NEW YORK (Thomson Financial) - Semtech Corp. Tuesday reported third-quarter
adjusted earnings of $19.4 million, or 29 cents a share.
Including certain items, the Camarillo, Calif., chip maker earned $16
million, or 24 cents a share, in the quarter ended Oct. 28, up from a year-ago
equivalent profit of $6.3 million, or 9 cents a share.
The company said a beneficial shift in regional income and favorable tax
treatment in Switzerland because of weakness in the U.S. dollar against the
Swiss Franc added about 5 cents per share to earnings in the third quarter on
both an adjusted, or non-GAAP, and GAAP (generally accepted accounting
principles) basis.
Sales rose 23.3% in the quarter to $78.6 million from $63.7 million in the
same period a year earlier.
The mean estimate of analysts polled by Thomson Financial was for a profit
of 22 cents a share in the October period with sales of $77.2 million.
For the fourth quarter, Semtech sees adjusted earnings of 24 to 25 cents a
share with sales flat to down 3% on a sequential basis.
Wall Street's current consensus estimate for the January quarter is for
earnings of 23 cents a share on sales of $79.9 million.
In addition, Semtech said it's settled litigation related to a dispute with
a customer and that it expects to receive $6.5 million from an insurer as part
of the settlement. The company anticipates the settlement will be paid in two
installments in fiscal 2009. It plans to recognize a gain of 7 cents a share,
net of legal expenses, in the fourth quarter from the settlement.
The stock closed at $15.90.
Michael Baron
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