In accordance with an embodiment, a method includes determining an amplitude of an input signal provided by a capacitive signal source, compressing the input signal in an analog domain to form a compressed analog signal based on the determined amplitude, converting the compressed analog signal to a compressed digital signal, and decompressing the digital signal in a digital domain to form a decompressed digital signal. In an embodiment, compressing the analog signal includes adjusting a first gain of an amplifier coupled to the capacitive signal source, and decompressing the digital signal comprises adjusting a second gain of a digital processing block.