Beyond
Remarkable

Annual Report2018

Annual Report 2018

CEO LETTER

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:

INTERNET OF THINGS


DATA CENTERS


MOBILITY

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.

Mohan Maheswaran
President and Chief Executive Officer

Annual Report 2018

FINANCIALS

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
Working capital $282,706 $288,647 $237,334 $315,453 $335,024
Total assets $948,940 $929,431 $911,517 $1,011,542 $1,085,776
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.

INTERNET OF THINGS

1000

The number of proof-of-concepts or POCs using Semtech’s LoRa® Technology underway throughout the world at the end of fiscal year 2018

50 MILLION

LoRa®-based end-nodes deployed worldwide used in both private and public networks

70,000+

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

27 BILLION*

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.

DATA CENTERS

MARKET LEADER

Semtech high-speed optical transceiver ICs are trusted globally by optical networking solution providers for data centers

1 BILLION+

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.

MOBILITY

10s OF BILLIONS UNITS SHIPPED

Z-Pak™-based solution for transient voltage suppression (TVS) protection in portable and consumer electronics

2 BILLION+

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.

Annual Report 2018

CORPORATE INFO

SENIOR Leadership Team

  • Mohan Maheswaran
  • Charles Ammann
  • Gary Beauchamp
  • Simon Brown
  • Chris Chang
  • Emeka Chukwu
  • Mark Costello
  • Sharon Faltemier
  • James Kim
  • Marc Pegulu
  • Asaf Silberstein
  • Michael Wilson

Board Members

  • Rockell N. Hankin
  • Glen M. Antle
  • James P. Burra
  • Bruce C. Edwards
  • Ye Jane Li
  • James T. Lindstrom
  • Mohan Maheswaran
  • Carmelo J. Santoro
  • Sylvia Summers

TRANSFER AGENT

Computershare
462 South 4th Street, Ste. 1600
Louisville, KY 40202
Shareholder Inquiries: 877-868-8019
Foreign Shareowners: 781.575.2879
www.computershare.com/investor

EXCHANGE

NASDAQ, Ticker Symbol: SMTC

CORPORATE HEADQUARTERS

200 Flynn Road, Camarillo, CA 93012
Telephone: 805-498-2111

SEMTECH WEBSITE

www.semtech.com

INVESTOR RELATIONS

Telephone: 805-480-2004
Email: webir@semtech.com

FORWARD LOOKING STATEMENTS

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.

Annual Report 2018

PROXY MATERIAL