Semtech
Annual Report 2018

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Plain-text annual report

S E M T E C H C O R P O R A T I O N | 2 0 1 8 A N N U A L R E P O R T Beyond Remarkable ANNUAL REPORT 2018 FINANCIALS ANNUAL REVENUE (in millions) EPS OPERATING CASH FLOW (in millions) $595 $558 $490 $544 $588 $-2.44 $0.41 $0.17 $0.83 $0.54 $118 $106 $102 $118 $111 FY2014* FY2015** FY2016 FY2017 FY2018 FY2014* FY2015** FY2016 FY2017 FY2018 FY2014* FY2015** FY2016 FY2017 FY2018 BALANCE SHEET DATA (in thousands) Cash, cash equivalents and investments Working capital Total assets Long-term debt, less current portion Other long-term liabilities Total stockholders’ equity FY2014* FY2015** FY2016 FY2017 FY2018 $ $ $ $ $ $ 246,868 282,706 948,940 273,293 28,914 535,843 $ $ $ $ $ $ 230,328 288,647 929,431 234,746 35,286 551,358 $ $ $ $ $ $ 211,810 237,334 $ $ 297,134 315,453 $ $ 307,923 335,024 911,517 $ 1,011,542 $ 1,085,776 239,177 40,402 528,051 $ $ $ 226,524 56,780 605,263 $ $ $ 211,114 83,441 665,013 * 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. Semtech Corporation 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 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: • LoRa Alliance™ membership expanded to include over 500 companies globally • More than 50 countries either announced or completed LoRaWAN™ network deployments • Gateways deployed exceeded 70,000 worldwide, and able to support more than 350 million nodes • Cumulative LoRa®-based nodes deployed equaled more than 50 million worldwide CEO LETTER DATA CENTERS The emergence of Cloud and hyperscale data centers is driving a tremendous increase in the demand for high bandwidth connectivity. • Semtech’s ClearEdge® CDR and FiberEdge™ PMD platforms have enjoyed strong acceptance and contributed to record CDR and PMD net sales in fiscal year 2018 MOBILITY The world we live in continues to demand more mobility driving the need for smaller, faster, feature-rich, and more efficient mobile device platforms. • Semtech’s Z-Pak™ platform delivers industry leading ESD and Surge Protection at the smallest form factors available • Semtech’s Proximity Sensing platforms deliver the uniquely differentiated sensing required to enable the effective management of powerful radio emissions in tablets, smartphones and wearables 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 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. Semtech Corporation 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. Annual Report 2018 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. 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Forward-looking statements are statements other than historical information or statements of current condition and relate to matters such as future financial performance, future operational performance, the anticipated impact of specific items on future earnings, and our plans, objectives and expectations. Statements containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "estimate," "should," "will," "designed to," "projections," or "business outlook," or other similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and events to differ materially from those projected. Potential factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: fluctuation in the Company's future results; downturns in the business cycle; decreased average selling prices of the Company's products; reduced demand for the Company's products due to global economic conditions; changes in U.S. and global social, political, regulatory and economic conditions or in laws and policies governing foreign trade, manufacturing, development and investment, including potential increases on tariffs of goods imported into the U.S.; business interruptions; the Company's reliance on a limited number of suppliers and subcontractors for component and materials; potentially insufficient liability insurance if the Company's products are found to be defective; obsolete inventories as a result of changes in demand and change in life cycles for the Company’s products; the Company may be unsuccessful in developing and selling new products; the Company’s products having to undergo a lengthy and expensive qualification process without any assurance of product sales; the Company's products failing to meet industry standards; the Company's inability to protect intellectual property rights; the Company suffering losses if its products infringe the intellectual property rights of others; the Company's need to commit resources to product production prior to receipt of purchase commitments; increased business risk from foreign customers; the Company's foreign currency exposures; potential increased tax liabilities and effective tax rate if the Company needs to repatriate funds held by foreign subsidiaries; export restrictions and laws affecting the Company's trade and investments; competition against larger, more established entities; increased competition due to industry consolidation; the loss of any one of the Company's significant customers; volatility of customer demand; termination of a contract by a distributor; the Company’s inability to effectively control the sales of its products on the gray market; the Company’s failure to maintain effective internal control over financial reporting or disclosure controls and procedures; government regulations and other standards that impose operational and reporting requirements; the Company's failure to comply with applicable environmental regulations; compliance with conflict minerals regulations; increase in the Company’s cost of doing business as a result of having to comply with the codes of conduct of certain of the Company’s customers and suppliers; volatility of the Company’s effective tax rate; changes in tax laws and review by taxing authorities; taxation of the Company in other jurisdictions; the Company’s limited experience with government contracting; potential government investigations and inquiries; loss of the Company's key personnel; risks associated with companies the Company has acquired in the past and may acquire in the future and the Company's ability to successfully integrate acquired businesses and benefit from expected synergies; the Company may be required to recognize additional impairment charges; losses in the value of investments in entities we do not control; the receipt of inaccurate, incomplete, or untimely financial information from entities in which we have an interest for which we are required to consolidate; the Company may be adversely affected by new accounting pronouncements; the Company's ability to generate cash to service its debt obligations; restrictive covenants in the Company's credit agreement which may restrict its ability to pursue its business strategies; the Company's reliance on certain critical information systems for the operation of its business; costs J associated with the Company's indemnification of certain customers, distributors and other parties; the Company's common stock price could be subject to extreme price fluctuations; the impact on the Company’s common stock price if securities or industry analysts do not publish reports about the Company’s business or adversely change their recommendations regarding the Company’s common stock; anti-takeover provisions in the Company’s organizational documents could make an acquisition of the Company more difficult; the Company is subject to litigation risks which may be costly to defend. Additionally, forward-looking statements should be considered in conjunction with the cautionary statements contained in this Annual Report on Form 10-K, including, without limitation, information under the captions "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" and additional factors that accompany the related forward-looking statements in this Annual Report on Form 10-K, in the Company's other filings with the Securities and Exchange Commission ("SEC"), and in material incorporated herein and therein by reference. In light of the significant risks and uncertainties inherent in the forward-looking information included herein that may cause actual performance and results to differ materially from those predicted, any such forward-looking information