Semtech Beats Forecasts, Sees More Demand Despite ‘Headwinds’

Semtech Corp. beat Wall Street expectations on adjusted earnings and revenue in the fiscal first quarter. The Camarillo semiconductor manufacturer reported adjusted net income of $23 million (35 cents a share) for the quarter ending April 26, compared with adjusted net income of $23 million (34 cents) in the same period a year earlier. Revenue increased 1 percent to $133 million. Analysts on average expected earnings of 32 cents on revenue of $129 million, according to Thomson Financial Network. Chief Executive Mohan Maheswaran said he was pleased with the quarterly results despite unexpected disruptions from the COVID-19 outbreak. “While we are not immune from macroeconomic headwinds, we believe the greater demands being placed on the global communications infrastructure with the shift to work-from-home and the increasing use of long-range sensing platforms should benefit our targeted markets including the data center, PON (passive optical network), 5G wireless and (Internet of Things) markets,” Maheswaran said in a statement. The company announced results Wednesday. Shares of Semtech (SMTC) closed Thursday up $1.23, or 2.5 percent, to $51.44 on the Nasdaq, on a day when that market closed up 1 percent.