Semtech sets sales record, shares soar
Camarillo-based Semtech beat analyst expectations for revenue and profits for its most current fiscal year and raised its sales prediction for the next quarter, sending shares up more than 11 percent in after-hours trading.
Semtech said its full-year revenue came to $578.8 million, up 20.4 percent from its previous year and topping analyst expectations of $577.4 million, according to seven analysts surveyed by Thomson Financial Network.
The company’s adjusted net income came to $114.5 million, or $1.70 per diluted share, compared to $119.8 million, or $1.78 per diluted share, a year earlier. Eight analysts predicted adjusted profits of $1.65 per share.
What appears to have after-hours investors excited is Semtech’s outlook. Despite the slight decrease in full-year profits, the company boosted its first-quarter revenue outlook to the $154 million to $162 million range.
And that slight dip in full-year profitability came for what investors view as a good reason: revenue growth. Alongside organic sales expansion, Semtech received a boost from the $494 million acquisition of the Canadian firm Gennum, its biggest merger to date.
In a statement, Mohan Maheswaran, Semtech’s president and chief executive officer, called the results a “pivotal” year for the company.
“We closed and successfully integrated the largest acquisition in company history and posted record revenue, gross profit and cash flow,” he said in a statement. “Our innovative product platforms, strategic customer relationships and fiscal discipline have positioned Semtech to benefit from the continuing improvement in the economy and ongoing strength in the high-growth markets we are targeting.”