Semtech Sales Climb
Staff Reporter -- EDN, May 31, 2006
Driven by strong demand in portable electronics, communications equipment and industrial applications, Semtech Corp. turned in higher net sales for its fiscal Q1.
The high-performance analog and mixed signal company said that net sales for Q1 hit $65.9 million, up 17 percent from $56.2 million for the same period a year ago and up 2 percent sequentially.
Net income for Q1 came in at $12 million or 16 cents per diluted share, compared with net income of $10.8 million or 14 cents per diluted share for the same period a year ago.
The Camarillo, Calif.-based company said that new designs and higher content in feature rich consumer devices benefited demand. However, the computing segment was impacted by seasonal weakness, which Semtech said has historically occurred in the first half of the calendar year.
"The first quarter played out as expected, with the company achieving sales and order growth, above forecast margin expansion and strong cash flow. We expect a similar performance in the second quarter,” said Mohan Maheswaran, president and CEO, in a statement.
“…With a renewed focus on innovative platforms, design wins, and a global sales strategy, I believe that Semtech can drive profitable growth well above the industry average for many years to come," he added.
And that starts with the company’s next quarter. Semtech estimates that net sales for the quarter ending July 30 will be in the range of flat to up 2 percent sequentially. The company noted that turns orders of about 40 percent are required to achieve this forecast.
Semtech expects Q2 earnings of 15 cents to 16 cents per diluted share next quarter. Stock-based compensation is expected to reduce earnings by approximately 4 cents per diluted share.