should not be regarded as representations or guarantees by the Company of future performance or results, or that its objectives or plans will be achieved, or that any of its operating expectations or financial forecasts will be realized. Reported results should not be considered an indication of future performance. Investors are cautioned not to place undue reliance on any forward-looking information contained herein, which reflect management's analysis only as of the date hereof. Except as required by law, the Company assumes no obligation to publicly release the results of any update or revision to any forward-looking statement that may be made to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated or future events, or otherwise. In addition to regarding forward-looking statements with caution, you should consider that the preparation of the consolidated financial statements requires us to draw conclusions and make interpretations, judgments, assumptions and estimates with respect to certain factual, legal, and accounting matters. Our consolidated financial statements might have been materially impacted if we had reached different conclusions or made different interpretations, judgments, assumptions or estimates. I 9#75 T T&L- DZ VL,L(eE "%’H,L’’ 7W t,W t MWtYQ2S SM1stM +)//MQW, 1U RQSR /W,U1,4t2ZW t2tM1Si 4QqWYh+QS2tM +W4QZ12Y)Z*1,+ t2Y tY(t2ZWY tMS1,Q*R4+ t2Y rW,W Q2Z1,/1,t*WY Q2 xWMtrt,W Q2 LDGeg 7W YW+QS2i YW(WM1/i 4t2)UtZ*),W t2Y 4t,NW* t rQYW ,t2SW 1U /,1Y)Z*+ U1, Z144W,ZQtM t//MQZt*Q12+i *RW 4tP1,Q*p 1U rRQZR t,W +1MY Q2*1 *RW W2*W,/,Q+W Z14/)*Q2Si Z144)2QZt*Q12+i RQSRhW2Y Z12+)4W, t2Y Q2Y)+*,QtM W2Yh4t,NW*+g Enterprise ComputingC Yt*tZW2*W,+i /t++Q(W 1/*QZtM 2W*r1,N+i YW+N*1/+i 21*Ws11N+i +W,(W,+i 412Q*1,+i /,Q2*W,+ t2Y 1*RW, Z14/)*W, /W,Q/RW,tM+g CommunicationsC st+W +*t*Q12+i 1/*QZtM 2W*r1,N+i Zt,,QW, 2W*r1,N+i +rQ*ZRW+ t2Y ,1)*W,+i ZtsMW 41YW4+i rQ,WMW++ ]#[ t2Y 1*RW, Z144)2QZt*Q12 Q2U,t+*,)Z*),W W.)Q/4W2*g High-End ConsumerC Rt2YRWMY /,1Y)Z*+i +4t,*/R12W+i rQ,WMW++ ZRt,SQ2Si +W*h*1/ s1qW+i YQSQ*tM *WMW(Q+Q12+i 412Q*1,+ t2Y YQ+/Mtp+i *tsMW*+i rWt,tsMW+i YQSQ*tM (QYW1 ,WZ1,YW,+ t2Y 1*RW, Z12+)4W, W.)Q/4W2*g IndustrialC t2tM1S t2Y YQSQ*tM (QYW1 s,1tYZt+* W.)Q/4W2*i (QYW1h1(W,h‘A +1M)*Q12+i t)*14t*WY 4W*W, ,WtYQ2Si ‘2*W,2W* 1U *t*W+ t2Y QS2tM ‘2*WS,Q*pi A,1*WZ*Q12i 7Q,WMW++ t2Y >W2+Q2S t2Y A1rW, t2Y aQSRh?WMQtsQMQ*pg B2 _)Mp Li KeLFi *RW !14/t2p tZ.)Q,WY #/*19Q+Q12 W4*WZRo+ Q2Y)+*,p MWtYQ2S RQSRh+/WWY +QS2tM Q2*WS,Q*p t2Y ZRQ/ YW(WM1/4W2* Wq/W,*Q+W Q+ Wq/WZ*WY *1 W2tsMW *RW tY1/*Q12 1U >1U*rt,W xWUQ2WY 9QYW1 1(W, d*RW,2W* m8>x91d8l tZZWMW,t*Q2S *RQ+ 2t*),tM /,1S,W++Q12 Q2 *RW W(1M)*Q12 1U (QYW1 *,t2+/1,*g QS2tM ‘2*WS,Q*p /1,*U1MQ1g B2 \t,ZR Ii KeLHi rW Z14/MW*WY *RW tZ.)Q+Q*Q12 1U <,Q)2W >p+*W4+i ]g]g!g m8<,Q)2W8li t /,Q(t*WMphRWMY +)//MQW, 1U rQ,WMW++ ZRt,SQ2Si Q+1Mt*WY +rQ*ZRQ2S t2Y /1rW, 4t2tSW4W2* /Mt*U1,4+ *t,SW*WY t* RQSR t2Y M1r /1rW,i RQSR WUUQZQW2Zp t//MQZt*Q12+g B[d8lg <9> YW(QZW+ /,1(QYW /,1*WZ*Q12 U1, WMWZ*,12QZ +p+*W4+ rRW,W (1M*tSW +/QNW+ mZtMMWY *,t2+QW2*+li +)ZR t+ WMWZ*,1+*t*QZ YQ+ZRt,SW m8d>x8li WMWZ*,QZtM 1(W, +*,W++ m8dB>8l 1, +WZ12Yt,p MQSR*2Q2S +),SW W2W,Spi Zt2 /W,4t2W2*Mp Yt4tSW +W2+Q*Q(W +W4QZ12Y)Z*1, ‘!+g B), /1,*U1MQ1 1U /,1*WZ*Q12 +1M)*Q12+ Q2ZM)YW UQM*W, t2Y *W,4Q2t*Q12 YW(QZW+ *Rt* t,W Q2*WS,t*WY rQ*R *RW <9> YW(QZWg B), /,1Y)Z*+ /,1(QYW ,1s)+* /,1*WZ*Q12 rRQMW /,W+W,(Q2S +QS2tM Q2*WS,Q*p Q2 RQSRh+/WWY Z144)2QZt*Q12+i 2W*r1,NQ2S t2Y (QYW1 Q2*W,UtZW+g p+*W4+ ‘221(t*Q12 b,1)/ rRQZR Z14sQ2WY *RW t2tM1Sf4QqWY +QS2tM YW+QS2 Z14/W*W2ZQW+ U,14 1), /,W(Q1)+ >QW,,t \121MQ*RQZ+i ‘2Zg m8>\‘8l t2Y bW22)4 !1,/1,t*Q12 m8bW22)48l tZ.)Q+Q*Q12+ t2Y rt+ ZRt,*W,WY rQ*R YW(WM1/Q2S Q221(t*Q(W t2tM1Sf4QqWY +QS2tM Q2*WMMWZ*)tM /,1/W,*p mT‘A=l U1, W4W,SQ2S +p+*W4+g B2 #)S)+* Hi KeLGi rW Z14/MW*WY *RW YQ(W+*Q*),W 1U 1), >21rs)+R ‘A s)+Q2W++ m*RW ,W4tQ2Q2S /t,* 1U 1), >p+*W4+ ‘221(t*Q12 b,1)/l *1 ?t4s)+ ‘2Zg m8?t4s)+8l U1, 5JKge 4QMMQ12 Q2 Zt+R tM12S rQ*R *RW 1//1,*)2Q*p *1 ,WZWQ(W tYYQ*Q12tM /tp4W2*+ U,14 ?t4s)+ *R,1)SR KeKK st+WY )/12 t /W,ZW2*tSW 1U +tMW+ sp ?t4s)+ 1U 2Wr /,1Y)Z*+ Wq/WZ*WY *1 sW YW(WM1/WY sp ?t4s)+ U,14 *RW YQ+/1+WY t++W*+g ‘2 UQ+ZtM pWt, KeLFi rW ,WZ1,YWY t StQ2 1U 5KHgH 4QMMQ12 12 *RW YQ+/1+Q*Q12 1U *RQ+ s)+Q2W++g B*RW, *Rt2 *RQ+ StQ2i *RW YQ(W+*Q*),W YQY 21* t2Y Q+ 21* Wq/WZ*WY *1 Rt(W t 4t*W,QtM Q4/tZ* 12 1), Z12+1MQYt*WY UQ2t2ZQtM +*t*W4W2*+g c1MM1rQ2S *RW YQ(W+*Q*),Wi sWSQ22Q2S Q2 *RW *RQ,Y .)t,*W, 1U UQ+ZtM pWt, KeLFi rW 21 M12SW, Rt(W t >p+*W4+ ‘221(t*Q12 b,1)/g B), +tMW+ sp /,1Y)Z* MQ2W t,W t+ U1MM1r+C mQ2 *R1)+t2Y+l >QS2tM ‘2*WS,Q*p A,1*WZ*Q12 7Q,WMW++ t2Y >W2+Q2S A1rW, t2Y aQSRh?WMQtsQMQ*p >p+*W4+ ‘221(t*Q12 B*RW,C 7t,,t2* >Rt,W+ mLl <1*tM KeLE KGJieLH 5 LFGiIEK LLFiHDG IGiDFJ V mLGiKLDl HEFiEIF 5 5 5 cQ+ZtM wWt,+ KeLF KHEiEKI 5 LIDiEGH ELiGHF HDiLLF KeH mHiJDGl HIIiKFK 5 KeLG KKLiLEH LJEiGFI FeiFLK HIiDDD IiGID V IDeiKLD (1)On October 5, 2016, we issued a warrant (the "Warrant") to Comcast Cable Communications Management LLC ("Comcast") to purchase up to 1,086,957 shares (the "Warrant Shares") of our common stock. The Warrant was issued by us to Comcast in connection with an agreement between the parties regarding the intended trial deployment by Comcast of a low-power wide-area Network ("LPWAN") in the United States, based on our LoRa Technology. The Warrant is accounted for as equity and the cost is recognized as an offset to net sales over the respective performance period which is expected to be completed by April 2019. The Warrant consists of five performance tranches. The cost associated with each tranche is recognized based on the fair value at each reporting date until vesting which is the measurement date. >L-&LNI X,M[Pe(FL&’ B), /,1Y)Z*+ t,W +1MY /,Q4t,QMp *1 Z)+*14W,+ Q2 *RW W2*W,/,Q+W Z14/)*Q2Si Z144)2QZt*Q12+i RQSRhW2Y Z12+)4W, t2Y Q2Y)+*,QtM W2Yh4t,NW*+g B), W+*Q4t*W 1U +tMW+ sp 4tP1, W2Yh4t,NW* Q+ YW*tQMWY sWM1rC m/W,ZW2*tSW 1U +tMW+l d2*W,/,Q+W !14/)*Q2S ‘2Y)+*,QtM aQSRhd2Y !12+)4W, !144)2QZt*Q12+ B*RW,C 7t,,t2* >Rt,W+ <1*tM KeLE cQ+ZtM wWt,+ KeLF KeLG JI 3 KG 3 JL 3 LK 3 mJl3 JL 3 KG 3 KG 3 LE 3 mLl3 Lee 3 Lee 3 Je3 KG3 KH3 LD3 V3 Lee3 7W sWMQW(W *Rt* 1), YQ(W,+Q*p Q2 W2Yh4t,NW*+ /,1(QYW+ +*tsQMQ*p *1 1), s)+Q2W++ t2Y 1//1,*)2Q*p U1, S,1r*Rg E W,(W,+i r1,N+*t*Q12+i YW+N*1/ A!f 21*Ws11N+i ;M*,ts11N+i 1/*QZtM 41Y)MW+i /,Q2*W,+i Z1/QW,+ UHJI[X,M !+,’%-L( >QS2tM !12YQ*Q12W,+ U1, W,QtM xQSQ*tM ‘2*W,Z122WZ* Q2*W,UtZW ‘!:+ U1, ",1tYZt+* 9QYW1i 9QYW1 1(W, ‘A *WZR21M1Sp U1, A,1 #9 t//MQZt*Q12+ !+--%,HNe&H+,’ B/*QZtM <,t2+ZWQ(W, \1Y)MW ‘!o+ U1, rQ,WMW++ st+W +*t*Q12+ B/*QZtM <,t2+ZWQ(W, \1Y)MW ‘!:+ +)//1,*Q2S Lee\sf+ *1 Leebsf+ U1, 4t,*/R12W+i *tsMW*+i rWt,tsMW+ Zt4W,t+i <9+i +W* *1/ s1qW+ \Wt+),W4W2* 0 Q2+*,)4W2*t*Q12 YW(QZW+i t)*141*Q(W Ibf]4t,*/R12W+i 4WYQt /MtpW,+i *tsMW*+i YQSQ*tMf+*QMM (QYW1 Zt4W,t+ #)*14t*WY 4W*W, ,WtYW,+i Q2Y)+*,QtM t)*14t*Q12i ‘1rQ*ZRW+ [W*r1,N Zt,Y+i ,1)*W,+ t2Y R)s+i *WMWZ14 2W*r1,N s1t,Y+ >4t,*/R12W+i *tsMW*+i rWt,tsMW+ Zt4W,t+i +4t,* <9+i +W* *1/ s1qW+ A1rW, +)//MQW+i rQ,WMW++ ZRt,SQ2Si t)*141*Q(Wi Q2Y)+*,QtM +p+*W4+i 4QMQ*t,pi tW,1+/tZWi 4WYQZtM 9+cL( e,M UHJI[ 7LEHedHEH&a >W,(W,+i r1,N+*t*Q12+i YW+N*1/ A!f 21*Ws11N+ 6Le’+,eEH&a aQ+*1,QZtMMpi 1), ,W+)M*+ Rt(W ,WUMWZ*WY +14W +Wt+12tMQ*pi rQ*R YW4t2Y MW(WM+ SW2W,tMMp sWQ2S +MQSR*Mp M1rW, Q2 *RW Q2Y)+*,QtM t2Y RQSRhW2Y Z12+)4W, /,1Y)Z*+ W2Yh4t,NW*+ Y),Q2S *RW UQ,+* t2Y U1),*R .)t,*W,+ 1U 1), UQ+ZtM pWt, Q2 Z14/t,Q+12 *1 *RW +WZ12Y t2Y *RQ,Y .)t,*W,+g T,&LEELN&%eE !e*H&eE e,M 9(+M%N& hL$LE+*-L,& *t*W+i d),1/W t2Y #+Qt rR1 4t2tSW *RW +tMW+ tZ*Q(Q*QW+ 1U Q2YW/W2YW2* +tMW+ ,W/,W+W2*t*Q(W UQ,4+ t2Y Q2YW/W2YW2* YQ+*,Qs)*1,+g 7W Wq/W2+W 1), tY(W,*Q+Q2S Z1+*+ t+ *RWp t,W Q2Z),,WYg 7W 1/W,t*W Q2*W,2t*Q12tMMp *R,1)SR 1), U1,WQS2 +)s+QYQt,QW+g >W4*WZR m‘2*W,2t*Q12tMl #b +W,(W+ *RW d),1/Wt2 t2Y #+Qt2 4t,NW*+ U,14 Q*+ RWtY.)t,*W,+ Q2 ?t//W,+rQMi >rQ*nW,Mt2Y t2Y *R,1)SR Q*+ rR1MMph1r2WY +)s+QYQt,QW+ st+WY Q2 *RW ;2Q*WY ^Q2SY14 t2Y _t/t2g >W4*WZR m‘2*W,2t*Q12tMl #b tM+1 4tQ2*tQ2+ s,t2ZR 1UUQZW+i WQ*RW, YQ,WZ*Mp 1, *R,1)SR 12W 1U Q*+ rR1MMph1r2WY +)s+QYQt,QW+i Q2 4)M*Q/MW Z1)2*,QW+i Q2ZM)YQ2S !RQ2ti 1)*R ^1,Wtg >W4*WZR !t2tYt !1,/1,t*Q12 +W,(W+ *RW !t2tYQt2 4t,NW* U1, bW22)4 /,1Y)Z*+i rRQZR t,W 21r /t,* 1U *RW >QS2tM ‘2*WS,Q*p A,1Y)Z*+ b,1)/i U,14 Q*+ RWtY.)t,*W,+ Q2 "),MQ2S*12i B2*t,Q1g ‘2YW/W2YW2* ,W/,W+W2*t*Q(W+ t2Y YQ+*,Qs)*1,+ t,W tM+1 )+WY *1 +W,(W Z)+*14W,+ *R,1)SR1)* *RW r1,MYg >14W 1U 1), YQ+*,Qs)*1,+ t2Y +tMW+ ,W/,W+W2*t*Q(W+ tM+1 1UUW, /,1Y)Z*+ U,14 1), Z14/W*Q*1,+i t+ Q+ Z)+*14t,p Q2 *RW Q2Y)+*,pg !