Key Developments For Semtech Corporation
Semtech Corporation (SMTC.O) (Nasdaq)
Semtech Corp. Issues Q4 2010 Outlook; Revenue Outlook Above Analysts' Estimates
Semtech Corp. announced that for the fourth quarter of 2010, it expects net sales to be flat to up 4% on a sequential basis and GAAP earnings to be $0.15 to $0.17 per diluted share. This outlook excludes any financial results associated with the pending Sierra Monolithics acquisition. The Company reported revenue of $75.1 million in the third quarter of 2010. According to Reuters Estimates, analysts on an average were expecting the Company to report earnings per share (EPS) of $0.16 on revenue of $74 million for the fourth quarter of 2010.
Semtech Corp. Announces Definitive Agreement to Acquire Sierra Monolithics, Inc.
Semtech Corp. announced that it has entered into a definitive agreement to acquire Sierra Monolithics, Inc. for $180 million in cash. Headquartered in Irvine, California with design centers in Irvine and Redondo Beach, California, Sierra Monolithics provides analog ICs and solutions for a wide array of communications systems and applications. Under terms of the agreement and plan of merger, Semtech will pay the stockholders of Sierra Monolithics $180 million in cash at the closing. In addition, at the closing, Semtech will also assume the existing unvested options of Sierra Monolithics` employees valued at approximately $8 million and at closing will grant to employees additional equity incentives up to $12 million in value. $18 million of the cash consideration will be placed into escrow for twelve months in order to meet any indemnifiable claims pursuant to the terms of the definitive agreement. The transaction will be funded with Semtech`s existing cash reserves. In association with repatriating cash domiciled overseas to fund the transaction, Semtech expects to incur a one-time tax liability of approximately $33 million in the third quarter of 2010. Morgan Stanley & Co. Incorporated provided exclusive financial advisory services to Semtech and Paul, Hastings, Janofsky & Walker LLP served as legal counsel for Semtech. Jefferies & Company, Inc. served as financial advisor to Sierra Monolithics and Morrison & Foerster LLP served as legal counsel for Sierra Monolithics.
Semtech Corp. Issues Q3 2010 Outlook In-Line with Analysts' Estimates
Semtech Corp. announced that for the third quarter of 2010, it expects net sales increase 6% to 10% on a sequential basis. GAAP earnings are expected to be $0.12 to $0.14 per diluted share. The Company reported net revenues of $66.3 million for the second quarter of fiscal year 2010. According to Reuters Estimates, analysts on an average are expecting the Company to report revenue of $67.8 million and GAAP earnings per share (EPS) of $0.12 for the third quarter of 2010.
Semtech Corp. Adds Low-Power 300MHz-510MHz Transceiver and Receiver To ISM Band RF Platform
Semtech Corp. announced the SX1212 UHF transceiver and SX1213 UHF receiver, two new devices in the Company's RF solutions platform that boast the industry's lowest receive current consumption.
Semtech Corp. Adds 6A, 28V Regulators To Synchronous Buck Regulator Platform
Semtech Corp. announced that SC414 and SC424, two of the industry's smallest 6A, 28V point of load voltage regulators, capable of efficiencies up to 96%. The new devices, which are packaged in a 4mm x 4mm QFN package, expand the Company's platform of high current point of load voltage regulators first introduced with the SC417 and SC427 10A synchronous buck regulators. Power density for the SC414 and SC424 is achieved through advanced packaging, optimized power circuit layout and matching of driver to internal power switches.
