Semtech Misses Profit And Sales Estimates, Provides Downbeat Outlook

Semiconductor maker Semtech Corp. reported fiscal first-quarter results that missed expectations, and provided a second-quarter outlook that was below current analyst projections, citing disappointing sales to a large customer. For the quarter ended April 26, company reported a net loss of $142,000, or breakeven on a per-share basis, compared with a loss of $15.4 million, or 23 cents a share, in the same period a year ago. Excluding non-recurring items, such as restructuring and acquisition-related charges, earnings per share came in at 27 cents, below the FactSet consensus of 28 cents. Sales slipped to $130.1 million from $130.4 million, missing the FactSet consensus of $132.5 million. For the current quarter, the company expects adjusted EPS of 21 cents to 26 cents and sales of $120 million to $130 million, below the FactSet consensus of 37 cents and $141 million, respectively. "We saw strong demand from our enterprise computing and communication end-markets driven by the datacenter and PON market segments," said Chief Executive Mohan Maheswaran. "However, demand from our largest smartphone customer was much lower than anticipated, leading to results that were at the lower end of our guidance range." The stock, currently halted for news dissemination, has slumped 11% year to date, while the S&P 500 has gained 3.1%.