%’&+-L(’\ 6eEL’ he&e e,M "eNFE+J #+ t ,W+)M* 1U *RW s,WtY*R 1U 1), /,1Y)Z*+ t2Y 4t,NW*+i rW Rt(W t s,1tY t2Y stMt2ZWY ,t2SW 1U Z)+*14W,+g ?W/,W+W2*t*Q(W !)+*14W,+ sp d2Yh\t,NW*+C X,&L(*(H’L !+-*%&H,J #M/RtsW* ‘2Zg aWrMW**hAtZNt,Y ])q[W* !1,/ T,M%’&(HeE a12WprWMM ‘2Zg ‘*,12i ‘2Zg At2t+12QZ !1,/ BZMt,1i ‘2Zg ?tp*RW12 !14/t2p >t4+)2S dMWZ*,12QZ+ !1gi ]*Yg >)4Q*141 dMWZ*,QZ vRt,/ !1,/1,t*Q12 >121(t ‘2*W,2t*Q12tM >12p !1,/ UHJI[X,M !+,’%-L( !+--%,HNe&H+,’ a)trWQ t4+)2S dMWZ*,12QZ+ !1gi ]*Yg >Rt,/ !1,/1,t*Q12 !Q+Z1 >p+*W4+i ‘2Zg d,QZ++12 a)trWQ t4+)2S dMWZ*,12QZ+ !1gi ]*Yg v*t*W+ m8;g>g8l Z12*,Qs)*WY D3i D3 t2Y LK3i ,W+/WZ*Q(WMp *1 1), +tMW+g c1,WQS2 +tMW+ Z12+*Q*)*WY DL3i DL3 t2Y EE3 1U 1), +tMW+ Y),Q2S UQ+ZtM pWt,+ KeLEi KeLF t2Y KeLGi ,W+/WZ*Q(WMpg >tMW+ *1 Z)+*14W,+ M1Zt*WY Q2 1)*R ^1,Wti _t/t2i t2Y !RQ2t mQ2ZM)YQ2S a12S ^12Sl Z14/,Q+WY G3i E3i H3i t2Y HL3 1U 1), +tMW+i ,W+/WZ*Q(WMpi Q2 UQ+ZtM pWt, KeLEg [1 1*RW, U1,WQS2 Z1)2*,p Z14/,Q+WY 41,W *Rt2 H3 1U +tMW+ Q2 UQ+ZtM pWt, KeLEg >WW [1*W LH *1 1), !12+1MQYt*WY cQ2t2ZQtM >*t*W4W2*+ Q2ZM)YWY Q2 ‘*W4 E 1U *RQ+ #22)tM ?W/1,* 12 c1,4 Leh^ U1, tYYQ*Q12tM UQ2t2ZQtM Q2U1,4t*Q12 sp SW1S,t/RQZ ,WSQ12g #YYQ*Q12tM Q2U1,4t*Q12 ,WSt,YQ2S ZW,*tQ2 ,Q+N+ t++1ZQt*WY rQ*R 1), Q2*W,2t*Q12tM 1/W,t*Q12+ Q+ /,1(QYWY )2YW, ‘*W4 L#g ?Q+N ctZ*1,+ h ?Q+N+ ?WMt*Q2S *1 B), ")+Q2W++ h ?Q+N+ ?WMt*Q2S *1 ‘2*W,2t*Q12tM B/W,t*Q12+g Le >tMW+ sp ?WSQ12 # +)44t,p 1U 2W* +tMW+ sp ,WSQ12 Q+ t+ U1MM1r+C mQ2 *R1)+t2Y+i WqZW/* /W,ZW2*tSW+l KeLE cQ+ZtM wWt,+ KeLF KeLG #+QthAtZQUQZ d),1/W [1,*R #4W,QZt B*RW,C 7t,,t2* >Rt,W+ <1*tM [W* >tMW+ 5 IJDiJIK IJiHEe LKLiLII mLGiKLDl FH 3 5 ILKiLGF IJiJFE F 3 DIiLKJ KL 3 mHiJDGl mJl3 FG 3 5 JHEiIEe EHiHEF IGiLHK V E 3 LF 3 mLl3 FI3 LF3 D3 V3 5 HEFiEIF Lee 3 5 HIIiKFK Lee 3 5 IDeiKLD Lee3 tMW+ h >QS2QUQZt2* !)+*14W,+ m/W,ZW2*tSW 1U 2W* +tMW+l #,,1r dMWZ*,12QZ+ mt2Y tUUQMQt*W+l <,W2Yh*WN t4+)2S dMWZ*,12QZ+ mt2Y tUUQMQt*W+l A,W4QW, tMW+ ^1,Wti ‘2Zg mt2Y tUUQMQt*W+l mLl KeLE cQ+ZtM wWt,+ KeLF KeLG LL3 Le3 E3 G3 Le3 Le3 F3 I3 D3 F3 F3 J3 (1)Premier is a distributor with a concentration of sales to Samsung. The above percentages represent our estimate of the sales activity related to Samsung that is passing through this distributor. !12ZW2*,t*Q12 1U #ZZ1)2*+ ?WZWQ(tsMW h >QS2QUQZt2* !)+*14W,+ t2 xQWS1 Q2 !tMQU1,2Qt% [W)ZR-*WM Q2 >rQ*nW,Mt2Y% t2Y ?Wp21+t Q2 \WqQZ1g g 7W t2*QZQ/t*W *Rt* +)s+*t2*QtMMp tMM *RW +QMQZ12 rtUW,+ rW ,W.)Q,W rQMM Z14W U,14 *RQ,Yh/t,*p U1)2Y,QW+ Q2 UQ+ZtM pWt, KeLDg LL xW+/Q*W 1), )+W 1U *RQ,Yh/t,*p rtUW, U1)2Y,QW+ U1, +1),ZQ2S t 4tP1,Q*p 1U 1), +QMQZ12 2WWY+i rW Y1 4tQ2*tQ2 Q2*W,2tM /,1ZW++ YW(WM1/4W2* Zt/tsQMQ*QW+g B), /,1ZW++ W2SQ2WW,+ r1,N ZM1+WMp rQ*R 1), *RQ,Yh/t,*p U1)2Y,QW+ 12 *RW Q4/,1(W4W2* t2Y YW(WM1/4W2* 1U /,1ZW++ Zt/tsQMQ*QW+g ‘2 UQ+ZtM pWt, KeLEi rW /),ZRt+WY *RW (t+* 4tP1,Q*p 1U 1), rtUW,+ U,14 t//,1qQ4t*WMp U1), YQUUW,W2* *RQ,Yh/t,*p rtUW, U1)2Y,QW+ t2Y )+WY (t,Q1)+ 4t2)UtZ*),Q2S /,1ZW++W+i Q2ZM)YQ2S "Q/1Mt,i !\B>i ?ch!\B> t2Y >QMQZ12 bW,4t2Q)4 m8>QbW8l "Q!\B> /,1ZW++W+g 7RQMW rW Y1 Rt(W +14W ,WY)2Yt2Zp 1U Uts,QZt*Q12 /,1ZW++W+ sp )+Q2S 4)M*Q/MW *RQ,Yh/t,*p U1)2Y,QW+i t2p Q2*W,,)/*Q12 1U +)//Mp sp 12W 1, 41,W 1U *RW+W U1)2Y,QW+ Z1)MY 4t*W,QtMMp Q4/tZ* )+g #+ t ,W+)M*i rW 4tQ2*tQ2 +14W t41)2* 1U s)+Q2W++ Q2*W,,)/*Q12 Q2+),t2ZW Q2 /t,* *1 RWM/ ,WY)ZW *RW UQ2t2ZQtM ,Q+N t++1ZQt*WY rQ*R t rtUW, +)//Mp Q2*W,,)/*Q12i s)* rW t,W 21* U)MMp Q2+),WY tStQ2+* *RQ+ ,Q+Ng #M*R1)SR 1), /,1Y)Z*+ t,W 4tYW U,14 st+QZ 4t*W,QtM+ m/,Q2ZQ/tMMp +QMQZ12i 4W*tM+ t2Y /Mt+*QZ+li tMM 1U rRQZR t,W t(tQMtsMW U,14 t 2)4sW, 1U +)//MQW,+i Zt/tZQ*p t* rtUW, U1)2Y,QW+ +14W*Q4W+ sWZ14W+ Z12+*,tQ2WYg 1)*R ^1,Wt t2Y *RW ARQMQ//Q2W+g 7W Rt(W 1/W,t*Q12+ 1UUQZW+ M1Zt*WY Q2 *RW ARQMQ//Q2W+i \tMtp+Qt t2Y !RQ2t *Rt* +)//1,* t2Y Z11,YQ2t*W +14W 1U *RW r1,MYrQYW +RQ/4W2* 1U /,1Y)Z*+g 7W Rt(W Q2+*tMMWY 1), 1r2 *W+* W.)Q/4W2* t* +14W 1U 1), /tZNtSQ2S t2Y *W+*Q2S +)sZ12*,tZ*1,+ Q2 1,YW, *1 W2+),W t ZW,*tQ2 MW(WM 1U Zt/tZQ*pi t++)4Q2S *RW +)sZ12*,tZ*1, Rt+ t4/MW W4/M1pWW+ *1 1/W,t*W *RW W.)Q/4W2*g B), t,,t2SW4W2*+ rQ*R s1*R *RQ,Yh/t,*p rtUW, U1)2Y,QW+ t2Y /tZNtSW t2Y *W+* +)sZ12*,tZ*1,+ t,W YW+QS2WY *1 /,1(QYW +14W t++),t2ZW 1U Zt/tZQ*p s)* t,W 21* Wq/WZ*WY *1 t++),W tZZW++ *1 tMM *RW 4t2)UtZ*),Q2S Zt/tZQ*p rW 4tp 2WWY Q2 *RW U)*),Wg !+-*L&H&H+, )ZR Z12+1MQYt*Q12+ 4tp 4tNW Q* 41,W YQUUQZ)M* U1, )+ *1 Z14/W*W WUUWZ*Q(WMpi Q2ZM)YQ2S 12 *RW st+Q+ 1U /,QZWi +tMW+ t2Y 4t,NW*Q2S /,1S,t4+i ZRt22WM Z1(W,tSWi *WZR21M1Sp 1, /,1Y)Z* U)2Z*Q12tMQ*pg LK 7W Z12+QYW, 1), /,Q4t,p Z14/W*Q*1,+ rQ*R ,W+/WZ* *1 1), A,1*WZ*Q12 /,1Y)Z*+ *1 Q2ZM)YW ><\QZ,1WMWZ*,12QZ+i [Wq/W,Qti B[ >W4QZ12Y)Z*1, !1,/1,t*Q12 t2Y ‘2UQ2W12 QS2tM ‘2*WS,Q*p /,1Y)Z*+ t,W 1M)*Q12+ a1MYQ2S+i ‘2Zgi ‘2/RQ !1,/1,t*Q12i ",1tYZ14 ]Q4Q*WY t2Y 1), Z)+*14W,+o 1r2 Q2*W,2tM +1M)*Q12+g 7Q*R ,W+/WZ* *1 1), A1rW, t2Y aQSRh ?WMQtsQMQ*p /,1Y)Z*+i rW Z12+QYW, 1), /,Q4t,p Z14/W*Q*1,+ *1 Q2ZM)YW p+*W4+g B), /,Q4t,p Z14/W*Q*1,+ rQ*R ,W+/WZ* *1 1), 7Q,WMW++ t2Y >W2+Q2S /,1Y)Z*+ Q2ZM)YW >QMQZ12 ]ts1,t*1,QW+i W4QZ12Y)Z*1, !1,/ t2Y a)trWQ g /t*W2*+ t2Y EE U1,WQS2 /t*W2*+ t2Y Rt(W 2)4W,1)+ /t*W2* t//MQZt*Q12+ /W2YQ2S rQ*R ,W+/WZ* *1 1), /,1Y)Z*+ t2Y *1 *WZR21M1SQW+ t++1ZQt*WY rQ*R 1), s)+Q2W++g g t2Y Q2 (t,Q1)+ U1,WQS2 P),Q+YQZ*Q12+g ?WSQ+*,t*Q12 SW2W,tMMp /,1(QYW+ ,QSR*+ Q2 tYYQ*Q12 *1 st+QZ *,tYW4t,N /,1*WZ*Q12+ t2Y Q+ *p/QZtMMp ,W2WrtsMW )/12 /,11U 1U Z12*Q2)WY )+Wg 7W Rt(W ,WSQ+*W,WYi 1, t,W Q2 *RW /,1ZW++ 1U ,WSQ+*W,Q2Si 1), >d\W4*WZR ‘2*W,2t*Q12tM *,tYW 2t4Wg g xW/t,*4W2* 1U xWUW2+W m8xBx8lg ‘2 1,YW, *1 4tQ2*tQ2 *RW+W .)tMQUQZt*Q12+i rW 4)+* Z14/Mp rQ*R ZW,*tQ2 +/WZQUQZt*Q12+ /,14)MSt*WY sp *RW xBxg #+ /t,* 1U 4tQ2*tQ2Q2S *RW+W .)tMQUQZt*Q12+i rW t,W ,1)*Q2WMp t)YQ*WY sp *RW xBxg "t+WY 12 Z),,W2* +/WZQUQZt*Q12+i rW sWMQW(W rW Zt2 4tQ2*tQ2 1), .)tMQUQZt*Q12+ U1, *RW U1,W+WWtsMW U)*),Wg a1rW(W,i *RW+W +/WZQUQZt*Q12+ Z1)MY sW 41YQUQWY sp *RW xBx Q2 *RW U)*),W 1, rW Z1)MY sWZ14W +)sPWZ* *1 1*RW, S1(W,24W2* ,W.)Q,W4W2*+i rRQZR Z1)MY 4tNW *RW 4t2)UtZ*),Q2S 1U *RW+W /,1Y)Z*+ 41,W YQUUQZ)M* t2Y *R)+ Z1)MY tY(W,+WMp Q4/tZ* 1), /,1UQ*tsQMQ*p Q2 *RW A1rW, t2Y aQSRh?WMQtsQMQ*p /,1Y)Z* S,1)/g ‘2 UQ+ZtM pWt, KeLEi 1), +tMW+ *Rt* +W,(W 4QMQ*t,p t2Y tW,1+/tZW 4t,NW*+ 4tYW )/ K3 1U 2W* +tMW+g g >*t*W xW/t,*4W2* Rt+ YW*W,4Q2WY *Rt* t +4tMM 2)4sW, 1U +/WZQtM t++W4sMQW+ U,14 *RW A1rW, t2Y aQSRh?WMQtsQMQ*p /,1Y)Z* MQ2W t,W +)sPWZ* *1 *RW ‘2*W,2t*Q12tM <,tUUQZ Q2 #,4+ ?WS)Mt*Q12+ m8‘<#?8lg 7W Rt(W t *t*W xW/t,*4W2* MQZW2+Wg LJ c1, U),*RW, YQ+Z)++Q12 ,WMt*WY *1 W2(Q,124W2*tM 4t**W,+i +WW [1*W LJ *1 1), !12+1MQYt*WY cQ2t2ZQtM >*t*W4W2*+ Q2ZM)YWY Q2 ‘*W4 E 1U *RQ+ #22)tM ?W/1,* 12 c1,4 Leh^g #$eHEedEL T,K+(-e&H+, bW2W,tM Q2U1,4t*Q12 ts1)* )+ Zt2 sW U1)2Y 12 1), rWs+Q*W t* www.semtech.comg d!g 7W 4tNW t(tQMtsMW U,WW 1U ZRt,SWi WQ*RW, sp YQ,WZ* tZZW++ 12 1), rWs+Q*W 1, t MQ2N *1 *RW >d! rWs+Q*Wi 1), t22)tM ,W/1,* 12 c1,4 Leh^i .)t,*W,Mp ,W/1,*+ 12 c1,4 Leh@i Z),,W2* ,W/1,*+ 12 c1,4 Eh^ t2Y t4W2Y4W2*+ *1 *R1+W ,W/1,*+ UQMWY 1, U),2Q+RWY /),+)t2* *1 >WZ*Q12 LJmtl 1, LHmYl 1U *RW >WZ),Q*QW+ dqZRt2SW #Z* 1U LDJIi t+ t4W2YWY m*RW 8dqZRt2SW #Z*8li t+ +112 t+ ,Wt+12tsMp /,tZ*QZtsMW tU*W, +)ZR ,W/1,*+ t,W WMWZ*,12QZtMMp UQMWY rQ*Ri 1, U),2Q+RWY *1i *RW >d!g B), ,W/1,*+ UQMWY rQ*Ri 1, U),2Q+RWY *1i *RW >d! t,W tM+1 t(tQMtsMW YQ,WZ*Mp t* *RW >d!:+ rWs+Q*W t* rrrg+WZgS1(g LI T&L- D#Z 7H’F WeN&+(’ You should carefully consider and evaluate all of the information in this Annual Report on Form 10-K, including the risk factors listed below. The risks described below are not the only ones facing our Company. Additional risks not now known to us or that we currently deem immaterial may also impair our business operations. If any of these risks actually occur, our business could be materially harmed. If our business is harmed, the trading price of our common stock could decline. As discussed earlier in "Special Note Regarding Forward-Looking and Cautionary Statements," this Annual Report on Form 10-K contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of such risks and uncertainties and certain factors including the risks faced by us described below and elsewhere in this