Revenue up at Semtech, down at QAD
Two of the region’s top technology companies reported second quarter earnings on Aug. 26, with results underscoring how the Internet of Things and cloud computing are transforming established players in semiconductors and software.
Camarillo-based Semtech Corp, with a market cap of slightly more than $4 billion, said sales for the second quarter were $143.7 million, a 5 percent increase from the prior year quarter and up 8 percent from the first quarter.
Its earnings were 43 cents per share on an adjusted basis and 24 cents using generally accepted accounting principles, as it repurchased $12 million worth of stock in the quarter.
Revenue and earnings were both higher than analyst forecasts, though the company did say that third quarter results will be hard to predict due to COVID-19 impacts.
In a statement, Mohan Maheswaran, Semtech’s president and CEO, said revenue from its LoRa technology platform for wireless signals were a record, and he also noted that a recent deal with Amazon Web Services will allow LoRa networks to “connect straight into the Amazon Cloud.”
Meanwhile, Santa Barbara-based enterprise software firm QAD, with market cap of around $875 million for its heavily traded Class A shares, said revenue for its fiscal second quarter was $74.1 million, a slight decline from $76.4 million in the prior year quarter.
QAD said revenue was negatively impacted by currency fluctuations to the tune of $1.4 million but subscription revenue jumped 20 percent year over year. The company reported GAAP pre-tax income of $500,000, versus a GAAP pre-tax loss of $3.4 million. On an adjusted basis, pre-tax net income was $4.5 million, compared with $43,000 a year earlier.
On an after-tax basis, the GAAP net income of $60,000 was zero per share, versus a loss of 69 cents on its Class A shares and 57 cents on its B shares.
“I was pleased to see our strong sales performance this quarter continuing to drive our transformation to the cloud,” said CEO Anton Chilton in a statement.