Semtech Posts Q2 Loss

(RTTNews) - Semiconductor company Semtech Corp. (SMTC), Wednesday reported a loss for the second quarter, compared to a profit last year, as revenues and margins dropped. Adjusted earnings for the quarter came in line with estimates, while revenues trumped expectations. Moving ahead, Semtech detailed a weak outlook for the third quarter.

Camarillo, California-based Semtech reported second-quarter loss of $313 thousand or $0.00 per share, compared with profit of $17.9 million or $0.26 per share last year.

Excluding items, adjusted earnings for the quarter were $0.24 per share, compared with $0.42 per share a year ago. On average, nine analysts polled by Thomson Reuters estimated earnings of $0.24 per share for the quarter. Analysts' estimates typically exclude special items.

Semtech, which supplies analog and mixed-signal semiconductors, said revenues for the quarter dropped 14 percent to $125.7 million from $145.7 million last year. Analysts had a consensus revenue estimate of $123.74 million for the quarter.

Gross margin declined to 60.1 percent from 60.5 percent last year.

CEO Mohan Maheswaran said, "Semtech delivered results consistent with our guidance as strength in the Enterprise Computing end-market was offset by the expected declines in the other three end-markets, particularly the High-End Consumer end-market, where we experienced continued weakness from our Korean smartphone customers."

Looking forward to the third quarter, the company expects adjusted earnings of $0.21 to $0.27 per share and sales of $110 million to $120 million. Analysts currently estimate earnings of $0.29 per share on revenues of $129.53 million for the quarter.

SMTC closed Wednesday's trading at $16.06, down $0.45 or 2.73%, on the Nasdaq. The stock further dropped $0.41 or 2.55% in the after-hours trade.