Annual Report on Form 10-K, including, without limitation, information under the section "Management's Discussion and Analysis of Financial Condition and Results of Operations" and additional factors that accompany the related forward-looking statements in this Annual Report on Form 10-K, in the Company's other filings with the SEC, and in material incorporated herein and therein by reference. In light of the significant risks and uncertainties inherent in the forward-looking information included herein that may cause actual performance and results to differ materially from those predicted, any such forward-looking information should not be regarded as representations or guarantees by the Company of future performance or results, or that its objectives or plans will be achieved or that any of its operating expectations or financial forecasts will be realized. Reported results should not be considered an indication of future performance. Investors are cautioned not to place undue reliance on any forward-looking information contained herein, which reflect management's analysis only as of the date hereof. Except as required by law, the Company assumes no obligation to publicly release the results of any update or revision to any forward-looking statements that may be made to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated or future events, or otherwise. Risks Relating to General Business Conditions :%( K%&%(L (L’%E&’ -ea KE%N&%e&L\ KeHE &+ -e&NI *e’& *L(K+(-e,NL +( KeHE &+ -LL& Lb*LN&e&H+,’Z B), ,W+)M*+ 4tp UM)Z*)t*W Q2 *RW U)*),Wi 4tp UtQM *1 4t*ZR 1), /t+* /W,U1,4t2ZW 1, UtQM *1 4WW* 1), Wq/WZ*t*Q12+ t2Y *RW Wq/WZ*t*Q12+ 1U t2tMp+*+ t2Y Q2(W+*1,+g B), ,W+)M*+ t2Y ,WMt*WY ,t*Q1+i +)ZR t+ S,1++ 4t,SQ2i 1/W,t*Q2S Q2Z14W /W,ZW2*tSW t2Y WUUWZ*Q(W *tq ,t*W 4tp UM)Z*)t*W t+ t ,W+)M* 1UC & & & & & & & & & & & & SW2W,tM WZ1214QZ Z12YQ*Q12+ Q2 *RW Z1)2*,QW+ rRW,W rW +WMM 1), /,1Y)Z*+% +Wt+12tMQ*p t2Y (t,QtsQMQ*p Q2 *RW Z14/)*W, 4t,NW* t2Y 1), 1*RW, W2Yh4t,NW*+% *RW *Q4Q2S 1U 2Wr /,1Y)Z* Q2*,1Y)Z*Q12+ sp )+i 1), Z)+*14W,+ t2Y 1), Z14/W*Q*1,+% /,1Y)Z* 1s+1MW+ZW2ZW% *RW +ZRWY)MQ2Si ,W+ZRWY)MQ2S 1, Zt2ZWMMt*Q12 1U 1,YW,+ sp 1), Z)+*14W,+% *RW ZpZMQZtM 2t*),W 1U YW4t2Y U1, 1), Z)+*14W,+: /,1Y)Z*+% 1), tsQMQ*p *1 /,WYQZ* t2Y 4WW* W(1M(Q2S Q2Y)+*,p +*t2Yt,Y+ t2Y Z12+)4W, /,WUW,W2ZW+% 1), tsQMQ*p *1 YW(WM1/ 2Wr /,1ZW++ *WZR21M1SQW+ t2Y tZRQW(W (1M)4W /,1Y)Z*Q12% 1), tsQMQ*p *1 Q2*WS,t*W t2Y ,WtMQnW +p2W,SQW+ U,14 ,WZW2* tZ.)Q+Q*Q12+% ZRt2SW+ Q2 4t2)UtZ*),Q2S pQWMY+% Zt/tZQ*p )*QMQnt*Q12% /,1Y)Z* 4Qq t2Y /,QZQ2S% & 41(W4W2*+ Q2 WqZRt2SW ,t*W+i Q2*W,W+* ,t*W+ 1, *tq ,t*W+% & & & *RW t(tQMtsQMQ*p 1U tYW.)t*W +)//Mp Z144Q*4W2*+ U,14 1), 1)*+QYW +)//MQW,+% *RW 4t2)UtZ*),Q2S t2Y YWMQ(W,p Zt/tsQMQ*QW+ 1U 1), +)sZ12*,tZ*1,+% t2Y MQ*QSt*Q12 t2Y ,WS)Mt*1,p 4t**W,+g #+ t ,W+)M* 1U *RW+W UtZ*1,+i 1), /t+* UQ2t2ZQtM ,W+)M*+ t,W 21* 2WZW++t,QMp Q2YQZt*Q(W 1U 1), U)*),W ,W+)M*+g LH h+c,&%(,’ H, &IL d%’H,L’’ NaNEL N+%EM eM$L(’LEa eKKLN& +%( (L$L,%L’ e,M *(+KH&edHEH&aZ g t2Y *RW ,W+* 1U *RW r1,MYi 1, *QSR* Z,WYQ* 4t,NW*+g ‘2 tYYQ*Q12i WZ1214QZ +M1rY1r2+ 4tp tM+1 tUUWZ* 1), Z)+*14W,+: tsQMQ*p *1 /tp U1, 1), /,1Y)Z*+g #ZZ1,YQ2SMpi WZ1214QZ +M1rY1r2+ 4tp Rt,4 1), s)+Q2W++g 5IL e$L(eJL ’LEEH,J *(HNL’ +K *(+M%N&’ H, +%( -e(FL&’ Ie$L IH’&+(HNeEEa MLN(Le’LM (e*HMEa e,M cHEE EHFLEa M+ ’+ H, &IL K%&%(L\ cIHNI N+%EM Ie(- +%( (L$L,%L e,M J(+’’ -e(JH,’Z #+ Q+ 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1), /,1Y)Z*+ 1, 1), Z)+*14W,+: /,1Y)Z*+g Risks Relating to Production Operations 0L +d&eH, -e,a L’’L,&HeE N+-*+,L,&’ e,M -e&L(HeE’ e,M NL(&eH, N(H&HNeE -e,%KeN&%(H,J ’L($HNL’ K(+- e EH-H&LM ,%-dL( +K ’%**EHL(’ e,M ’%dN+,&(eN&+(’\ -+’& +K cIHNI e(L K+(LHJ,[de’LM L,&H&HL’Z B), ,WMQt2ZW 12 t MQ4Q*WY 2)4sW, 1U +)sZ12*,tZ*1,+ t2Y +)//MQW,+ U1, rtUW,+i /tZNtSQ2Si *W+*Q2S t2Y ZW,*tQ2 1*RW, /,1ZW++W+ Q2(1M(W+ +W(W,tM ,Q+N+i Q2ZM)YQ2S /1*W2*QtM Q2tsQMQ*p *1 1s*tQ2 t2 tYW.)t*W +)//Mp 1U ,W.)Q,WY Z14/12W2*+ t2Y ,WY)ZWY Z12*,1M 1(W, *RW /,QZWi *Q4WMp YWMQ(W,pi ,WMQtsQMQ*p t2Y .)tMQ*p 1U Z14/12W2*+g 1)*R ^1,Wti Q2ZW t YWUWZ* 1, UtQM),W Q2 1), /,1Y)Z* Z1)MY SQ(W ,Q+W *1 UtQM),W+ Q2 *RW S11Y+ *Rt* Q2Z1,/1,t*W *RW4 mt2Y Z12+W.)W2*QtM ZMtQ4+ U1, Yt4tSW+ tStQ2+* 1), Z)+*14W,+ U,14 *RWQ, Z)+*14W,+li rW 4tp UtZW ZMtQ4+ U1, Yt4tSW+ *Rt* t,W YQ+/,1/1,*Q12t*W *1 *RW ,W(W2)W+ t2Y /,1UQ*+ rW ,WZWQ(W U,14 *RW /,1Y)Z*+ Q2(1M(WYg B), SW2W,tM rt,,t2*p /1MQZp /,1(QYW+ U1, ,W/tQ, 1, ,W/MtZW4W2* 1U YWUWZ*Q(W /t,*+g ‘2 +14W Zt+W+i t ,WU)2Y 1U *RW /),ZRt+W /,QZW Q+ 1UUW,WYg ‘2 ZW,*tQ2 Q2+*t2ZW+i rW Rt(W tS,WWY *1 1*RW, rt,,t2*p *W,4+i Q2ZM)YQ2S +14W Q2YW42QUQZt*Q12 /,1(Q+Q12+i rRQZR Z1)MY /,1(W *1 sW +QS2QUQZt2*Mp 41,W Z1+*Mp *Rt2 ,W/tQ,i ,W/MtZW4W2* 1, ,WU)2Yg 7W t**W4/* *1 MQ4Q* 1), MQtsQMQ*p *R,1)SR 1), +*t2Yt,Y *W,4+ t2Y Z12YQ*Q12+ t2Y 2WS1*Qt*Q12 1U +tMW t2Y 1*RW, Z)+*14W, Z12*,tZ*+i s)* *RW,W Q+ 21 t++),t2ZW *Rt* +)ZR MQ4Q*t*Q12+ rQMM sW tZZW/*WY 1, WUUWZ*Q(Wg 7RQMW rW 4tQ2*tQ2 +14W Q2+),t2ZW U1, +)ZR W(W2*+i t +)ZZW++U)M rt,,t2*p 1, /,1Y)Z* MQtsQMQ*p ZMtQ4 tStQ2+* )+ Q2 WqZW++ 1U 1), t(tQMtsMW Q2+),t2ZW Z1(W,tSWi QU t2pi t2Y W+*tsMQ+RWY ,W+W,(W+i 1, t ,W.)Q,W4W2* *Rt* rW /t,*QZQ/t*W Q2 t /,1Y)Z* ,WZtMMi r1)MY Rt(W tY(W,+W WUUWZ*+ m*Rt* Z1)MY sW 4t*W,QtMl 12 1), s)+Q2W++i 1/W,t*Q2S ,W+)M*+ t2Y UQ2t2ZQtM Z12YQ*Q12g #YYQ*Q12tMMpi Q2 *RW W(W2* *Rt* 1), /,1Y)Z*+ UtQM *1 /W,U1,4 t+ Wq/WZ*WYi 1), ,W/)*t*Q12 4tp sW Yt4tSWYi rRQZR Z1)MY 4tNW Q* 41,W YQUUQZ)M* U1, )+ *1 +WMM 1), /,1Y)Z*+ *1 WqQ+*Q2S t2Y /,1+/WZ*Q(W Z)+*14W,+ t2Y Z1)MY tY(W,+WMp tUUWZ* 1), s)+Q2W++i 1/W,t*Q2S ,W+)M*+ t2Y UQ2t2ZQtM Z12YQ*Q12g LE :d’+EL&L H,$L,&+(HL’ e’ e (L’%E& +K NIe,JL’ H, ML-e,M K+( +%( *(+M%N&’ e,M NIe,JL H, EHKL NaNEL’ +K +%( *(+M%N&’ N+%EM eM$L(’LEa eKKLN& +%( d%’H,L’’\ +*L(e&H,J (L’%E&’ e,M KH,e,NHeE N+,MH&H+,Z g 0L -ea ’%KKL( E+’’L’ e,M d%’H,L’’ H,&L((%*&H+, HK +%( *(+M%N&’ H,K(H,JL &IL H,&LEELN&%eE *(+*L(&a (HJI&’ +K +&IL(’Z tMW+ t,W 4tYW /,Q4t,QMp 12 t Z),,W2* YWMQ(W,p st+Q+i /),+)t2* *1 /),ZRt+W 1,YW,+ *Rt* 4tp sW ,W(Q+WY 1, Zt2ZWMMWY sp 1), Z)+*14W,+ rQ*R1)* /W2tM*pi ,t*RW, *Rt2 /),+)t2* *1 M12Sh*W,4 Z12*,tZ*+g >14W Z12*,tZ*+ ,W.)Q,W *Rt* rW 4tQ2*tQ2 Q2(W2*1,QW+ 1U ZW,*tQ2 /,1Y)Z*+ t* MW(WM+ ts1(W *RW t2*QZQ/t*WY 2WWY+ 1U 1), Z)+*14W,+g #+ t ,W+)M*i rW 4)+* Z144Q* ,W+1),ZW+ *1 *RW /,1Y)Z*Q12 1U /,1Y)Z*+ rQ*R1)* sQ2YQ2S /),ZRt+W Z144Q*4W2*+ U,14 Z)+*14W,+g B), Q2tsQMQ*p *1 +WMM /,1Y)Z*+ tU*W, rW YW(1*W +QS2QUQZt2* ,W+1),ZW+ *1 *RW4 Z1)MY Rt,4 1), s)+Q2W++g Risks Relating to International Operations 0L ’LEE e,M &(eML cH&I K+(LHJ, N%’&+-L(’\ cIHNI ’%dGLN&’ +%( d%’H,L’’ &+ H,N(Le’LM (H’F’Z >tMW+ *1 U1,WQS2 Z)+*14W,+ tZZ1)2*WY U1, t//,1qQ4t*WMp DL3 1U 2W* +tMW+ Q2 *RW UQ+ZtM pWt, W2YWY _t2)t,p KEi KeLEg >tMW+ *1 1), Z)+*14W,+ M1Zt*WY Q2 !RQ2t mQ2ZM)YQ2S a12S ^12Sl t2Y >1)*R ^1,Wt Z12+*Q*)*WY HL3 t2Y E3i ,W+/WZ*Q(WMpi 1U 2W* +tMW+ U1, UQ+ZtM pWt, KeLEg ‘2*W,2t*Q12tM +tMW+ t,W +)sPWZ* *1 ZW,*tQ2 ,Q+N+i Q2ZM)YQ2S )2Wq/WZ*WY ZRt2SW+ Q2 ,WS)Mt*1,p ,W.)Q,W4W2*+i *t,QUU+ t2Y 1*RW, st,,QW,+i /1MQ*QZtM t2Y WZ1214QZ Q2+*tsQMQ*pi YQUUQZ)M*QW+ Q2 tZZ1)2*+ ,WZWQ(tsMW Z1MMWZ*Q12i YQUUQZ)M*QW+ Q2 4t2tSQ2S YQ+*,Qs)*1,+ t2Y ,W/,W+W2*t*Q(W+i YQUUQZ)M*QW+ Q2 +*tUUQ2S t2Y 4t2tSQ2S U1,WQS2 +)s+QYQt,p t2Y s,t2ZR 1/W,t*Q12+ t2Y /1*W2*QtMMp Ke tY(W,+W *tq Z12+W.)W2ZW+g B*RW, ,Q+N+ Q2ZM)YW M1ZtM s)+Q2W++ t2Y Z)M*),tM UtZ*1,+ *Rt* 4tp YQUUW, U,14 1), Y14W+*QZ +*t2Yt,Y+ t2Y /,tZ*QZW+i Q2ZM)YQ2S s)+Q2W++ /,tZ*QZW+ U,14 rRQZR rW t,W /,1RQsQ*WY U,14 W2StSQ2S sp *RW c1,WQS2 !1,,)/* A,tZ*QZW+ #Z* t2Y 1*RW, t2*QhZ1,,)/*Q12 Mtr+ t2Y ,WS)Mt*Q12+i Mtr+ 1U ZW,*tQ2 U1,WQS2 Z1)2*,QW+ *Rt* 4tp 21* /,1*WZ* 1), /,1Y)Z*+i t++W*+ 1, Q2*WMMWZ*)tM /,1/W,*p ,QSR*+ *1 *RW +t4W Wq*W2* t+ Y1 ;g>g Mtr+i t2Y YQUUQZ)M*QW+ W2U1,ZQ2S Z12*,tZ*+ Q2 +)ZR U1,WQS2 Z1)2*,QW+ SW2W,tMMpg W4*WZR 2t4W 4tp sW /,1RQsQ*WY 1, ,W+*,QZ*WY Q2 +14W Z1)2*,QW+i rRQZR 4tp 2WSt*Q(WMp Q4/tZ* 1), +tMW+ WUU1,*+g ‘2 tYYQ*Q12i +)s+*t2*QtMMp tMM 1U 1), U1,WQS2 +tMW+ t,W YW214Q2t*WY Q2 ;g>g Y1MMt,+ t2Y Z),,W2Zp WqZRt2SW UM)Z*)t*Q12+ Q2 Z1)2*,QW+ rRW,W rW Y1 s)+Q2W++ Z1)MY Rt,4 )+ sp ,W+)M*Q2S Q2 /,QZQ2S *Rt* Q+ 21* Z14/W*Q*Q(W rQ*R /,QZW+ YW214Q2t*WY Q2 M1ZtM Z),,W2ZQW+g :%( K+(LHJ, N%((L,Na Lb*+’%(L’ -ea NIe,JL +$L( &H-L e’ &IL EL$LE +K eN&H$H&a H, K+(LHJ, -e(FL&’ J(+c’ e,M N+%EM Ie$L e, eM$L(’L H-*eN& %*+, KH,e,NHeE (L’%E&’Z #+ t SM1stM W2*W,/,Q+Wi rW UtZW Wq/1+),W *1 