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Semtech Corporation (SMTC)

  • Thu, Oct. 1, 2:01 PM
    • After outperforming yesterday as markets rallied, chip stocks are doing the opposite today amid a selloff. The Philadelphia Semi Index (SOXX -2.1%) is back below $80.
    • Possibly hurting the group: Digitimes reports iPhone chip suppliers are worried Apple could cut its Q4 orders, and that one "major analog IC supplier" has disclosed a slight December order cut. At the same time, Digitimes states suppliers won't know if major order cuts will happen for at leas 1-2 months. iPhone suppliers seeing major losses include NXP (NXPI -4.2%), Avago (AVGO -3.8%), Qorvo (QRVO -4.5%), Cirrus Logic (CRUS -3.1%), Fairchild (FCS -4.9%), and Analog Devices (ADI -3.8%).
    • However, it's worth noting several chipmakers lacking iPhone exposure are also down strongly. The list includes Himax (HIMX -3.5%), PMC-Sierra (PMCS -4.1%), InPhi (IPHI -4.6%), Semtech (SMTC -4.6%), and QuickLogic (QUIK -5.7%). Chip IP provider CEVA (CEVA -3.8%) and specialty foundry TowerJazz (TSEM -5%) are also selling off.
    • Memory giant Micron reports after the bell.
    | Thu, Oct. 1, 2:01 PM | 26 Comments
  • Wed, Aug. 19, 5:51 PM
    • While Semtech (NASDAQ:SMTC) beat FQ2 revenue estimates and posted in-line EPS, it's guiding for FQ3 revenue of $110M-$120M and EPS of $0.21-$0.27, below a consensus of $129.5M and $0.29.
    • Enterprise-related sales were strong in FQ2, but demand from Semtech's other three end-markets fell, and the company reiterates sales to Korean smartphone OEMs are weak. Samsung is known to be a major client.
    • Given top-line pressures, gross margin held up fairly well, falling just 40 bps Q/Q and Y/Y to 60.4%. GAAP operating costs/expenses rose 10% Y/Y to $72.5M - job cuts were announced in mid-July.
    • Shares have fallen to $15.50 after hours. Various analog/mixed-signal peers have also issued soft Q3 guidance in recent weeks. However, with the midpoint of Semtech's revenue guidance range implying a 23% