Newbury Park, California–Semtech Corp. recently announced that it expects to achieve analysts’ consensus earnings estimates of 23 cents per share for the fourth quarter (Q4) ending January 28, 2001. Semtech is forecasting that Q4 revenue will be sequentially flat compared with third quarter levels.
Previously, the company’s sequential revenue growth forecast was 7 to 9% for Q4. For all of fiscal year 2001, revenue is now forecasted to grow 47% and net income is expected to increase over 100% compared to the prior year.
Jack Poe, chairman and chief executive officer, commented, “Our backlog as of the beginning of the quarter positioned the company to meet our initial revenue forecast, assuming normal historical turns were achieved. Since that time, OEM customers, contract manufacturers and distributors have adjusted their ordering patterns to reduce inventory levels. This combined with a temporary slowdown in demand for certain communication equipment and personal computers, will reduce our sequential revenue growth. We expect the inventory correction will be completed during the first quarter. Revenue for the first quarter is expected to be approximately flat compared with Q4 levels. Sequential revenue growth should resume in the second quarter of fiscal year 2002.”
Poe added, “Gross margin continues to expand. Introduction of new, proprietary products out of our advanced communications, human interface devices (HID), and ECL clock and logic product lines are being well received. We are also starting to see the benefit of focusing our power management business unit on portable and telecommunication applications. Based on the stream of new products across all product lines and design wins from customers, we remain very confident about the long-term growth of the company.”