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Semtech Misses Wall Street Earnings Estimates, Beats on Revenue

Semtech Corp. just missed Wall Street estimates on earnings but handily beat on revenue in the fiscal fourth quarter.

The Camarillo semiconductor and Internet-of-Things products manufacturer reported on Wednesday adjusted net income of $30.3 million (47 cents a share) for the quarter ending Jan. 29, compared with net income of $45.7 million (70 cents) in the same period of the previous year. Revenue dropped by 12% from the fourth quarter of the prior year to $167 million.

Analysts on average expected earnings of 48 cents on revenue of $150 million, according to Thomson Financial Group.

Mohan Maheswaran, chief executive of Semtech, said that while the challenging macroeconomic environment is likely to continue for several more quarters, the company’s acquisition of Sierra Wireless Inc. has been completed and helps to diversify geographical balance and deliver highly differentiated products for the growing Internet-of-Things market. Semtech announced on Jan. 12 that it had completed its acquisition of Sierra Wireless Inc. in an all-cash transaction valued at $1.2 billion.

“With our full leading-edge technology portfolio targeting high-growth segments, we are well positioned to realize our vision of enabling a smarter and more sustainable planet,” Maheswaran said in a statement.

Maheswaran announced his retirement on March 16. He will remain as chief executive until a successor has been chosen.

Shares in Semtech (SMTC) closed up $1, or more than 3%, to $32.11 on the Nasdaq, on a day when that market closed up at about 1.8%.

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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