tY(W,+W 41(W4W2*+ Q2 U1,WQS2 Z),,W2Zp WqZRt2SW ,t*W+g !W,*tQ2 1U 1), t++W*+i Q2ZM)YQ2S ZW,*tQ2 st2N tZZ1)2*+i WqQ+* Q2 212h;g>g Y1MMt,hYW214Q2t*WY Z),,W2ZQW+i rRQZR t,W +W2+Q*Q(W *1 U1,WQS2 Z),,W2Zp WqZRt2SW ,t*W UM)Z*)t*Q12+g g Y1MMt,hYW214Q2t*WY Z),,W2ZQW+ t,W /,Q2ZQ/tMMp *RW >rQ++ c,t2Zi d),1i !t2tYQt2 Y1MMt,+i \WqQZt2 AW+1i _t/t2W+W wW2 t2Y ",Q*Q+R A1)2Y >*W,MQ2Sg 7W tM+1 Rt(W t +QS2QUQZt2* 2)4sW, 1U W4/M1pWW+ *Rt* t,W /tQY Q2 U1,WQS2 Z),,W2Zpi *RW Mt,SW+* S,1)/+ sWQ2S ;2Q*WY ^Q2SY14hst+WY W4/M1pWW+ rR1 t,W /tQY Q2 ",Q*Q+R A1)2Y >*W,MQ2Si >rQ++h st+WY W4/M1pWW+ rR1 t,W /tQY Q2 >rQ++ c,t2Z+i !t2tYthst+WY W4/M1pWW+ rR1 t,W /tQY Q2 !t2tYQt2 Y1MMt,+i t2Y \WqQZt2 2t*Q12tM+ rR1 t,W /tQY Q2 \WqQZt2 AW+1+g ‘U *RW (tM)W 1U *RW ;g>g Y1MMt, rWtNW2+ ,WMt*Q(W *1 *RW+W +/WZQUQZ Z),,W2ZQW+i t+ Q* Rt+ Y12W Q2 ,WZW2* pWt,+i *RW Z1+* 1U Y1Q2S s)+Q2W++ Q2 *W,4+ 1U ;g>g Y1MMt,+ ,Q+W+g 7Q*R *RW S,1r*R 1U 1), Q2*W,2t*Q12tM s)+Q2W++i 1), U1,WQS2 Z),,W2Zp Wq/1+),W+ 4tp S,1r t2Y )2YW, ZW,*tQ2 ZQ,Z)4+*t2ZW+i Z1)MY Rt,4 1), s)+Q2W++g #+ t 4Wt2+ 1U 4t2tSQ2S 1), U1,WQS2 WqZRt2SW Wq/1+),Wi rW ,1)*Q2WMp Z12(W,* ;g>g Y1MMt,+ Q2*1 U1,WQS2 Z),,W2Zp Q2 tY(t2ZW 1U *RW Wq/WZ*WY /tp4W2*g 7W ,WS)Mt,Mp t++W++ rRW*RW, 1, 21* *1 RWYSW U1,WQS2 WqZRt2SW Wq/1+),Wg #2p U)*),W )+W 1U U1,rt,Y Z12*,tZ*+ *1 RWYSW U1,WQS2 WqZRt2SW Wq/1+),W 4tp sW ,W.)Q,WY *1 sW 4t,NWYh*1h4t,NW* WtZR .)t,*W, t2Y Zt2 Z,Wt*W (1Mt*QMQ*p Q2 2W* Q2Z14W 21* YQ,WZ*Mp *QWY *1 1), 1/W,t*Q2S ,W+)M*+g 0L -ea dL ’%dGLN& &+ H,N(Le’LM &eb EHedHEH&HL’ e,M e, H,N(Le’LM LKKLN&H$L &eb (e&L HK cL ,LLM &+ (L*e&(He&L K%,M’ ILEM da +%( K+(LHJ, ’%d’HMHe(HL’Z #+ 1U _t2)t,p KEi KeLEi rW YQY 21* /,1(QYW Q2Z14W t2Y rQ*RR1MYQ2S *tqW+ U1, 5IHJgG 4QMMQ12 m8;2*tqWY c)2Y+8l 1U 1), *1*tM 5GDJgG 4QMMQ12 1U U1,WQS2 +)s+QYQt,QW+ *1*tM U1,WQS2 Wt,2Q2S+g ‘U rW 2WWYWY *RW+W ;2*tqWY c)2Y+ U1, Q2(W+*4W2* Q2 1), Y14W+*QZ 1/W,t*Q12+i t2p ,W/t*,Qt*Q12i Z1)MY ,W+)M* Q2 Q2Z,Wt+WY *tq MQtsQMQ*QW+ t2Y t RQSRW, WUUWZ*Q(W *tq ,t*Wg 0L e(L ’%dGLN& &+ Lb*+(& (L’&(HN&H+,’ e,M Eec’ eKKLN&H,J &(eML e,M H,$L’&-L,&’Z #+ t SM1stM Z14/t2p RWtY.)t,*W,WY Q2 *RW ;g>gi rW t,W +)sPWZ* *1 ;g>g Mtr+ t2Y ,WS)Mt*Q12+ *Rt* MQ4Q* t2Y ,W+*,QZ* *RW Wq/1,* 1U +14W 1U 1), /,1Y)Z*+ t2Y +W,(QZW+ t2Y 4tp ,W+*,QZ* 1), *,t2+tZ*Q12+ rQ*R ZW,*tQ2 Z)+*14W,+i s)+Q2W++ /t,*2W,+ t2Y 1*RW, /W,+12+i Q2ZM)YQ2Si Q2 ZW,*tQ2 Zt+W+i YWtMQ2S+ rQ*R 1, sW*rWW2 1), W4/M1pWW+ t2Y +)s+QYQt,QW+g ‘2 ZW,*tQ2 ZQ,Z)4+*t2ZW+i Wq/1,* Z12*,1M t2Y WZ1214QZ +t2Z*Q12+ ,WS)Mt*Q12+ 4tp /,1RQsQ* *RW Wq/1,* 1U ZW,*tQ2 /,1Y)Z*+i +W,(QZW+ t2Y *WZR21M1SQW+i t2Y Q2 1*RW, ZQ,Z)4+*t2ZW+ rW 4tp sW ,W.)Q,WY *1 1s*tQ2 t2 Wq/1,* MQZW2+W sWU1,W Wq/1,*Q2S *RW Z12*,1MMWY Q*W4g !14/MQt2ZW rQ*R *RW+W Mtr+ Rt+ 21* +QS2QUQZt2*Mp MQ4Q*WY 1), 1/W,t*Q12+ 1, 1), +tMW+ Q2 *RW ,WZW2* /t+*i s)* Z1)MY +QS2QUQZt2*Mp MQ4Q* *RW4 Q2 *RW U)*),Wg 7W 4tQ2*tQ2 t2 Wq/1,* Z14/MQt2ZW /,1S,t4 s)* *RW,W t,W ,Q+N+ *Rt* *RW Z14/MQt2ZW Z12*,1M+ Z1)MY sW ZQ,Z)4(W2*WYi Wq/1+Q2S )+ *1 MWStM MQtsQMQ*QW+g 7W 4)+* tM+1 Z14/Mp rQ*R Wq/1,* ,W+*,QZ*Q12+ t2Y Mtr+ Q4/1+WY sp 1*RW, Z1)2*,QW+ tUUWZ*Q2S *,tYW t2Y Q2(W+*4W2*+g #M*R1)SR *RW+W ,W+*,QZ*Q12+ t2Y Mtr+ Rt(W 21* +QS2QUQZt2*Mp ,W+*,QZ*WY 1), 1/W,t*Q12+ Q2 *RW ,WZW2* /t+*i *RW,W Q+ t ,Q+N *Rt* *RWp Z1)MY Y1 +1 Q2 *RW U)*),Wg c1, Wqt4/MWi 12 \t,ZR Ei KeLGi *RW ;g>g xW/t,*4W2* 1U !144W,ZW /)sMQ+RWY t UQ2tM ,)MW Q2 *RW cWYW,tM ?WSQ+*W, *Rt* t4W2YWY *RW dq/1,* #Y4Q2Q+*,t*Q12 ?WS)Mt*Q12+ sp tYYQ2S vg gh,WS)Mt*WY /,1Y)Z*+i +1U*rt,W t2Y *WZR21M1Sp *1 *RW YW+QS2t*WY vg xW/t,*4W2* 1U !144W,ZW Q++)WY t *W4/1,t,p SW2W,tM MQZW2+W +)+/W2YQ2S *RW W2Rt2ZWY Wq/1,* MQZW2+Q2S ,W.)Q,W4W2*+ U1, vWZ),Q*p ,W41(WY vg ,WS)Mt*1,p +Z,)*Q2p 1, Wq/1,* ,W+*,QZ*Q12+ Z1)MY +)sPWZ* )+ *1 tZ*)tM 1, /W,ZWQ(WY ,W/)*t*Q12tM Rt,4 t412S Z),,W2* 1, /,1+/WZ*Q(W Q2(W+*1,+i +)//MQW,+ 1, Z)+*14W,+i Z)+*14W,+ 1U 1), Z)+*14W,+i 1*RW, /t,*QW+ Y1Q2S s)+Q2W++ rQ*R )+i 1, *RW SW2W,tM /)sMQZg #2p +)ZR ,W/)*t*Q12tM Rt,4 Z1)MY ,W+)M* Q2 *RW M1++ 1U Q2(W+*1,+i +)//MQW,+ 1, Z)+*14W,+i rRQZR Z1)MY Rt,4 1), s)+Q2W++i UQ2t2ZQtM Z12YQ*Q12i 1/W,t*Q2S ,W+)M*+ 1, /,1+/WZ*+g Risks Relating to Sales, Marketing and Competition 0L N+-*L&L eJeH,’& Ee(JL(\ -+(L L’&edEH’ILM L,&H&HL’ e,M +%( -e(FL& ’Ie(L -ea dL (LM%NLM HK cL e(L %,edEL &+ (L’*+,M &+ +%( N+-*L&H&+(’ LKKLN&H$LEaZ <\QZ,1WMWZ*,12QZ+i [Wq/W,Qti B[ >W4QZ12Y)Z*1, !1,/1,t*Q12 t2Y ‘2UQ2W12 QS2tM ‘2*WS,Q*p A,1Y)Z*+ t,W 1M)*Q12+ a1MYQ2S+i ‘2Zgi ‘2/RQ !1,/1,t*Q12i ",1tYZ14 ]Q4Q*WYi #//MQWY \QZ,1 !Q,Z)Q*+ !1,/1,t*Q12 t2Y 1), Z)+*14W,+o 1r2 Q2*W,2tM +1M)*Q12+g 7Q*R ,W+/WZ* *1 1), A1rW, t2Y aQSRh?WMQtsQMQ*p /,1Y)Z*+i rW Z12+QYW, 1), /,Q4t,p Z14/W*Q*1,+ *1 Q2ZM)YW p+*W4+g B), /,Q4t,p Z14/W*Q*1,+ rQ*R ,W+/WZ* *1 1), 7Q,WMW++ t2Y >W2+Q2S /,1Y)Z*+ Q2ZM)YW >QMQZ12 ]ts1,t*1,QW+i W4QZ12Y)Z*1, !1,/1,t*Q12 t2Y a)trWQ 14W 1U 1), Z14/W*Q*1,+ Rt(W 4tYW tZ.)Q+Q*Q12+ 1, W2*W,WY Q2*1 /t,*2W,+RQ/+ 1, 1*RW, +*,t*WSQZ ,WMt*Q12+RQ/+ *1 1UUW, t 41,W Z14/,WRW2+Q(W +1M)*Q12 *Rt2 *RWp Q2YQ(QY)tMMp RtY 1UUW,WYg >)ZR Z12+1MQYt*Q12+ 1, +*,t*WSQZ /t,*2W,+RQ/+ 4tp Z12*Q2)W Q2 *RW U)*),Wg tMW+ h >QS2QUQZt2* !)+*14W,+ m/W,ZW2*tSW 1U 2W* +tMW+l #,,1r dMWZ*,12QZ+ mt2Y tUUQMQt*W+l <,W2Yh*WN t4+)2S dMWZ*,12QZ+ mt2Y tUUQMQt*W+l A,W4QW, tMW+ ^1,Wti ‘2Zg mt2Y tUUQMQt*W+l mLl KeLE cQ+ZtM wWt,+ KeLF KeLG LL3 Le3 E3 G3 Le3 Le3 F3 I3 D3 F3 F3 J3 (1)Premier is a distributor with a concentration of sales to Samsung. The above percentages represent our estimate of the sales activity related to Samsung that is passing through this distributor. !12ZW2*,t*Q12 1U #ZZ1)2*+ ?WZWQ(tsMW h >QS2QUQZt2* !)+*14W,+ tMW+ *1 1), Z)+*14W,+ t,W SW2W,tMMp 4tYW 12 1/W2 tZZ1)2*i +)sPWZ* *1 Z,WYQ* MQ4Q*+ rW 4tp Q4/1+Wi t2Y *RW ,WZWQ(tsMW+ t,W +)sPWZ* *1 *RW ,Q+N 1U sWQ2S )2Z1MMWZ*QsMWg 5IL $+Ee&HEH&a +K N%’&+-L( ML-e,M EH-H&’ +%( edHEH&a &+ *(LMHN& K%&%(L EL$LE’ +K ’eEL’ e,M *(+KH&edHEH&aZ 7W /,Q4t,QMp Z12Y)Z* 1), +tMW+ 12 t /),ZRt+W 1,YW, st+Q+i ,t*RW, *Rt2 /),+)t2* *1 M12Sh*W,4 Z12*,tZ*+g W4QZ12Y)Z*1, +)//MQW,+ Zt2 ,t/QYMp Q2Z,Wt+W /,1Y)Z*Q12 1)*/)* Q2 ,W+/12+W *1 +MQSR* Q2Z,Wt+W+ Q2 YW4t2Yi MWtYQ2S *1 t +)YYW2 1(W,+)//Mp +Q*)t*Q12 t2Y t +)s+W.)W2* ,WY)Z*Q12 Q2 1,YW, ,t*W+ t2Y ,W(W2)W+ t+ Z)+*14W,+ tYP)+* *RWQ, Q2(W2*1,QW+ *1 tZZ1)2* U1, +R1,*W, MWtY *Q4W+g !12(W,+WMpi rRW2 ZQ,Z)4+*t2ZW+ Z,Wt*W M12SW, MWtY *Q4W+ Z)+*14W,+ 4tp 1,YW, Q2 WqZW++ 1U rRt* *RWp 2WWY *1 W2+),W t(tQMtsQMQ*pi *RW2 Zt2ZWM 1,YW,+ QU MWtY *Q4W+ 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Unresolved Staff Comme nts N None. It tem 2. Properties O ur corporate he w was completed i eadquarters is l in 2002. The pa located in Cam arcel on which marillo, Californ h our headquart nia where we o ters is located c own an approx can accommod ximately 87,600 date substantial 0 square foot f l expansion. facility that A As of January 28 ar re summarized 8, 2018, we ow in the followin wned or leased ng table: multiple prope erties. The loca ations and prim mary functions of significant p properties (1) Our Corporate He en ntered into among S gent and as swing l ag Headquarters have Semtech Corporat line lender and let been pledged to se ecure our obligatio tion, the guarantor rs party thereto, th r. tter of credit issuer ons under the Ame he lenders party th ended and Restated hereto and HSBC B d Credit Agreemen Bank USA, Nationa nt dated November al Association, as r 15, 2016 administrative In n addition to th Administrative o A ou ur future cash f he properties l offices at vario flows. Our leas listed in the ab ous locations in ses expire at va bove table, we n the U.S. and arious dates thr e also lease Sa internationally rough 2027. ales and Mark y under operati keting, Researc ing leases, non ch and Develo ne of which are opment, and e material to W We believe that eplacement and re our existing le d additional spa ased and owne ace will be ava ed space is mor ailable in the fu re than adequat uture on comme ate for our curre ercially reason ent operations, nable terms as c , and that suitab circumstances ble warrant. 33 T&L- BZ QLJeE 9(+NLLMH,J’ *t*W4W2*+ Q2ZM)YWY Q2 *RQ+ #22)tM ?W/1,* 12 c1,4 Leh^ t,W Q2Z1,/1,t*WY sp ,WUW,W2ZW *1 *RQ+ ‘*W4 Jg T&L- AZ PH,L 6eKL&a hH’NE+’%(L’ [1* t//MQZtsMWg JI 9#75 TT T&L- @Z Pe(FL& K+( 7LJH’&(e,&3’ !