Semtech Q1 Profit Down - Update

(RTTNews) - Semiconductor company Semtech Corp. (SMTC), Wednesday reported a plunge in first-quarter profit, hurt largely by an 18 percent drop in revenues and weak margins. Nevertheless, both earnings and revenues for the quarter came in ahead of analysts' estimates.

Camarillo, California-based Semtech's first-quarter profit dropped to $7.9 million or $0.12 per share from $14.8 million or $0.22 per share last year.

Adjusted earnings declined to $0.32 per share from $0.46 per share a year ago. On average, nine analysts polled by Thomson Reuters expected earnings of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.

Semtech, which makes analog and mixed-signal semiconductors, said revenues for the first quarter decreased 18 percent to $132.9 million from $162.4 million last year. Seven analysts expected revenues of $130.27 million for the quarter.

Gross margin for the quarter dwindled to 58.8 percent from 59.9 percent last year.

Commenting on the results, Chief Executive Mohan Maheswaran said, "Semtech delivered Q1 results at the upper-end of guidance as we benefited from strength in our high-end consumer and enterprise computing markets. Bookings were strong during the quarter and we enter Q2 with a higher sequential backlog."

Looking forward to the second quarter, the company expects earnings of $0.18 to $0.24 per share, adjusted earnings of $0.36 to $0.42 per share and sales of $138.0 million and $146.0 million. Analysts currently see earnings of $0.37 per share on revenues of $138.60 million for the quarter.

SMTC closed Wednesday's trading at $23.21, up $0.78 or 3.48%, on a volume of 0.8 million shares, on the Nasdaq. The shares gained $0.69 or 2.97% in after-hours trade.