Semtech beats analysts’ revenue estimates
Semtech beat analyst estimates but revenues sank again as weak mobile phone demand hampered the Camarillo-based semi conductor manufacturer.
The company reported fourth quarter and year end results March 2 for the 2016 fiscal year. Fourth quarter revenues fell 9 percent from $130.4 million in 2015 to $118.6 million in 2016. According to Yahoo Finance, that beat analysts’ revenue estimates of $116 million. Semtech made $1.25 million during the quarter, a vast improvement from a loss of almost $15.5 million in 2015.
Fourth quarter earnings per share rose from a loss of 23 cents per share in 2015 to a gain of 17 cents per share. According to Zacks Investment Research, analysts predicted gains of 15 cents per share. Quarterly profits were 2 cents per share.
Yearly revenues sank 12 percent from $557.9 million in 2015 to $490.2 million in 2016. Net losses narrowed from $27.9 million in 2015 to $11.5 million in 2016 as the company laid off 1,000 workers or about 8 percent of its global workforce.
Still, the company had profits of $27.9 million in 2015 and just $11.5 million in 2016. Because of that earnings per share fell from 41 cents in 2015 to just 17 cents in 2016.
The company’s bottom line was helped by the layoffs, which saved Semtech $20 million per year. But it paid a $3.6 million charge related to the layoffs during the second and third quarters of the 2016 fiscal year. When Semtech announced the layoffs in July, it did not say if the layoffs would impact workers at its Camarillo headquarters.
Semtech announced guidance for fiscal year 2017 and said it expects revenues between $124 million and $132 million.
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