+--+, X)%H&a\ 7LEe&LM 6&+NFI+EML( Pe&&L(’ e,M T’’%L( 9%(NIe’L’ +K X)%H&a 6LN%(H&HL’ Pe(FL& T,K+(-e&H+, x),Q2S UQ+ZtM pWt,+ KeLE t2Y KeLFi 1), Z14412 +*1ZN *,tYWY 12 *RW [#>x#@ bM1stM >WMWZ* \t,NW* )2YW, *RW +p4s1M 8>\x#@ bM1stM >WMWZ* \t,NW*i SQ(Q2S WUUWZ* *1 tMM +*1ZN +/MQ*+ *R,1)SR *RW Yt*W RW,W1Ug WH’NeE aLe( L,MLM Se,%e(a C=\ CYD=; cQ,+* @)t,*W, >WZ12Y @)t,*W, ; cQ,+* @)t,*W, >WZ12Y @)t,*W, WZ),Q*QW+ cQ+ZtM \12*RfwWt, [1(W4sW, KeLF mLefJefLFhLLfKGfLFl xWZW4sW, KeLF mLLfKFfLFhLKfKIfLFl _t2)t,p KeLE mLKfKHfLFheLfKEfLEl <1*tM tZ*Q(Q*p Q2 *RW U1),*R .)t,*W, <1*tM [)4sW, 1U >Rt,W+ A),ZRt+WY #(W,tSW A,QZW AtQY /W, >Rt,W <1*tM [)4sW, 1U >Rt,W+ A),ZRt+WY t+ At,* 1U A)sMQZMp #221)2ZWY A,1S,t4 V 5 DJiFKI 5 JGiHFD 5 LJeiJeJ 5 V JJgDI JIgEI JIgLD V 5 DJiFKI 5 JGiHFD 5 LJeiJeJ #//,1qQ4t*W x1MMt, 9tM)W 1U >Rt,W+ WW *RW Q2U1,4t*Q12 +W* U1,*R Q2 At,* ‘‘‘i ‘*W4 LK 1U *RQ+ c1,4 Leh^g 6eEL’ +K 4,(LJH’&L(LM 6LN%(H&HL’ 7W YQY 21* 4tNW t2p +tMW+ 1U )2,WSQ+*W,WY +WZ),Q*QW+ Y),Q2S UQ+ZtM pWt, KeLEg 9L(K+(-e,NL V(e*I x#@ !14/1+Q*W ‘2YWqi t2Y mQQQl *RW ARQMtYWM/RQt >W4QZ12Y)Z*1, ‘2YWqg [1*W *Rt* RQ+*1,QZ +*1ZN /,QZW /W,U1,4t2ZW Q+ 21* 2WZW++t,QMp Q2YQZt*Q(W 1U U)*),W +*1ZN /,QZW /W,U1,4t2ZWg ,"D’ ,"’’ ,$D’ ,$’’ ,&D’ ,&’’ ,D’ ,< $’&" $’&E $’&D $’&/ $’&+ $’&* #1-A14! 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12 c1,4 Leh^g *t*W4W2*+ t2Y tZZ14/t2pQ2S 21*W+ Q2ZM)YWY Q2 ‘*W4 E 1U *RQ+ #22)tM ?W/1,* 12 c1,4 Leh^i t2Y *RW Z1,,W+/12YQ2S Q*W4+ Q2ZM)YWY Q2 1), #22)tM ?W/1,* 12 c1,4 Leh^ U1, UQ+ZtM pWt,+ KeLF t2Y KeLGg #MM UQ+ZtM pWt,+ /,W+W2*WY Z12+Q+*WY 1U UQU*ph*r1 rWWN+ WqZW/* U1, *RW UQ+ZtM pWt, W2YWY _t2)t,p JLi KeLG rRQZR Z12+Q+*WY 1U UQU*ph*R,WW rWWN+g B), /t+* ,W+)M*+ t,W 21* 2WZW++t,QMp Q2YQZt*Q(W 1U 1), U)*),W /W,U1,4t2ZWg !12+1MQYt*WY ‘2Z14W >*t*W4W2* xt*t mQ2 *R1)+t2Y+i WqZW/* /W, +Rt,W t41)2*+l OL& ’eEL’ !1+* 1U +tMW+ !1+* 1U +tMW+ h M1rW, 1U Z1+* 1, 4t,NW* r,Q*WhY1r2 V(+’’ *(+KH& :*L(e&H,J N+’&’ e,M Lb*L,’L’; >WMMQ2Si SW2W,tM t2Y tY4Q2Q+*,t*Q(W mKl A,1Y)Z* YW(WM1/4W2* t2Y W2SQ2WW,Q2S ‘2*t2SQsMW t41,*Qnt*Q12 ]1++ mStQ2l 12 YQ+/1+Q*Q12 1U s)+Q2W++ 1/W,t*Q12+ !Rt2SW+ Q2 *RW UtQ, (tM)W 1U Z12*Q2SW2* Wt,2h1)* 1sMQSt*Q12+ ‘2*t2SQsMW t++W* Q4/tQ,4W2*+ b11YrQMM Q4/tQ,4W2* <1*tM 1/W,t*Q2S Z1+*+ t2Y Wq/W2+W+ :*L(e&H,J H,N+-L _E+’’^ ‘2*W,W+* Wq/W2+W [12h1/W,t*Q2S mWq/W2+Wl Q2Z14Wi 2W* ‘2Z14W sWU1,W *tqW+ t2Y W.)Q*p Q2 2W* M1++W+ 1U W.)Q*p 4W*R1Y Q2(W+*4W2*+ A,1(Q+Q12 U1, *tqW+ [W* Q2Z14W sWU1,W W.)Q*p Q2 2W* M1++W+ 1U W.)Q*p 4W*R1Y Q2(W+*4W2*+ d.)Q*p Q2 2W* M1++W+ 1U W.)Q*p 4W*R1Y Q2(W+*4W2*+ OL& H,N+-L _E+’’^ Xe(,H,J’ _E+’’^ *L( ’Ie(L; "t+QZ xQM)*WY 0LHJI&LM e$L(eJL ,%-dL( +K ’Ie(L’ %’LM H, N+-*%&H,J Le(,H,J’ *L( ’Ie(L; "t+QZ xQM)*WY #2*QhYQM)*Q(W +Rt,W+ 21* Q2ZM)YWY Q2 *RW dA> ZtMZ)Mt*Q12+ cQ+ZtM wWt, d2YWY _t2)t,p KEi KeLE mLl _t2)t,p KDi KeLF _t2)t,p JLi KeLG mLl _t2)t,p KHi KeLH 5 HEFiEIF 5 HIIiKFK 5 IDeiKLD 5 HHFiEEH 5 KJHiEFG V JHLiDFL LIGiJeJ LeIiFDE KFiEGF JFH KLDiILe V JKIiEGK LJEiFeE LeKiHee KHiJeL mKHiHLJl LDFiLeD V KDJiLLe LIeiGFF LLJiFJF KHieHD V JiEDK mKLHl mLGiJGKl V V KEJiKJH GEiFJG mFiDGJl mDeKl V V KIeiFEL EIieEL mDiJeel mLiFKLl HDiEFL KJiLDL FJieGe LEiJDD V V KGJiLLL KDiDDD mFiELDl mLiEeLl KeiJFD EiEEK _t2)t,p KGi KeLI HDIiDFF KIIiFLD LHieIF JJHiKLL LKDiLLD LJFiIJF KDieeK V mGHIl JKiHJE LLGiGEG IIIiLKE mLeEiDLFl mLEiLFIl mLiJDel KKDieDJ V JKEiFDK LKEiILD LLDiJFL KHiFLE V LiJDL LLiGJG V KEGiHJH IKiKHF mHiDKFl LGH JGiIDH EiHIE mLKEiIELl JHiDEH JGiGEe HIiGGL LLiIDF KFiDIF mLGIiIGGl mKHIl V V V V JGiIKG 5 HIiGGL 5 LLiIDF 5 KFiDIF 5 mLGIiIGGl egHH 5 egHI 5 egEI 5 egEJ 5 egLE 5 egLF 5 egIK 5 egIL 5 mKgIIl mKgIIl 5 5 5 GGieKF GFiGeH IeK GHiIKF GGiLeD LiLLL GHiGHF GHiDGL KiHGD GFiLeE GFiGEH LiFLI GFiIFL GFiIFL LiKIH JF !12+1MQYt*WY "tMt2ZW >RWW* xt*t mQ2 *R1)+t2Y+l !t+R t2Y Zt+R W.)Q(tMW2*+ 71,NQ2S Zt/Q*tM <1*tM t++W*+ ]12S *W,4 YWs*i MW++ Z),,W2* [12hZ),,W2* MQtsQMQ*QW+ <1*tM +*1ZNR1MYW,+: W.)Q*p _t2)t,p KEi KeLE mLl _t2)t,p KDi KeLF _t2)t,p JLi KeLG mLl _t2)t,p KHi KeLH 5 JeFiDKJ 5 KDFiLJI 5 KLLiELe 5 KJeiJKE 5 JJHieKI LieEHiFFG KLLiLLI KDIiHHH GGHieLJ JLHiIHJ LieLLiHIK KKGiHKI KEJiJeI GeHiKGJ KJFiJJI DLLiHLF KJDiLFF KFDiHFD HKEieHL KEEiGIF DKDiIJL KJIiFIG KFeieJK HHLiJHE _t2)t,p KGi KeLI KIGiEGE KEKiFeG DIEiDIe KFJiKDJ JeKiKeF HJHiEIJ (1)The Company acquired AptoVision on July 1, 2017 and Triune on March 4, 2015. Refer to Note 3 to our Consolidated Financial Statements included in Item 8 of this report. (2) The Company has re-aligned resources and infrastructure, resulting in restructuring expense of $6.3 million, $2.3 million and $4.5 million in fiscal years 2018, 2017 and 2016, respectively, included in selling, general and administrative. JE T&L- >Z Pe,eJL-L,&3’ hH’N%’’H+, e,M #,eEa’H’ +K WH,e,NHeE !+,MH&H+, e,M 7L’%E&’ +K :*L(e&H+,’ The following discussion and analysis of our financial condition and operating results should be read in conjunction with Item 6 "Selected Consolidated Financial Data" and our Consolidated Financial Statements and related Notes included elsewhere in this Annual Report on Form 10-K. This Annual Report on Form 10-K contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on our current expectations, estimates and projections about our operations, industry, financial condition, performance, operating results, and liquidity. Forward-looking statements are statements other than historical information or statements of current condition and relate to matters such as future financial performance, future operational performance, the anticipated impact of specific items on future earnings, and our plans, objectives and expectations. Statements containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "estimate," "should," "will," "designed to," "projections," or "business outlook," or other similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and events to differ materially from those projected. Please see Special Note Regarding Forward- Looking and Cautionary Statements elsewhere in this Annual Report on Form 10-K for potential factors that could cause actual results to differ materially from those in the forward-looking statements. 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OL& ’eEL’ !1+* 1U +tMW+ V(+’’ *(+KH& :*L(e&H,J N+’&’ e,M Lb*L,’L’; >WMMQ2Si SW2W,tM t2Y tY4Q2Q+*,t*Q(W A,1Y)Z* YW(WM1/4W2* t2Y W2SQ2WW,Q2S ‘2*t2SQsMW t41,*Qnt*Q12 ]1++ mStQ2l 12 YQ+/1+Q*Q12 1U s)+Q2W++ 1/W,t*Q12+ !Rt2SW+ Q2 *RW UtQ, (tM)W 1U Z12*Q2SW2* Wt,2h1)* 1sMQSt*Q12+ <1*tM 1/W,t*Q2S Z1+*+ t2Y Wq/W2+W+ :*L(e&H,J H,N+-L ‘2*W,W+* Wq/W2+Wi 2W* [12h1/W,t*Q2S Wq/W2+Wi 2W* ‘2Z14W sWU1,W *tqW+ t2Y W.)Q*p Q2 2W* M1++W+ 1U W.)Q*p 4W*R1Y Q2(W+*4W2*+ A,1(Q+Q12 U1, *tqW+ [W* Q2Z14W sWU1,W W.)Q*p Q2 2W* M1++W+ 1U W.)Q*p 4W*R1Y Q2(W+*4W2*+ d.)Q*p Q2 2W* M1++W+ 1U W.)Q*p 4W*R1Y Q2(W+*4W2*+ OL& H,N+-L Xe(,H,J’ *L( ’Ie(L; "t+QZ xQM)*WY 0LHJI&LM e$L(eJL ,%-dL( +K ’Ie(L’ %’LM H, N+-*%&H,J Le(,H,J’ *L( ’Ie(L; "t+QZ xQM)*WY 5 5 5 5 HEFiEIF 5 KJHiEFG JHLiDFL HIIiKFK 5 KLDiILe JKIiEGK LIGiJeJ LeIiFDE KFiEGF JFH JiEDK KEJiKJH GEiFJG mFiDGJl mDeKl HDiEFL KJiLDL JGiGEe mKHIl LJEiFeE LeKiHee KHiJeL mKHiHLJl mKLHl KIeiFEL EIieEL mDiJeel mLiFKLl FJieGe LEiJDD HIiGGL V JGiIKG 5 HIiGGL 5 egHH 5 egHI 5 egEI 5 egEJ 5 GGieKF GFiGeH GHiIKF GGiLeD The accompanying notes are an integral part of these consolidated financial statements. IDeiKLD LDFiLeD KDJiLLe LIeiGFF LLJiFJF KHieHD V mLGiJGKl KGJiLLL KDiDDD mFiELDl mLiEeLl KeiJFD EiEEK LLiIDF V LLiIDF egLE egLF GHiGHF GHiDGL HD >d\;">‘x‘#?‘d> !B[>B]‘x#<# Bc !B\A?dad[>‘9d ‘[!B\d mQ2 *R1)+t2Y+l [W* Q2Z14W B*RW, Z14/,WRW2+Q(W Q2Z14Wi 2W*C ;2,WtMQnWY StQ2 12 U1,WQS2 Z),,W2Zp Zt+R UM1r RWYSW+ ?WtMQnWY StQ2 12 U1,WQS2 Z),,W2Zp Zt+R UM1r RWYSW+ !Rt2SW Q2 )2,WtMQnWY StQ2 12 Q2*W,W+* ,t*W Zt/ !Rt2SW Q2 W4/M1pWW sW2WUQ* /Mt2+ B*RW, ZRt2SW+ *1 Z14/,WRW2+Q(W Q2Z14W B*RW, Z14/,WRW2+Q(W Q2Z14W mM1++li 2W* !14/,WRW2+Q(W Q2Z14W WH’NeE gLe( X,MLM Se,%e(a C=\ CYD= Se,%e(a C<\ CYD> Se,%e(a BD\ CYD? 5 JGiIKG 5 HIiGGL 5 LLiIDF DIK mLiKJKl V JEI V DI HKK mKJKl IE mKiILIl LKD mLiDIFl V V IDe V V IDe 5 JGiHKe 5 HKiFLI 5 LLiDEF The accompanying notes are an integral part of these consolidated financial statements. Ge >d\;">‘x‘#?