Semtech third quarter earnings per share miss estimate
Semtech, a Camarillo-based maker of semiconductors for cell phones and electronic devices, missed analyst estimates slightly when the company reported third quarter results Nov. 18.
Semtech reported earnings per share of 16 cents. Analysts had expected earnings per share of 24 cents.
Semtech slightly exceeded analyst revenue estimates of $115.4 million by posting earnings of $115.8 million.
Semtech also lost about $10.7 million during the quarter.
In July, Semtech announced it would lay off about 1,000 workers or about 8 percent of its worldwide workforce. At the time, Semtech did not say if the layoffs would impact workers at its Camarillo headquarters.
Semtech’s bottom line was hurt during the quarter by a $3.6 million charge related to the layoffs during the second and third quarters of the 2016 fiscal year. The layoffs will save Semtech $20 million per year.
When the layoffs were announced, CEO Mohan Maheswaran said weak smartphone demand was hurting the company’s bottom line. Those layoffs were in addition to the 1,300 workers Semtech laid off in January of 2014.
The company is banking on its new LoRa technology to boost sales. LoRa can connect various sensors, systems and computers, much like Bluetooth technology, Wi-Fi and cell phone signals. Its signals are longer than Bluetooth and Wi-Fi, but shorter than cell phone signals.
The system is comprised of Semtech chips and towers that transmit LoRa signals. LoRa enabled devices to operate at low power levels so batteries don’t need to be replaced often, and LoRa networks require fewer transmitting towers than cell phone networks.
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