Blaze hits Semtech's Mexico plant

Semtech Corp. has announced that a fire last week hit its Reynosa fabrication facility in Mexico. The Reynosa fab provides services to the company's power discrete business unit. No one was injured from the incident. However, the facility was partially damaged and reportedly has some equipment missing. The management has undertaken all the recovery plan procedures. The facility is expected to return to its operations within eight to nine weeks.

The incident is said to have no bearing to Semtech's Q2 fiscal year 09 revenues. However, it is calculated that the fire cost less than one million dollar which may impact Q3 fiscal year 09 revenues. The company currently estimates two to three million dollar impact on Q4 fiscal year 09 revenues.

Other updates on the impact to business will be available during the Company's Q2 earnings call later this month.