Analog-to-digital converter having output data with reduced bit-width and related system and method

A circuit includes an analog-to-digital converter configured to receive an analog input signal and generate first digital values at a first sampling rate. The first digital values have a first bit-width. The circuit also includes an interpolator configured to receive the first digital values and generate second digital values at a second sampling rate higher than the first sampling rate. The second digital values have a second bit-width equal to or greater than the first bit-width. The circuit further includes a digital filter configured to receive the second digital values and perform bit-width reduction in a recoverable manner to generate third digital values. The third digital values have a third bit-width less than the first and second bit-widths. The circuit could optionally include a recovery circuit configured to process the third digital values to generate recovered digital values at the first sampling rate. The recovered digital values have the first bit-width.