from the strategic decision to reduce the level of investment made in the optical long-haul market.
** FY2015 EPS impacted by restructuring and impairment related charges of $25.1M from the strategic decision to conclude investment in defense and microwave communications infrastructure markets.
The number of proof-of-concepts or POCs using Semtech’s LoRa® Technology underway throughout the world at the end of fiscal year 2018
LoRa®-based end-nodes deployed worldwide used in both private and public networks
LoRa®-based gateways deployed worldwide at the end of fiscal year 2018, and expected to reach 200,000 by the end of fiscal year 2019
M2M connections will grow to 27 billion globally in 2025
*Source: Machina Research
In the coming years, the Internet of Things (IoT) technology phenomenon is expected to equip billions of everyday objects with connectivity and intelligence for improved analytics, performance, efficiency, and lifestyle. In fiscal year 2018, Semtech’s LoRa Technology delivered a record net sales performance.
Semtech high-speed optical transceiver ICs are trusted globally by optical networking solution providers for data centers
Semtech Optical ICs shipped worldwide
Technology companies continue to break ground on data centers throughout the world to support the ever-increasing demand for higher bandwidth needed by Cloud computing, social networking, multimedia streaming, and mobile usage.
Semtech’s comprehensive platform of optical ICs provide superior signal integrity support for the data center markets which remain one of the more exciting and high-growth segments.
Our highly differentiated portfolio of single and multi-channel products including the ClearEdge® Clock and Data Recovery (CDR) and FiberEdge™ Physical Media Devices (PMDs), as well as integrated variants, provide extraordinary solutions for data center and enterprise networking, Passive Optical Network (PON) or Fiber to the X (FTTX), and wireless infrastructure markets.
Z-Pak™-based solution for transient voltage suppression (TVS) protection in portable and consumer electronics
Protection and Sensing devices shipped annually for the smartphones and mobility markets
With each successive generation of IC development and the associated smaller process geometries, Semtech’s high-performance protection solutions enable customers to more easily achieve smaller form factors, greater energy-efficiency and portability to meet the demands for today’s leading mobile devices where users demand ever-increasing mobility from their mobile applications.
Semtech’s electrostatic discharge (ESD) protection products, LinkCharge® wireless charging platform and smart sensing solutions support the demands for robust, compact and high-performance capabilities. Many of the leading mobile device manufacturers rely on Semtech’s high-performance protection platforms to protect their smartphones and other mobile device applications.
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NASDAQ, Ticker Symbol: SMTC
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This document may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company’s financial position and long-term projections and strategy. These forward-looking statements are based on current information and expectations, and are subject to risks and uncertainties discussed in our filings with the Securities and Exchange Commission. The Company’s actual results may differ materially from expected results. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
Semtech, the Semtech logo, ClearEdge, LinkCharge, and LoRa are registered trademarks or service marks, and Z-Pak, LoRaWAN, FiberEdge and the LoRa Alliance are trademarks or service marks, of Semtech Corporation or its affiliates.