Net revenues for the second quarter of fiscal year 2010 were $66.3 million, down 15 percent from the second quarter of fiscal year 2009 and up 10 percent compared to the first quarter of fiscal year 2010.

Net income for the second quarter of fiscal year 2010, computed in accordance with U.S. generally accepted accounting principles (GAAP), was $7.4 million or 12 cents per diluted share. GAAP net income was $11.7 million or 19 cents per diluted share in the second quarter of fiscal year 2009 and $4.9 million or 8 cents per diluted share in the first quarter of fiscal year 2010.

GAAP gross profit margin for the second quarter of fiscal year 2010 was 54.5 percent compared to 54.9 percent in the second quarter of fiscal year 2009 and 54.5 percent in the first quarter of fiscal year 2010.

Semtech had $291.1 million of cash, cash equivalents and investments as of July 26, 2009, which was up from $270.5 million at the end of the first quarter of fiscal year 2010.

Mohan Maheswaran, Semtech's President and Chief Executive Officer, commented, "Semtech delivered solid financial results in the second quarter as we saw stronger demand from the high end consumer, communications and computing segments. Semtech's strategy combined with solid execution are yielding positive results for the company."

The results announced today are preliminary, as they are subject to customary quarterly review procedures by the Company's independent registered public accounting firm. As such, these results are subject to revision until the Company files its Quarterly Report on Form 10-Q for the second quarter of fiscal year 2010.

Third Quarter Outlook

Semtech estimates net sales for the third quarter, which ends October 25, 2009, will increase 6 percent to 10 percent on a sequential basis. GAAP earnings for the third quarter of fiscal year 2010 are expected to be 12 to 14 cents per diluted share.

Forward-Looking and Cautionary Statements This report 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. Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and events to differ materially from those projected. Important factors that could cause actual results to differ materially include, but are not limited to: the depth, extent and duration of current and continuing world wide economic disruption and uncertainty, at both a macro level, and as impacts the Company's products, industry, and market sector, and the Company's ability to forecast and achieve anticipated revenues and earnings estimates in light of continuing economic uncertainty. Additionally, 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 25, 2009, in the Company's other filings with the SEC, and in material incorporated therein by reference. 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.

About Semtech

Semtech Corporation is a leading supplier of analog and mixed-signal semiconductors for high-end consumer, computing, communications and industrial equipment. Products are designed to benefit the engineering community as well as the global community. The company is dedicated to reducing the impact it, and its products, have on the environment. Internal green programs seek to reduce waste through material and manufacturing control, use of green technology and designing for resource reduction. Publicly traded since 1967, Semtech is listed on the NASDAQ Global Select Market under the symbol SMTC. For more information, visit http://www.semtech.com.

  SEMTECH CORPORATION                                                                                           GAAP CONSOLIDATED STATEMENTS OF INCOME                                                                        (Table in thousands - except per share amount)                                                                                                                                                                                                                    Three Months Ended                          Six Months Ended                                                  July 26,      July 27,      April 26,       July 26,      July 27,                                            2009          2008          2009            2009          2008                                                Q2 2010       Q2 2009       Q1 2010         Q2 2010       Q2 2009                                             (Unaudited)   (Unaudited)   (Unaudited)     (Unaudited)   (Unaudited)                                                                                                                                                                                                                               Net sales                             $  66,317     $  77,960     $  60,077       $  126,394    $  152,404    Cost of sales                            30,165        35,165        27,345          57,510        68,818     Gross profit                             36,152        42,795        32,732          68,884        83,586                                                                                                                   Operating costs and expenses:                                                                                 Selling, general and administrative      16,581        18,787        17,267          33,848        37,408     Product development and engineering      10,591        10,434        10,085          20,675        21,506     Acquisition related items                302           273           303             605           545        Restructuring charge                     160           140           188             348           2,310                                                                                                                    Total operating costs and expenses       27,634        29,634        27,843          55,476        61,769                                                                                                                   Operating income                         8,518         13,161        4,889           13,408        21,817                                                                                                                   Interest and other income, net           282           1,241         1,290           1,572         2,980                                                                                                                    Income before taxes                      8,800         14,402        6,179           14,980        24,797     Provision for taxes                      1,380         2,738         1,236           2,616         5,056                                                                                                                    Net income                            $  7,420      $  11,664     $  4,943        $  12,364     $  19,741                                                                                                                   Earnings per share:                                                                                           Basic                                 $  0.12       $  0.19       $  0.08         $  0.20       $  0.32       Diluted                               $  0.12       $  0.19       $  0.08         $  0.20       $  0.32                                                                                                                     Weighted average number of shares:                                                                            Basic                                    60,493        61,839        60,321          60,429        61,278     Diluted                                  61,044        62,584        60,593          60,885        62,135      -------------------------------------------------------------------------------  

