Semiconductor company Semtech Corp. (SMTC), Wednesday reported a surge in profit for the first quarter, driven mainly by strong revenue growth and improved margins. Earnings for the quarter came in line with estimates, while revenues trumped expectations.
Camarillo, California-based Semtech's first-quarter profit surged to $14.8 million or $0.22 per share from $2.2 million or $0.03 per share last year.
Excluding one-time items, earnings for the quarter rose to $0.46 per share from $0.27 per share a year ago. On average, eight analysts polled by Thomson Reuters expected earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.
Semtech, which makes analog and mixed-signal semiconductors, said revenues surged 39.2 percent to $162.4 million from $116.6 million last year. Analysts expected revenues of $158.73 million for the period.
Gross margin in the first quarter advanced to 59.9 percent from 47.4 percent a year ago.
Commenting on the results, Chief Executive Mohan Maheswaran said, "Q1 of Fiscal year 2014 was another record quarter for Semtech. In addition to record revenues and record gross margin dollars, we achieved a record number of design wins and a positive book-to-bill."
Looking forward to the second quarter, the company expect earnings in the range of $0.21 to $0.29 per share, adjusted earnings of $0.50 to $0.56 per share, and revenues of $164.0 million to $172.0 million. Analysts currently expect earnings of $0.53 per share on revenues of $167.22 million.
SMTC closed Wednesday's trading at $36.33, down $0.41 or 1.12%, on the Nasdaq. The stock further slipped $0.23 or 0.63% in after hours.
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