SEMTECH CORPORATION (NASDAQ: SMTC), a leading producer of high performance analog and mixed-signal semiconductors, today reported un-audited financial results for its fourth quarter of fiscal year 2008 that ended January 27, 2008.

Net sales for the fourth quarter of fiscal year 2008 were $78.6 million, up 35.6 percent from the fourth quarter of fiscal year 2007 and flat when compared to the third quarter of fiscal year 2008.

Net income for the fourth quarter of fiscal year 2008, computed in accordance with U.S. generally accepted accounting principles (GAAP), was $14.9 million or 23 cents per diluted share. GAAP net income was $4.6 million or 6 cents per diluted share in the fourth quarter of fiscal year 2007 and was $16.0 million or 24 cents per diluted share in the third quarter of fiscal year 2008.

Gross profit margin for the fourth quarter of fiscal year 2008 was 54.9 percent compared to 50.3 percent in the fourth quarter of fiscal year 2007 and 54.6 percent in the third quarter of fiscal year 2008.

Non-GAAP net income for the fourth quarter of fiscal year 2008 was $16.8 million or 26 cents per diluted share. Non-GAAP net income was $9.8 million or 13 cents per diluted share in the fourth quarter of fiscal year 2007 and was $19.4 million or 29 cents per diluted share in the third quarter of fiscal year 2008.

Non-GAAP gross profit margin for the fourth quarter of fiscal year 2008 was 55.5 percent. Non-GAAP gross profit margin for the fourth quarter of fiscal year 2007 was 51.4 percent and 55.0 percent in the third quarter of fiscal year 2008.

Non-GAAP results exclude the impact of stock based compensation, the amortization of acquisition-related intangibles, expenses and a recovery settlement associated with now settled litigation against an insurer, the gain on sale of an unused parcel of land, and expenses related to the Company’s now completed investigation into its historical stock option practices and now completed restatement of past financial statements. Non-GAAP results also exclude the impact of ongoing stock option related matters including an inquiry by the SEC, a federal grand jury subpoena, and derivative and class action litigation.

Operating expenses for the fourth quarter of fiscal year 2008 included (i) approximately $0.9 million related to the SEC inquiry, the grand jury subpoena, the derivative and class action litigation, and other matters related to historical stock option practices and (ii) $1.6 million, which is net of insurance proceeds, for the monetary component of a tentative settlement of the federal and state derivative litigation. The parties are working to document the settlement, which is subject to court approval. In the third quarter of fiscal year 2008 these expenses were $0.8 million.

Semtech had $213.4 million of cash, cash equivalents and marketable securities as of January 27, 2008, which was down from $265.8 million at the end of the third quarter of fiscal year 2008. The decrease was due primarily to the Company’s use of $70 million to repurchase stock in the fourth quarter of fiscal year 2008.

New orders were below shipments, resulting in a book-to-bill ratio slightly below one. Demand was strongest within the industrial end markets.

Mohan Maheswaran, Semtech’s President and Chief Executive Officer, commented, “Semtech had another great performance resulting in another record quarterly revenue. Q4 of FY08 ended a very good year for Semtech. In FY08 we grew revenue 13% to $285 million, which is the highest annual revenue in the Company’s history. We also grew Non GAAP EPS by 24% to $0.88 for the year. I am very pleased with the way the Company is starting to execute and I believe that we can continue to hit the aggressive milestones we have set ourselves.”

The results announced today are preliminary, as the annual audit by the Company’s independent registered public accounting firm is still underway. As such, these results are subject to revision until the audit is completed and the Company files its Annual Report on Form 10-K.

First Quarter Outlook

Semtech estimates net sales for the first quarter, which ends April 27, 2008, will be between $70M and $74M. GAAP earnings for the first quarter of fiscal year 2009 are expected to be 13 to 15 cents per diluted share.

Non-GAAP earnings for the first quarter are expected to be 20 to 22 cents per diluted share. Non-GAAP earnings for the first quarter are prior to stock-based compensation expense, amortization of intangibles, and certain legal expenses.

About Non-GAAP Financial Measures

To supplement the Company's consolidated financial statements prepared in accordance with GAAP, this release includes a non-GAAP presentation of gross profit, net income and earnings per diluted share. All of these non-GAAP measures exclude stock-based compensation, acquisition related amortization of intangibles, and other items detailed above. These non-GAAP measures are provided to enhance the user's overall understanding of the Company's comparable financial performance between periods. In addition, the Company's management generally excludes such items in managing and evaluating the performance of the business. A further discussion of these non-GAAP financial measures can be found above, and reconciliations of GAAP results for the fourth quarter of fiscal year 2008 and 2007 and full year 2007 and 2008 respectively, appear with the financial statements later in this release. These additional financial measures should not be considered substitutes for any measures derived in accordance with GAAP and may be inconsistent with similar measures presented by other companies.

About Semtech

Semtech Corporation is a leading supplier of analog and mixed-signal semiconductors used in a wide range of computer, industrial and communication applications.

Forward-Looking and Cautionary Statements This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. 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. Some forward-looking statements may be identified by use of terms such as "expects," "anticipates," "intends," "estimates," "believes,” ”projects,”“should,” “will,”“plans” and similar words.

Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include worldwide economic and political conditions, the timing and duration of semiconductor market upturns or downturns, demand for cellular phones, personal computers and automated test equipment, demand for semiconductor devices in general, demand for the Company’s products in particular, competitors’ actions, supply from key third-party silicon wafer foundries and assembly contractors, manufacturing costs and yields, relations with strategic customers, and risks associated with the businesses of major customers. In addition to considering these risks and uncertainties, forward-looking statements should be considered in conjunction with the cautionary statements contained in the “Risk Factors” section and elsewhere in the Company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2007, in the Company’s other filings with the SEC, and in material incorporated therein by reference. In light of the risks and uncertainties inherent in forecasts of revenue and gross margin and in other projected matters, forward-looking statements should not be regarded as representations by the Company that its objectives or plans will be achieved or that any of its operating expectations or financial forecasts will be realized. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.