Semtech Corporation Q2 2009 Earnings Call Transcript

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2008-08-20 19:00:22.0

Tags: Semtech

Question-and-Answer Session

Operator

And your first question comes from the line of Shawn Webster with JP Morgan

Shawn Webster – JP Morgan

Yes, thank you for taking my questions. Good afternoon. On the – can you give us an update on where you lead times where at the end of the quarter maybe some commentary on the linearity of your backlog and then I have a follow up or two.

Mohan Maheswaran

Supply lead times in the 6 to 12 weeks are very strong bad operation and back end, but in that range obviously our Power Discrete business the lead times are little bit longer and orders are coming in about 6 to 8 weeks.

Shawn Webster – JP Morgan

Okay and the linearity of your orders.

Mohan Maheswaran

In Q2 the linearity that the booking were higher in the second half of Q2 as what we have expected and kind of that’s the same quarter we expect in Q3 as well.

Shawn Webster – JP Morgan

Okay. And for the fire, so you have $1 million of revenue impacting roughly in Q3 and then $2 million to $3 million in Q4, is that versus your plan or is that should we think about that is sequential declines each quarter in that business unit?

Emeka Chukwu

The $1 million softer impact is obviously versus our plan, our internal plan.

Shawn Webster – JP Morgan

Okay, are you expecting growth in the back half of the year for the segment?

Mohan Maheswaran

Yes, we’re expecting that business unit to continue to grow as we increased our manufacturing capacity over there.

Shawn Webster – JP Morgan

Okay and is there any color you can provide on the communications segment weakness in terms of specifics or geographies?

Mohan Maheswaran

Communications was really our historical Sonnet based communications products, what used to be our Acapella product line. It’s really the historical infrastructural communications stuff versus the new base station type of products we have designed into. So, that’s really where most of the weakness was.

Shawn Webster – JP Morgan

Okay and I’m sorry. Last one on the gross margins flat to down a 100 basis points, what’s – what are is it mostly the recoveries from the fire that swings out a 100 basis point around in terms of what you are expecting for Q3 or what are the moving parts that will move it to one side or another of that?

 

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