Semtech Lowers Outlook On Expenses From Comcast Network Deal

By Wallace WitkowskiMarketsMarketWatch Pulse

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.

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