Semtech Lowers Outlook On Expenses From Comcast Network Deal

Semtech Corp. shares were halted in the extended session Wednesday as the semiconductor company lowered its quarterly outlook following a network agreement with Comcast Corp. Semtech shares were halted at $27.74 after hours. The company now sees third-quarter earnings of 43 cents to 47 cents a share, down from a previous forecast of 49 cents to 53 cents a share. Semtech also sees sales of $130 million to $138 million, rather than the previous forecast of $134 million to $142 million. Analysts surveyed by FactSet estimate earnings of 35 cents a share on revenue of $138.5 million. Under the Comcast deal, Semtech said it will grant the media company a warrant to purchase about 1.1 million shares over the next 30 months. Expenses from the warrants will come out of net sales since they are being granted to a customer, Semtech said.