‘d> !B[>B]‘x#add<> #> Bc _#[;#?w KEi KeLE #[x _#[;#?w KDi KeLF mQ2 *R1)+t2Y+i WqZW/* /W, +Rt,W t41)2*+l #’’L&’ !),,W2* t++W*+C !t+R t2Y Zt+R W.)Q(tMW2*+ #ZZ1)2*+ ,WZWQ(tsMWi MW++ tMM1rt2ZW+ 1U 5DieED t2Y 5EiKJei ,W+/WZ*Q(WMp ‘2(W2*1,QW+ A,W/tQY *tqW+ B*RW, Z),,W2* t++W*+ <1*tM Z),,W2* t++W*+ [12hZ),,W2* t++W*+C A,1/W,*pi /Mt2* t2Y W.)Q/4W2*i 2W* 1U tZZ)4)Mt*WY YW/,WZQt*Q12 1U 5LFDiGeI t2Y 5LGLiKJGi ,W+/WZ*Q(WMp xWUW,,WY *tq t++W*+ b11YrQMM B*RW, Q2*t2SQsMW t++W*+i 2W* B*RW, t++W*+ 5:5#Q #66X56 QHedHEH&HL’ e,M 6&+NFI+EML(’3 X)%H&a !),,W2* MQtsQMQ*QW+C #ZZ1)2*+ /tptsMW #ZZ,)WY MQtsQMQ*QW+ xWUW,,WY ,W(W2)W !),,W2* /1,*Q12 h M12S *W,4 YWs* <1*tM Z),,W2* MQtsQMQ*QW+ [12hZ),,W2* MQtsQMQ*QW+C xWUW,,WY *tq MQtsQMQ*QW+ ]12S *W,4 YWs*i MW++ Z),,W2* /1,*Q12 B*RW, M12Sh*W,4 MQtsQMQ*QW+ !144Q*4W2*+ t2Y Z12*Q2SW2ZQW+ m[1*W LIl >*1ZNR1MYW,+: W.)Q*pC Se,%e(a C=\ CYD= Se,%e(a C<\ CYD> 5 JeFiDKJ 5 KDFiLJI HJiLEJ FLieGF LLiEeD LFiKHe HLiIIL GHiEFK HiHGJ LEiILE IGLiKJK IJEiIKE . 5 LKIiHEG IiKJG JILiEDF GeiKeF DJiGLE LeEiDLe HiIDJ JKDiFeJ GLiFFJ GFiKJH D\Y=@\>>? . D\YDD\@AC JFiKeE 5 GeiEJK LKiFHE LHiILe LKGiKeE LIiGEK KLLiLLI GEiFHD ILiDGe HIiHKI LKieHD LIiIJK LKKiDFH GiEEL KKGiHKI IDiEDD !14412 +*1ZNi 5egeL /t, (tM)Wi KHeieeeieee +Rt,W+ t)*R1,QnWYi FEiLJGiLII Q++)WY t2Y GGiKEeiLKD 1)*+*t2YQ2S t2Y FEiLJGiLII Q++)WY t2Y GHiFDJieEJ 1)*+*t2YQ2Si ,W+/WZ*Q(WMp <,Wt+),p +*1ZNi t* Z1+*i LLiEHGieLH +Rt,W+ t2Y LKiJIJieGL +Rt,W+i ,W+/WZ*Q(WMp #YYQ*Q12tM /tQYhQ2 Zt/Q*tM ?W*tQ2WY Wt,2Q2S+ #ZZ)4)Mt*WY 1*RW, Z14/,WRW2+Q(W mM1++l Q2Z14W <1*tM +*1ZNR1MYW,+: W.)Q*p FEH FEH mKHLiDFIl mKHJiLeFl ILHieHG HeKiJIG mLiKeel GGHieLJ JDeiDJE IGFiDIL mLiKDIl GeHiKGJ 5:5#Q QT#"TQT5TX6 #Oh 65:!RU:QhX763 X84T5g . D\Y=@\>>? . D\YDD\@AC The accompanying notes are an integral part of these consolidated financial statements. GL >d\;">‘x‘#?‘d> !B[>B]‘x#<# Bc >: d@;‘*1ZN #41)2* #YYQ*Q12tM AtQYhQ2 !t/Q*tM ?W*tQ2WY dt,2Q2S+ <,Wt+),p >*1ZNi t* !1+* #ZZ)4)Mt*WY B*RW, !14/,WRW2+Q( W ‘2Z14W m]1++l >*1ZNR1MYW,+: d.)Q*p >=@ . V B>D\@=B . LLiIDF V V V V V V V KKiFFE V mLIiFIIl mLHIl JK V V V V V V >=@ . V B><\@Y= . V ADB\C=Y . HIiGGL V V V V V V KGiKID V mLIiELDl V V V V V V _CCC\@^ . V V V mLieeHl LIieeJ Fe D?B . V IDe V V V V V @@D\B@= LLiIDF IDe KKiFFE mHFiJLLl mGJDl mLHIl JK ?@B . V @C=\Y@D HIiGGL mLiDIFl V V V V mLiDIFl KGiKID mLieeHl mELGl Fe "eEe,NL e& Se,%e(a C@\ CYD@ [W* Q2Z14W B*RW, Z14/,WRW2+Q(W Q2Z14W >*1ZNhst+WY Z14/W2+t*Q12 [)4sW, 1U >Rt,W+ B)*+*t2YQ2S ??\=DC\*1ZNhst+WY Z14/W2+t*Q12 ?W/),ZRt+W 1U 1)*+*t2YQ2S <,Wt+),p +*1ZN ,WQ++)WY B*RW, "eEe,NL e& Se,%e(a C<\ CYD> !)4)Mt*Q(WhWUUWZ* tYP)+*4W2* *1 sWSQ22Q2S stMt2ZW U,14 tY1/*Q12 [W* Q2Z14W B*RW, Z14/,WRW2+Q(W Q2Z14W >*1ZNhst+WY Z14/W2+t*Q12 ?W/),ZRt+W 1U 1)*+*t2YQ2S <,Wt+),p +*1ZN ,WQ++)WY ?@\>=@ . B\^ . _D\C=@ . AD@\Y@? . @YC\BA? . _C@D\<>A^ . _D\CYY^ . ??@\YDB The accompanying notes are an integral part of these consolidated financial statements. GK >d\;">‘x‘#?‘d> !B[>B]‘x#<# Bc !#>a c]B7> mQ2 *R1)+t2Y+l !t+R UM1r+ U,14 1/W,t*Q2S tZ*Q(Q*QW+C [W* Q2Z14W Adjustments to reconcile net income to net cash provided by operating 5 JGiIKG 5 HIiGGL 5 LLiIDF WH’NeE gLe( X,MLM Se,%e(a C=\ Se,%e(a C<\ Se,%e(a BD\ CYD? xW/,WZQt*Q12 t2Y t41,*Qnt*Q12 ‘4/tQ,4W2* 1U t++W*+ #ZZ,W*Q12 1U YWUW,,WY UQ2t2ZQ2S Z1+*+ t2Y YWs* YQ+Z1)2* 7,Q*Wh1UU 1U YWUW,,WY UQ2t2ZQ2S Z1+*+ t2Y YWs* YQ+Z1)2* xWUW,,WY Q2Z14W *tqW+ >Rt,Whst+WY Z14/W2+t*Q12 t2Y rt,,t2* Z1+*+ ]1++ mStQ2l 12 YQ+/1+Q*Q12 1U s)+Q2W++ 1/W,t*Q12+ t2Y t++W*+ m[1*W Ll dt,2h1)* MQtsQMQ*QW+ d.)Q*p Q2 2W* M1++W+ 1U W.)Q*p 4W*R1Y Q2(W+*4W2*+ btQ2 U,14 Z12(W,*QsMW YWs* +W**MW4W2* !12*Q2SW2ZQW+ !1,/1,t*W 1r2WY MQUW Q2+),t2ZWi 2W* Changes in assets and liabilities: #ZZ1)2*+ ,WZWQ(tsMWi 2W* ‘2(W2*1,QW+ B*RW, t++W*+ #ZZ1)2*+ /tptsMW #ZZ,)WY MQtsQMQ*QW+ xWUW,,WY ,W(W2)W ‘2Z14W *tqW+ /tptsMW B*RW, MQtsQMQ*QW+ [W* Zt+R /,1(QYWY sp 1/W,t*Q2S tZ*Q(Q*QW+ !t+R UM1r+ U,14 Q2(W+*Q2S tZ*Q(Q*QW+C A,1ZWWY+ U,14 Z12(W,*QsMW YWs* +W**MW4W2* A,1ZWWY+ U,14 +tMW+ 1U /,1/W,*pi /Mt2* t2Y W.)Q/4W2* A),ZRt+W 1U /,1/W,*pi /Mt2* t2Y W.)Q/4W2* A),ZRt+W 1U Q2(W+*4W2*+ #Z.)Q+Q*Q12+i 2W* 1U Zt+R tZ.)Q,WY A,1ZWWY+ U,14 YQ+/1+Q*Q12 1U s)+Q2W++ 1/W,t*Q12+ A,1ZWWY+ U,14 +tMW 1U Q2(W+*4W2*+ [W* Zt+R )+WY Q2 Q2(W+*Q2S tZ*Q(Q*QW+ !t+R UM1r+ U,14 UQ2t2ZQ2S tZ*Q(Q*QW+C A,1ZWWY+ U,14 *W,4 M1t2+ Atp4W2*+ 1U *W,4 M1t2+ A,1ZWWY+ U,14 ,W(1M(Q2S MQ2W 1U Z,WYQ* Atp4W2*+ 1U ,W(1M(Q2S MQ2W 1U Z,WYQ* xWUW,,WY UQ2t2ZQ2S Z1+*+ Atp4W2* U1, W4/M1pWW +Rt,Whst+WY Z14/W2+t*Q12 /tp,1MM *tqW+ A,1ZWWY+ U,14 WqW,ZQ+W 1U +*1ZN 1/*Q12+ ?W/),ZRt+W 1U 1)*+*t2YQ2S Z14412 +*1ZN [W* Zt+R )+WY Q2 UQ2t2ZQ2S tZ*Q(Q*QW+ [W* Q2Z,Wt+W mYWZ,Wt+Wl Q2 Zt+R t2Y Zt+R W.)Q(tMW2*+ !t+R t2Y Zt+R W.)Q(tMW2*+ t* sWSQ22Q2S 1U /W,Q1Y !t+R t2Y Zt+R W.)Q(tMW2*+ t* W2Y 1U /W,Q1Y 6%**EL-L,&eE MH’NE+’%(L +K Ne’I KE+c H,K+(-e&H+, ‘2Z14W *tqW+ /tQY ‘2*W,W+* /tQY O+,[Ne’I H&L-’ !t/Q*tM Wq/W2YQ*),W+ Q2 tZZ1)2*+ /tptsMW !12(W,*QsMW YWs* IEiDDD IiKHe HGE V LHiKJK IFiDJG KFG JiEDK KHI mIiKFHl V LiGeL mLiIHJl mHiHLHl mHiDHFl mHiJeGl KiIFI mKGl mLHiFLEl mLKiLFJl LLLiIEH HiFee LED mJHiIGLl mLEiGGHl mLFiGLDl V V mGHiEHGl V mLHieeel V V V mLLiGFLl GiGEe mLIiEIDl mJIiEIel LeiFED KDFiLJI IFieHF V GKL HID KiLEH JeiEKE mKHiIEDl mKLHl V V mLiHLEl FFe mFiIeJl mLiDHDl mFiHLGl JiLeL LeiHEK IiHJJ KiGLE IiKeF IEiDJK V LiIGD V mLieLKl KeiIGE KJ mLGiJGKl V V KiEHH mIKel KHiJHI LeiKGK mGHFl IiDEe mLKiDIHl KiFEe KiGLL KiKIL LLFiGLK LeKieFG V IE mJKiDKel mLJiLDEl V JKieee HHH mLJiHLHl LHeieee mEeiEFHl DFieee mLELieeel mKiLLel mGiHGKl HiFFD mLieeHl mLEiFFJl EHiJKI KLLiELe V V mLJieKGl mLIiGJel mJDiLFLl V V mGGiEKFl JHieee mJeiFHel V V V mGiHLJl HiEeF mHFiJLLl mHJiFGFl mLEiHLEl KJeiJKE KLLiELe FiDKI HiFJK V V 5 5 5 5 5 JeFiDKJ 5 KDFiLJI 5 JLieLJ 5 GiJIL 5 JiFED 5 V 5 LeiHeJ 5 GiIDK 5 JiJFJ 5 LiIKH 5 The accompanying notes are an integral part of these consolidated financial statements. GJ >d\;">‘x‘#?‘d> [B B]‘x#<# O+&L D; :(Je,H‘e&H+, e,M "e’H’ +K 9(L’L,&e&H+, >W4*WZR !1,/1,t*Q12 m*1SW*RW, rQ*R Q*+ Z12+1MQYt*WY +)s+QYQt,QW+i *RW 8!14/t2p8 1, 8>W4*WZR8l Q+ t SM1stM +)//MQW, 1U t2tM1Si 4QqWYh+QS2tM +W4QZ12Y)Z*1,+ t2Y tY(t2ZWY tMS1,Q*R4+g )2Ytp Q2 _t2)t,pg *t*W+ mTb##A=lg #MM Q2*W,Z14/t2p stMt2ZW+ Rt(W sWW2 WMQ4Q2t*WYg *t*W4W2*+ 1U ‘2Z14W t,W ,WUW,,WY *1 RW,WQ2 t+ *RW 8>*t*W4W2*+ 1U ‘2Z14Wg8 RWW*+ t,W ,WUW,,WY *1 RW,WQ2 t+ *RW 8"tMt2ZW >RWW*+8 t2Y !12+1MQYt*WY >*t*W4W2*+ 1U !t+R cM1r+ t+ *RW 8>*t*W4W2*+ 1U !t+R cM1r+g8 Segment Information W4QZ12Y)Z*1, A,1Y)Z*+ b,1)/g p+*W4+ ‘221(t*Q12 b,1)/ m+R1r2 t+ 8#MM 1*RW,+8li Z1)MY 21* sW tSS,WSt*WY rQ*R *RW 1*RW, 1/W,t*Q2S +WS4W2*+ t2Y YQY 21* 4WW* *RW Z,Q*W,Qt U1, t +W/t,t*W ,W/1,*tsMW +WS4W2* t+ YWUQ2WY sp *RW S)QYt2ZW ,WSt,YQ2S +WS4W2* YQ+ZM1+),Wg #+ t ,W+)M*i *RW UQ2t2ZQtM tZ*Q(Q*p t++1ZQt*WY rQ*R *RW >p+*W4+ ‘221(t*Q12 b,1)/ rt+ ,W/1,*WY +W/t,t*WMp U,14 *RW !14/t2po+ >W4QZ12Y)Z*1, A,1Y)Z*+ b,1)/g 21rs)+R ‘2*WMMWZ*)tM A,1/W,*p m8>21rs)+R ‘A8l s)+Q2W++ m/,W(Q1)+Mp /t,* 1U *RW !14/t2p:+ >p+*W4+ ‘221(t*Q12 b,1)/l *1 ?t4s)+ ‘2Zg m8?t4s)+8l U1, t /),ZRt+W /,QZW 1U 5JKge 4QMMQ12 Q2 Zt+R tM12S rQ*R *RW 1//1,*)2Q*p *1 ,WZWQ(W tYYQ*Q12tM /tp4W2*+ U,14 ?t4s)+ *R,1)SR KeKK st+WY )/12 t /W,ZW2*tSW 1U +tMW+ sp ?t4s)+ 1U 2Wr /,1Y)Z*+ Wq/WZ*WY *1 sW YW(WM1/WY sp ?t4s)+ U,14 *RW YQ+/1+WY t++W*+g p+*W4+ ‘221(t*Q12 b,1)/ 1, t2 8#MM 1*RW,+8 Zt*WS1,pi ,W+)M*Q2S Q2 U1), 1/W,t*Q2S +WS4W2*+ *Rt* tSS,WSt*W Q2*1 12W ,W/1,*tsMW +WS4W2*i *RW >W4QZ12Y)Z*1, A,1Y)Z*+ b,1)/g GI Use of Estimates 8l t2Y ,W/1,*+ *RW+W Q2(W+*4W2*+ t* UtQ, (tM)Wi rQ*R )2,WtMQnWY StQ2+ t2Y M1++W+i 2W* 1U *tqi ,WZ1,YWY Q2 tZZ)4)Mt*WY 1*RW, Z14/,WRW2+Q(W Q2Z14W mM1++lg ?WtMQnWY StQ2+ 1, M1++W+ 12 #c> Q2(W+*4W2*+ t,W ,WZ1,YWY Q2 8‘2*W,W+* Q2Z14W t2Y 1*RW, mWq/W2+Wl Q2Z14Wi 2W*8 Q2 *RW >*t*W4W2*+ 1U ‘2Z14Wg RWW*+g >)s+*t2*QtMMpi tMM 1U *RW+W Q2(W+*4W2*+ t,W Zt,,QWY t* Z1+* sWZt)+W *RW !14/t2p Y1W+ 21* Rt(W *RW tsQMQ*p *1 WqW,ZQ+W +QS2QUQZt2* Q2UM)W2ZW 1(W, *RW Z14/t2pg tMW+ ,Wst*W tMM1rt2ZW >tMW+ ,W*),2 tMM1rt2ZW B*RW, tMM1rt2ZW+ <1*tM _t2)t,p KEi KeLE _t2)t,p KDi KeLF 5 5 mKiFeel 5 mKiGJIl mKieLEl mLiFJFl mDieEDl 5 mKiGDGl mKiHFLl mLiFDHl mLiLGEl mEiKJel GG Inventories ‘2(W2*1,QW+ t,W +*t*WY t* M1rW, 1U Z1+* 1, 4t,NW* t2Y Z12+Q+* 1U 4t*W,QtM+i Mts1, t2Y 1(W,RWtYg *t*W4W2*+ 1U ‘2Z14W Q2 +)s+W.)W2* /W,Q1Y+% t2Y ZRt2SW+ Q2 YWUW,,WY *tq t++W* (tM)t*Q12 tMM1rt2ZW+ t2Y Q2Z14W *tq )2ZW,*tQ2*QW+ tU*W, *RW tZ.)Q+Q*Q12 Yt*W SW2W,tMMp tUUWZ* Q2Z14W *tq Wq/W2+Wg #MM ZRt2SW+ *Rt* Y1 21* .)tMQUp t+ 4Wt+),W4W2* /W,Q1Y tYP)+*4W2*+ t,W Q2ZM)YWY Q2 Z),,W2* /W,Q1Y Wt,2Q2S+g >QS2QUQZt2* P)YS4W2* Q+ ,W.)Q,WY *1 YW*W,4Q2W *RW W+*Q4t*WY UtQ, (tM)W U1, t++W*+ t2Y MQtsQMQ*QW+ tZ.)Q,WY t2Y *1 t++QS2 *RWQ, ,W+/WZ*Q(W )+WU)M MQ(W+g *t2Yt,Y+ "1t,Y m8c#>"8l #ZZ1)2*Q2S >*t2Yt,Y+ !1YQUQZt*Q12 m8#>!8l <1/QZ ELei 8!12+1MQYt*Q128g # Z12*,1MMQ2S UQ2t2ZQtM Q2*W,W+* rQMM Rt(W s1*R 1U *RW U1MM1rQ2S ZRt,tZ*W,Q+*QZ+C mQl *RW /1rW, *1 YQ,WZ* *RW tZ*Q(Q*QW+ 1U t 9‘d *Rt* 41+* +QS2QUQZt2*Mp Q4/tZ* *RW 9‘d:+ WZ1214QZ /W,U1,4t2ZWi t2Y mQQl *RW 1sMQSt*Q12 *1 ts+1,s M1++W+ 1U *RW 9‘d *Rt* Z1)MY /1*W2*QtMMp sW +QS2QUQZt2* *1 *RW 9‘d 1, *RW ,QSR* *1 ,WZWQ(W sW2WUQ*+ U,14 *RW 9‘d *Rt* Z1)MY /1*W2*QtMMp sW +QS2QUQZt2* *1 *RW 9‘dg ! 