Semtech shares fall despite rise in net income
Shares for Camarillo semiconductor and Internet of Things company Semtech fell more than 5 percent after the company reported a rise in net income but a lower than expected third quarter outlook.
Net sales for the quarter ended July 30 increased 13 percent over its previous second quarter to $153.1 million, for a net income of $12.6 million, or 19 cents per diluted share, up nearly 40 percent. Total operating costs rose 12 percent over the same period to $73.3 million, primarily in selling, general and administrative expenses.
But the company expected net sales to remain flat to down 5 percent for the third quarter, with earnings per diluted share of 18-22 cents.
The company saw strong growth in its LoRa and IoT, mobile, cloud and data center markets, President and CEO Mohan Maheswaran said in a news release Aug. 30.
Record revenues in the first half of the fiscal year “combined with solid design wins and ongoing diversification in our protection business increase our confidence and belief that the company is well-positioned to deliver a record annual financial performance this fiscal year,” he said.
The company had $277.85 million in cash and cash equivalents, with $128.4 million in current liabilities. The stock had fallen an even $2, to $37.05, by Sept. 1.
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