Semtech Q2 Profit Down, But Tops View - Update

(RTTNews) - Semiconductor maker Semtech Corp. (SMTC), Wednesday reported a drop in second-quarter profit, hurt mainly by a 12 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 second-quarter profit dropped to $17.9 million or $0.26 per share from $19.1 million or $0.28 per share last year.

Adjusted earnings for the quarter declined to $28.3 million or $0.42 per share from $35.8 million or $0.52 per share a year ago. On average, nine analysts polled by Thomson Reuters expected earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.

Semtech, which makes analog and mixed-signal semiconductors, said revenues for the quarter declined 12 percent to $145.74 million from $165.01 million last year. Seven analysts had consensus revenue estimate of $142.20 million for the quarter.

Gross margin for the second quarter dropped to 60.5 percent from 61.0 percent last year.

Looking ahead to the third quarter, the company expects adjusted earnings of $0.42 to $0.48 per share and net sales of $142 million to $152 million. Analysts currently expect third-quarter earnings of $0.46 per share on revenues of $152.47 million.

SMTC closed Wednesday's trading at $24.00, up $0.64 or 2.74%, on the Nasdaq. The stock further gained $0.50 or 2.08% in after-hours trade.