Semtech Corp. reported a better-than-expected fiscal second quarter profit, but was cautious about prospects, citing inventory issues at some smartphone manufacturers that use its semiconductors.

After the markets closed Wednesday, the Camarillo chipmaker reported net income of $19.1 million (28 cents a share) for the quarter ended July 28, which was 29 percent higher than in the same period a year earlier. Excluding the impact of stock-based compensation and other one-time items, the company earned 52 cents a share, 1 cent better than the Wall Street consensus.

Revenue rose nearly 10 percent to $165 million, slightly better than analyst forecasts of less than $165 million.

Semtech expects third-quarter adjusted earnings between 31 and 37 cents a share on revenue of between $135 and $145 million. The Wall Street consensus was for 54 cents a share profit on revenue of $169 million.

Semtech makes analog and mixed-signal semiconductors for high-end consumer, computing, communications and industrial equipment. Chief Executive Mohan Maheswaran said that despite the strong second quarter, he expects the company will see a drop in demand amid “inventory corrections” at several of its largest smartphone customers.

“We anticipate that this weakness will continue through most of the second half,” Maheswaran said in a statement. “However, we remain confident in our ability to manage through any short-term demand fluctuations as we head towards our $1 billion (full-year) revenue goal."

Shares on Thursday rose 43 cents, or 1.5 percent, to $30.07 on the Nasdaq.