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Semtech announces profit, acquisition

By   /   Wednesday, November 18th, 2009  /   Comments Off on Semtech announces profit, acquisition

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Camarillo-based chipmaker Semtech, which makes parts for the BlackBerry and other mobile phones, announced an $11.9 million third-quarter profit Nov. 18 and said it had purchased Irvine-based chipmaker Sierra Monolithics for $180 million in cash.

Revenues were down 6 percent from a year ago to $75.1 million, but that figure represented a 13 percent increase from the quarter before.

Semtech’s earnings per share of 19 cents missed analyst expectations by about 2 cents, according to a survey from Reuters. Shares declined about 1 percent in trading Nov. 18.

Strictly speaking, Semtech turned in a third-quarter loss of $20.9 million. But that includes a one-time tax hit of $32.8 million that the company took when it brought its $180 million in cash over from foreign accounts to buy Sierra Monolithics. Excluding that tax hit, Semtech’s profit would have been $11.9 million, essentially flat from the $11.5 million in earnings the year before.

Based in Irvine, Sierra Monolithics makes chips for the broadband wireless and optical communications markets, among others. The private company is backed by funding from Storm Ventures, U.S. Venture Partners and IBM, according to its Web site.

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