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Thursday, Sep 28, 2023

Semtech Earnings Beat Wall Street Estimates

Semtech Corp. just beat Wall Street expectations on revenue in the fiscal second quarter.

The Camarillo semiconductor and Internet-of-Things products manufacturer reported on Wednesday an adjusted net income of $55 million (87 cents a share) for the quarter ending July 31, compared with an adjusted net income of $42 million (65 cents) in the same period a year earlier. Revenue increased by 13% from the prior year to $209 million.

Analysts on average expected revenue of $208 million, according to Thomson Financial Network. No analysts gave an estimate on earnings.

Mohan Maheswaran, chief executive of Semtech, said that the company continues to deliver a record financial performance driven by increasing adoption of its unique technology that enables a more sustainable planet.

“The macro demand environment is deteriorating and, as a result, we are anticipating a weaker second half performance,” Maheswaran said in a statement. “As we prepare for the proposed acquisition of Sierra Wireless, we are excited by the potential future transformation of the company and anticipate strong growth in the years ahead.”

Semtech announced early this month it was acquiring Sierra Wireless in Vancouver, British Columbia and adding to its Internet-of-Things capabilities in a deal valued at $1.2 billion.

Shares in Semtech (SMTC) closed down 66 cents, or about 1.4%, to $46.19 on the Nasdaq, on a day when that market closed down a fraction of a percent.

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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