82.1 F
San Fernando
Thursday, Mar 28, 2024
Array

Layoffs at Semtech Lead to Net Loss

Charges related to layoffs by Semtech Corp. contributed to a net loss at the company in its fiscal second quarter. The Camarillo semiconductor manufacturer reported a net loss Wednesday of $313,000 (0 cents a share) for the quarter ending July 26, compared with net income of $17.9 million (26 cents) in the same period a year earlier. Revenue decreased 14 percent to $125.7 million from $147.7 million for the same quarter a year ago. Semtech announced last month that it would trim its global workforce by 8 percent due to a decline in the demand for its semiconductor chips by Korean smart phone makers. The company took a $3.6 million charge associated with those layoffs. Adjusted earnings that exclude the $3.6 million charge, and others taken by the company, resulted in net income of $15.6 million (24 cents a share) in the fiscal second quarter, compared with $28.3 million (42 cents) in the same period a year earlier. Semtech Chief Executive Mohan Maheswaran said the layoffs align operating expenses with the current market environment. “These actions should enable the company to leverage our new product momentum into increased earnings power once revenue growth resumes,” Maheswaran said in a prepared statement. Shares closed up 8 cents, or 0.5 percent, to $16.14 on the Nasdaq.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

Featured Articles

Related Articles