Semiconductor company Semtech Corp. (SMTC), Wednesday reported a better-than-expected increase in fourth-quarter profit, on a nearly 45 percent jump in revenues, partly offset by increased expenses.
Moving forward, Semtech provided a robust guidance for the first quarter, with the shares scaling a new high for the year. The stock gained 11 percent in after-hours trade on the Nasdaq.
"Our innovative product platforms, strategic customer relationships, and fiscal discipline have positioned Semtech to benefit from the continuing improvement in the economy...," said CEO Mohan Maheswaran.
Semtech makes analog and mixed-signal semiconductors. The California-based company reported fourth-quarter net income of $13 million, compared with $12.4 million a year ago. On a per share basis, earnings were unchanged from last year at $0.19, reflecting a higher share count.
Excluding items, adjusted earnings for the quarter were $33 million or $0.49 per share, compared with $21.6 million or $0.32 per share in the prior year.
On average, eight analysts polled by Thomson Reuters expected earnings of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter surged to $150.60 million from $104.03 million last year. Analysts on consensus estimated revenues of $149.12 million.
Gross margin for the quarter expanded to 58.4 percent from 57.4 percent a year ago.
Results were somewhat impacted by operating costs that increased to $75.5 million from $47.7 million last year, due mainly to higher product development and selling expenses.
For the first quarter, the company expects net earnings of $0.17 to $0.24 per share, adjusted earnings of $0.43 to $0.49 per share, and net sales of $154 million to $162 million. Analysts currently estimate earnings of $0.45 per share on sales of $152.21 million.
Semtech closed Wednesday at $30.72, up 0.72%, on the Nasdaq. In after hours, the stock gained $3.51 or 11.43% at $34.23. In the past year, the stock has traded in a range of $22.22 - $31.84.
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