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Rt,W+ 7WQSR*WY #(W,tSW b,t2* xt*W ctQ, 9tM)W ?W+*,QZ*WY >*1ZN ;2Q*+i >*1ZN b,t2*+i t2Y >*1ZN ;2Q*+ [12(W+*WY t* _t2)t,p KDi KeLF b,t2*WY 9W+*WY c1,UWQ*WY [12(W+*WY t* _t2)t,p KEi KeLE KiLIL 5 DEJ 5 mFDKl 5 mLHFl 5 KiLFH 5 KKgHI JGgDG KJgIL KFgeJ KEgIK AW,U1,4t2ZW >Rt,W+ 7WQSR*WY #(W,tSW b,t2* xt*W ctQ, 9tM)W >Rt,W+ JEJ 5 KLG 5 mIKl 5 mLDIl 5 JGJ 5 KKgJL JDgHH JEgeL JegeF KGgHE RWW*+g Restricted Stock Units, Stock Settled, Non-Employee Directors. #+ t ,W+)M* 1U *RW _)2W KeLH ZRt2SW+ *1 *RW !14/t2p:+ YQ,WZ*1, Z14/W2+t*Q12 /,1S,t4i sWSQ22Q2S Q2 _)Mp KeLHi *RW !14/t2p sWSt2 S,t2*Q2S 2Wr ,W+*,QZ*WY +*1ZN )2Q*+ *1 212h W4/M1pWW xQ,WZ*1,+ rRQZR t,W Wq/WZ*WY *1 sW +W**MWY rQ*R +Rt,W+ 1U *RW !14/t2po+ Z14412 +*1ZN t* *RW *Q4W 1U (W+*Q2Sg Rt,W+8l 1U *RW !14/t2p:+ Z14412 +*1ZNi /t, (tM)W 5egeL /W, +Rt,Wi ,W/,W+W2*Q2S t *1*tM 1U 5Jege 4QMMQ12 1U Z14412 +*1ZN st+WY 12 *RW t(W,tSW ZM1+Q2S /,QZW 1(W, *RWLeh*,tYQ2S Ytp /W,Q1Y W2YWY BZ*1sW, Ii KeLGi t* t2 WqW,ZQ+W /,QZW 1U 5egeL /W, 7t,,t2* >Rt,Wg Rt,W+ Q++)WY )/12 WqW,ZQ+W *1 ,WUMWZ* 2W* +W**MW4W2* 1U *RW WqW,ZQ+W /,QZWg !14Zt+* 4tp tM+1 ,W.)W+* Zt+R +W**MW4W2* 1U *RW 7t,,t2* )/12 WqW,ZQ+W Q2 MQW) 1U *RW Q++)t2ZW 1U 7t,,t2* >Rt,W+% R1rW(W,i +)ZR Zt+R +W**MW4W2* Q+ t* *RW +1MW t2Y ts+1M)*W YQ+Z,W*Q12 1U *RW !14/t2pg Rt,W+ t,W +)sPWZ* *1 Z)+*14t,p tYP)+*4W2* /,1(Q+Q12+ U1, +*1ZN +/MQ*i ,WZMt++QUQZt*Q12i ,W1,St2Qnt*Q12i Z12+1MQYt*Q12i 4W,SW,i t2Y +Q4QMt, *,t2+tZ*Q12+g *t*W+i st+WY 12 *RW !14/t2p:+ ]1?t$ YW(QZW+ t2Y rQ,WMW++ ,tYQ1 U,W.)W2Zp *WZR21M1Spg Rt,W+ Q++)WY *1 !14Zt+* Q2 UQ+ZtM pWt, KeLFi rRQZR t41)2*WY *1 DFE +Rt,W+ t* t rWQSR*WY t(W,tSW S,t2* Yt*W UtQ, (tM)W 1U 5KFgFIi RtY tSS,WSt*W )2,WZ1S2QnWY Z14/W2+t*Q12 1U 5KegG 4QMMQ12 t+ 1U _t2)t,p KEi KeLEg x),Q2S UQ+ZtM pWt, KeLEi LeDieee +Rt,W+ )2YW,MpQ2S *RW 7t,,t2* (W+*WY t2Y +)ZR /1,*Q12 1U *RW 7t,,t2* U1, *RW )2YW,MpQ2S LeDieee +Rt,W+ Rt+ sWW2 WqW,ZQ+WYg Rt,Wi *RW !14/t2p (tM)WY *RW trt,Y+ )+Q2S *RW ZM1+Q2S /,QZW 1U *RW !14/t2p:+ +*1ZN 12 *RW 4Wt+),W4W2* Yt*W U1, +Rt,W+ *Rt* Rt(W (W+*WY t2Y *RW UtQ, (tM)W 12 *RW "tMt2ZW >RWW*+ Yt*W U1, *RW 1*RW, +Rt,W+g DK O+&L DC; T,N+-L 5ebL’ *t*W c1,WQS2 >)s*1*tM xWUW,,WY *tq /,1(Q+Q12 msW2WUQ*l cWYW,tM >*t*W c1,WQS2 >)s*1*tM A,1(Q+Q12 U1, *tqW+ cQ+ZtM wWt, d2YWY _t2)t,p KEi KeLE _t2)t,p KDi KeLF _t2)t,p JLi KeLG mLIiIKLl 5 FIiKDK HDiEFL 5 mLDiGeKl 5 DKiGGK FJieGe 5 mHiGJGl KGieLH KeiJFD _t2)t,p KEi KeLE _t2)t,p KDi KeLF _t2)t,p JLi KeLG cQ+ZtM wWt, d2YWY KiLeE 5 V LJiIIK LHiHHe FiFeL V mGel FiGIL KJiLDL 5 V 5 V LGieJI LGieJI LeF V KiKHE KiJGH LEiJDD 5 V V EiFeD EiFeD GiGFD mDGl mGiILel LFJ EiEEK 5 5 5 5 *t*W Q2Z14W *tqW+i 2W* 1U UWYW,tM sW2WUQ* c1,WQS2 *tqW+ t* ,t*W+ MW++ *Rt2 UWYW,tM ,t*W+ *tq ,WU1,4 mLl B*RW, A,1(Q+Q12 U1, *tqW+ 5 5 KeiKKK 5 mLHDl mEiGDEl mJiKFEl mILiDLLl V LiHJE KDD mEiJJJl KGI V V V GHiIIK mKiLDHl KJiLDL 5 KHiHFL 5 V mLKieFIl mKiEGIl HiHFE mKiDFEl LieIF KGG KiHHJ IIE V V V V EHK LEiJDD 5 FiLJJ mFl mGKl mJiHDEl LiEIF V LieeD KFG KiHKD KE HiGFe mHiGFel JJI V mGeFl EiEEK (1) Impact of US tax reform includes $2.6 million of benefit from remeasurement of deferreds, $0.4 million of expense due to change in permanent reinvestment assertion net of foreign tax credits generated, and $66.5 million of expense due to the estimated impact of the transition tax, net of foreign tax credits generated. The transition tax, net of previously fully valued deferreds results in a total estimated current income tax payable of $1.1 million. 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’LJHei t+ #Y1/*WY A),+)t2* *1 >WZ*Q12 DeG 1U *RW >t,st2W+h BqMWp #Z* 1U KeeK mdqRQsQ* JKgK Q+ sWQ2S U),2Q+RWY t2Y +RtMM 21* sW YWW4WY 8UQMWY8l cQMWY RW,WrQ*R cQMWY RW,WrQ*R c),2Q+RWY RW,WrQ*R c),2Q+RWY RW,WrQ*R LeLg‘[> 6"?] ‘2+*t2ZW x1Z)4W2* cQMWY RW,WrQ*R LeLg>!a 6"?] ZRW4t x1Z)4W2* cQMWY RW,WrQ*R LeLg!#] 6"?] WZ*Q12 LJ 1, LHmYl 1U *RW >WZ),Q*QW+ dqZRt2SW #Z* 1U LDJIi *RW ,WSQ+*,t2* Rt+ Y)Mp Zt)+WY *RQ+ ,W/1,* *1 sW +QS2WY 12 Q*+ sWRtMU sp *RW )2YW,+QS2WYi *RW,W)2*1 Y)Mp t)*R1,QnWYg 6TVO#547X6 xt*WC \t,ZR KKi KeLE >W4*WZR !1,/1,t*Q12 f+f \1Rt2 ?g \tRW+rt,t2 \1Rt2 ?g \tRW+rt,t2 A,W+QYW2* t2Y !RQWU dqWZ)*Q(W BUUQZW, LLD A),+)t2* *1 *RW ,W.)Q,W4W2*+ 1U *RW >WZ),Q*QW+ dqZRt2SW #Z* 1U LDJIi *RQ+ ,W/1,* Rt+ sWW2 +QS2WY sWM1r sp *RW U1MM1rQ2S /W,+12+ 12 sWRtMU 1U *RW ?WSQ+*,t2* t2Y Q2 *RW Zt/tZQ*QW+ t2Y 12 *RW Yt*W+ Q2YQZt*WYg 6TVO#547X6 xt*WC \t,ZR KKi KeLE xt*WC \t,ZR KKi KeLE xt*WC \t,ZR KKi KeLE xt*WC \t,ZR KKi KeLE xt*WC \t,ZR KKi KeLE xt*WC \t,ZR KKi KeLE xt*WC \t,ZR KKi KeLE xt*WC \t,ZR KKi KeLE xt*WC \t,ZR KKi KeLE xt*WC \t,ZR KKi KeLE f+f \1Rt2 ?g \tRW+rt,t2 \1Rt2 ?g \tRW+rt,t2 A,W+QYW2* t2Y !RQWU dqWZ)*Q(W BUUQZW, xQ,WZ*1, f+f d4WNt [g !R)Nr) d4WNt [g !R)Nr) dqWZ)*Q(W 9QZW A,W+QYW2* t2Y !RQWU cQ2t2ZQtM BUUQZW, mA,Q2ZQ/tM #ZZ1)2*Q2S t2Y cQ2t2ZQtM BUUQZW,l f+f ?1ZNWMM [g at2NQ2 ?1ZNWMM [g at2NQ2 !RtQ,4t2 1U *RW "1t,Y f+f bMW2 \g #2*MW bMW2 \g #2*MW xQ,WZ*1, f+f _t4W+ Ag "),,t _t4W+ Ag "),,t xQ,WZ*1, f+f ",)ZW !g dYrt,Y+ ",)ZW !g dYrt,Y+ xQ,WZ*1, f+f wW _t2W ]Q wW _t2W ]Q xQ,WZ*1, f+f _t4W+ t2*1,1 !t,4WM1 _g >t2*1,1 xQ,WZ*1, f+f >pM(Qt >)44W,+ >pM(Qt >)44W,+ xQ,WZ*1, LKe SEMTECH LEADERSHIP TEAM Mohan Maheswaran President and Chief Executive Officer Charles Ammann Executive Vice President, General Counsel and Secretary Gary Beauchamp Executive Vice President and General Manager, Signal Integrity Products Group Simon Brown Vice President and General Manager, Power and High Reliability Products Group Chris Chang Senior Vice President, Corporate Marketing and Business Development Emeka Chukwu Executive Vice President and Chief Financial Officer Mark Costello Vice President and General Manager, Protection Products Group Sharon Faltemier Senior Vice President, Human Resources James Kim Senior Vice President, Worldwide Sales Marc Pegulu Vice President and General Manager, Wireless and Sensing Products Group Asaf Silberstein Senior Vice President, Worldwide Operations and Information Technology Michael Wilson Executive Vice President, Quality and Reliability BOARD MEMBERS Rockell N. Hankin Chairman of the Board, Nominating and Governance Committee Chair, Semtech Corporation; Chairman of the Board, The Kavli Foundation; lnvestor Glen M. Antle Former Chairman and Director of Trident Microsystems, lnc.; Former Chairman of Quickturn Design Systems, lnc.; Former Co-Chairman and CEO of Cadence Design Systems, lnc. James P. Burra Vice Chairman, Semtech Corporation; CEO, Endural, LLC and its predecessors Bruce C. Edwards Compensation Committee Chair, Semtech Corporation; CEO, Palagon Partners, LLC; Director, Lantronix, lnc.; Former Chairman and Director, Emulex Corporation Ye Jane Li Strategic Advisor, Diversis Capital, LLC; Advisory Board Member, a couple of private companies; Former COO, Huawei Enterprise USA, Inc.; Director, ServicePower and Knowles Corporation James T. Lindstrom Audit Committee Chair, Semtech Corporation; Former COO and CFO of Kilopass Technology, lnc.; Former CFO of eSilicon Corporation Mohan Maheswaran President and Chief Executive Officer, Semtech Corporation Carmelo J. Santoro Independent Business Consultant; Board Member, several private companies; Former President and CEO, Attensity Inc.; Former CEO and Chairman, Platinum Software Corp and Silicon Systems Inc. Sylvia Summers Board Member, Aristocrat Leisure Limited and Headwaters, lnc.; Former Chief Executive Officer, President and Director, Trident Microsystems, lnc. CORPORATE INFO 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 Email: webir@semtech.com Telephone: 805-480-2004 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 SEMTECH CORPORATION 2018 Annual Report 200 Flynn Road, Camarillo, CA 93012 www.semtech.com NASDAQ Ticker Symbol: SMTC S E M T E C H C O R P O R A T I O N | 2 0 1 8 A N N U A L R E P O R T

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