Semtech Corp. said demand from its largest smartphone customer
was much lower than expected in the April quarter, and it projected
results below Wall Street views for the current quarter.
The company added that demand was strong in its enterprise
computing and communication markets.
In after-hours trading, Semtech shares were down 8.65% to
$22.49.
Semtech projected earnings excluding items of 21 cents to 26
cents a share on sales of $120 million to $130 million for the July
quarter. Analysts polled by Thomson Reuters expect earnings of 37
cents a share on revenue of $142 million.
In March, the company said fiscal 2015 had been a "transition
year" that included a decline in its optical long-haul business. At
the time, the company was hopeful about expanding into growing
sectors like "the Internet of things." On Wednesday, Semtech said
demand for its Internet of things-focused LoRa wireless platform is
"seeing an acceleration."
Last month, Semtech sold its defense and microwave
communications infrastructure business to newly formed Jariet
Technologies Inc. Semtech holds a minority stake in Jariet.
Semtech said it increased its stock-buyback authorization to
$100 million. It had $30 million remaining under a previous buyback
plan.
For the period ended April 26, Semtech reported a loss of
$142,000, or break-even on a per-share basis, compared with a
profit of $7.9 million, or 12 cents a share, a year earlier.
Excluding stock-based compensation and other items, earnings fell
to 27 cents a share from 32 cents. Revenue fell 2% to $130.1
million.
Semtech had projected per-share earnings of 27 cents to 30 cents
and net sales of $130 million to $136 million.
Write to Josh Beckerman at josh.beckerman@wsj.com
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