Shares of Semtech Corp. (SMTC) slipped over 26 percent in after-hours trading on Friday after the company announced that fiscal year 2026 net sales from its CopperEdge products used in active copper cables are expected to be lower than its prior outlook.
SMTC closed Friday regular trading at $54.51 down $5.99 or 9.90%. In the after-hours trading, the stock further dropped $14.66 or 26.89%.
The company disclosed in a regulatory filing that it expects net sales from CopperEdge products for fiscal year 2026 to be lower than the previously disclosed floor case estimate of $50 million, due to rack architecture changes and no anticipated ramp-up over the course of fiscal year 2026. The company's revised estimates are based on recent feedback from a server rack customer and discussions with end users of the server rack platform.
For fiscal year 2026, net sales from its CopperEdge portfolio are expected to include multiple customers, end users and applications.
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