  SEMTECH CORPORATION                                                                                           GAAP CONSOLIDATED STATEMENTS OF INCOME                                                                        (Table stated as a percentage of revenue)                                                                                                                                                                                                                         Three Months Ended                          Six Months Ended                                                  July 26,      July 27,      April 26,       July 26,      July 27,                                            2009          2008          2009            2009          2008                                                Q2 2010       Q2 2009       Q1 2010         Q2 2010       Q2 2009                                             (Unaudited)   (Unaudited)   (Unaudited)     (Unaudited)   (Unaudited)                                                                                                                 Net sales                             100.0%        100.0%        100.0%          100.0%        100.0%        Cost of sales                         45.5%         45.1%         45.5%           45.5%         45.2%         Gross profit                          54.5%         54.9%         54.5%           54.5%         54.8%                                                                                                                       Operating costs and expenses:                                                                                 Selling, general and administrative   25.0%         24.1%         28.7%           26.8%         24.5%         Product development and engineering   16.0%         13.4%         16.8%           16.4%         14.1%         Acquisition related items             0.5%          0.4%          0.5%            0.5%          0.4%          Restructuring charges                 0.2%          0.2%          0.3%            0.3%          1.5%                                                                                                                        Total operating costs and expenses    41.7%         38.0%         46.3%           43.9%         40.5%                                                                                                                       Operating income                      12.8%         16.9%         8.1%            10.6%         14.3%                                                                                                                       Interest and other income, net        0.4%          1.6%          2.1%            1.2%          2.0%                                                                                                                        Income before taxes                   13.3%         18.5%         10.3%           11.9%         16.3%         Provision/(credit) for taxes          2.1%          3.5%          2.1%            2.1%          3.3%                                                                                                                        Net income                            11.2%         15.0%         8.2%            9.8%          13.0%                                                                                                                       Note: Percentages may not add or calculate precisely due to rounding                                           -------------------------------------------------------------------------------  

  SEMTECH CORPORATION                                                    CONSOLIDATED BALANCE SHEETS                                            (Table in thousands)                                                                                                                                                                     July 26,      January 25,                                              2009          2009                                                     (Unaudited)                 ASSETS                                                                                                                                        Current assets:                                                        Cash and cash equivalents                  $  115,910    $  147,666    Temporary investments                         151,628       98,735     Receivables, less allowances                  25,581        27,467     Inventories                                   26,644        27,986     Deferred income taxes                         4,344         4,287      Other current assets                          8,979         7,561      Total Current Assets                          333,086       313,702                                                                           Property, plant and equipment, net            32,083        31,786     Long-term investments                         23,513        12,414     Deferred income taxes                         25,701        25,544     Goodwill                                      25,540        25,540     Other intangibles                             3,785         2,091      Other assets                                  9,507         9,718      Total Assets                               $  453,215    $  420,795                                                                           LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                          Current liabilities:                                                   Accounts payable                           $  19,000     $  10,653     Accrued liabilities                           14,712        15,915     Income taxes payable                          2,226         2,108      Deferred revenue                              2,597         2,808      Accrued taxes                                 727           727        Deferred income taxes                         1,537         1,604      Total Current Liabilities                     40,799        33,815                                                                            Deferred income taxes - non current           702           101        Accrued taxes                                 3,645         3,563      Other long-term liabilities                   6,792         5,296                                                                             Shareholders' equity                          401,277       378,020    Total Liabilities & Shareholders' Equity   $  453,215    $  420,795     -------------------------------------------------------------------------------  

The following information is provided to enhance the user's overall understanding of the Company's comparable financial performance between periods. Management generally considers these items in managing and evaluating the performance of the business.

                                                   Three Months Ended                             Six Months Ended                                                               July 26,       July 27,       April 26,        July 26,       July 27,                                                           2009           2008           2009             2009           2008        Supplemental Information                         Q2 2010        Q2 2009        Q1 2010          Q2 2010        Q2 2009        (in thousands)                                   (Unaudited)    (Unaudited)    (Unaudited)      (Unaudited)    (Unaudited)                                                                                                                                  Acquisition related items                           302            273            303              605            545         Option and restatement related expenses             (340    )      435            409              69             490         Stock based compensation expense                    4,952          4,431          4,767            9,718          9,253       Restructuring cost                                  160            140            188              348            2,310       Total before taxes                                  5,074          5,279          5,667            10,740         12,598      Associated tax effect                               (1,399  )      (1,508  )      (1,441  )        (2,841  )      (3,528  )   Total of supplemental information net of taxes   $  3,675       $  3,771       $  4,226         $  7,899       $  9,070        -------------------------------------------------------------------------------  

                                                                                                                                                      Three Months Ended                          Six Months Ended                                                  July 26,      July 27,      April 26,       July 26,      July 27,                                            2009          2008          2009            2009          2008          Stock Based Compensation Expense      Q2 2010       Q2 2009       Q1 2010         Q2 2010       Q2 2009       (in thousands)                        (Unaudited)   (Unaudited)   (Unaudited)     (Unaudited)   (Unaudited)   Cost of sales                         $  344        $  382        $  314          $  658        $  786        Selling, general and administrative      3,354         3,010         3,590        $  6,944         6,383      Product development and engineering      1,254         1,039         863          $  2,116         2,084      Total stock-based compensation        $  4,952      $  4,431      $  4,767        $  9,718      $  9,253       -------------------------------------------------------------------------------  

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