was a very exciting year for Semtech as the Company delivered a strong operating performance that included several new financial records. Net sales of $627.2 million grew 7% over the prior year and represented a new record, driven by growth from all three of our Product Groups. Our Signal Integrity and our Wireless and Sensing Products Groups achieved record annual net sales, while our Protection Products Group grew annual net sales for a third consecutive year. We also achieved a record number of new design wins, and generated a record $183.6 million in operating cash flow.
This strong operating performance was driven by our innovative growth engines targeted at the Internet of Things (IoT), Data Center and Mobile markets which are all benefitting from three industry mega-trends:
IoT is expected to deliver intelligence and efficiency on an unparalleled scale through the use of advanced analytics by quickly and inexpensively connecting billions of “things” to the Cloud. Semtech’s revolutionary LoRa® devices and wireless radio frequency technology (LoRa Technology) continued its march toward establishing itself as the de facto platform in Low Power Wide Area Networks (LPWAN). Some of the major milestones achieved to date include:
The ongoing demand for higher bandwidth and connectivity solutions remained a key driver behind the growth and record annual net sales results achieved by our Signal Integrity Products Group in fiscal year 2019.
Demand for these higher speed links by Cloud and Hyperscale data centers is expected to continue and Semtech’s ClearEdge® and recently introduced Tri-Edge CDR platforms, along with our FiberEdge™ PMD platforms, position the Company to benefit from this secular growth driver.
Semtech continued to deliver innovative protection and proximity sensing platforms used in smartphones, tablets and wearable devices that are used to protect customers’ products as well as protect users from the radio emissions of increasingly more powerful radio waves.
We believe our unrelenting focus on developing innovative solutions, our diverse customer base, our balanced end-market exposure, and balanced product portfolio position Semtech very well strategically to deliver future net sales and earnings growth.
President and Chief Executive Officer
|BALANCE SHEET DATA (in thousands)||FY2015**||FY2016||FY2017||FY2018||FY2019|
|Cash and cash equivalents||$230,328||$211,810||$297,134||$307,923||$312,120|
|Long-term debt, less current portion||$234,746||$239,177||$226,524||$211,114||$192,845|
|Other long-term liabilities||$35,286||$40,402||$56,780||$83,441||$57,441|
|Total stockholders' equity||$551,358||$528,051||$605,263||$665,013||$682,681|
** 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.
President and Chief Executive Officer
Executive Vice President, General Counsel and Secretary
Executive Vice President and General Manager, Signal Integrity Products Group
Senior Vice President, Corporate Marketing and Business Development
Executive Vice President and
Chief Financial Officer
Vice President and General Manager, Protection Products Group
Senior Vice President, Human Resources
Vice President and General Manager, Wireless and Sensing Products Group
Executive Vice President, Worldwide Sales
Executive Vice President, Worldwide Operations and Information Technology
Chief Technology Officer and Vice President of Architecture, Wireless and Sensing Products Group
Executive Vice President and Chief Quality Officer
Chairman of the Board, Nominating and Governance Committee Chair, Semtech Corporation; Chairman of the Board, The Kavli Foundation; lnvestor
Vice Chairman, Semtech Corporation; CEO, Endural, LLC and its predecessors
SVP Sales, Magic Leap; Former President of SAP’s Global Partner Operations; Executive positions, Hewlett-Packard, Vesper and Nextel
Compensation Committee Chair, Semtech Corporation; CEO, Palagon Partners, LLC; Director, Lantronix, lnc.; Former Chairman and Director, Emulex Corporation
CEO and Director, Teridion; Former SVP and GM, Hewlett-Packard; Executive positions, 3Com, Tropos Networks and Cisco Systems; Director, SpaceIQ and Xilinx, Inc.
Strategic Advisor, Diversis Capital, LLC; Advisory Board Member, a couple of private companies; Former COO, Huawei Enterprise USA, Inc.; Director, ServicePower and Knowles Corporation
Audit Committee Chair, Semtech Corporation; Former COO and CFO of Kilopass Technology, lnc.; Former CFO of eSilicon Corporation
President and Chief Executive Officer, Semtech Corporation
Independent Business Consultant; Former Board Member, two private companies; Former President and CEO, Attensity Inc.; Former CEO and Chairman, Platinum Software Corp and Silicon Systems Inc.
Board Member, Aristocrat Leisure Limited; Former CEO, President and Director, Trident Microsystems, Inc.
462 South 4th Street, Ste. 1600
Louisville, KY 40202
Shareholder Inquiries: 877-868-8019
Foreign Shareowners: 781-575-2879
Nasdaq, Ticker Symbol: SMTC
200 Flynn Road, Camarillo, CA 93012
This document may contain certain forwardlooking 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 forwardlooking statements, whether as a result of new information, future events or otherwise.
Semtech, the Semtech logo, ClearEdge, LoRa and LoRaWAN are registered trademarks or service marks, and FiberEdge, LoRa Cloud and the LoRa Alliance are trademarks or service marks, of Semtech Corporation.