CAMARILLO, Calif. (AP) ? Analog and mixed-signal semiconductor maker Semtech Corp. said Wednesday that its third-quarter profit surged 67 percent as expenses declined versus a year earlier and a tax benefit helped offset charges related to stock-based compensation and other costs.
Management, however, said it expects its fourth-quarter results to be adversely affected by the recent floods in Thailand.
The company’s shares sank 4.5 percent in aftermarket trading.
Semtech reported net income rose to $27 million, or 40 cents a share, for the three months ended Oct. 30. That compares with net income of $16.1 million, or 25 cents a share, in the prior-year quarter.
Excluding one-time charges and benefits, Semtech’s earnings amounted to 52 cents a share in the latest quarter, the company said.
Analysts were anticipating, on average, adjusted earnings of 45 cents a share, according to FactSet.
Operating expenses fell to $50.2 million from $56.3 million a year earlier.
Quarterly revenue edged up slightly to $123.9 million from $123.1 million. Analysts had forecast revenue of $123 million.
For the fourth quarter, Semtech expects earnings, excluding special items, to range from 27 cents to 33 cents a share, and revenue between $102 million to $108 million. The estimate ranges fall shy of analysts’ consensus forecast for adjusted earnings of 41 cents on $116.1 million in revenue.
Meanwhile, Semtech said its board of directors has increased the company’s stock buyback program by $50 million. Prior to the move, the company had $20 million remaining in a buyback authorization enacted in 2008 and amended in August of this year.
Semtech shares fell $1.05, or 4.5 percent, to $22.15 in aftermarket trading. The stock ended the regular trading session up $1.54, or 7.1 percent, at $23.20.