By Dean Seal
Semtech swung to a profit in its fiscal first quarter as sales surged and overhead costs came down.
The chipmaker posted a profit of $19.3 million, or 22 cents a share, for the quarter ended April 28. That compares with a loss of $23.2 million, or 36 cents a share, in the same quarter a year earlier.
Stripping out one-time items, adjusted earnings were 38 cents a share. Analysts polled by FactSet had been expecting 37 cents a share.
Sales jumped 22% to $251.1 million, ahead of analyst estimates for $250 million, according to FactSet.
The company's gross margin improved and its overhead costs declined from a year earlier, helping the top-line gains bring Semtech back into profitability.
Chief Executive Hong Hou said demand trends are improving.
For the current quarter that started April 29, the company expects to report revenue of $251 million to $261 million, in line with current analyst estimates, according to FactSet.
Adjusted earnings are expected to be 37 cents to 43 cents a share. Analysts are currently targeting 39 cents a share.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
May 27, 2025 16:44 ET (20:44 GMT)
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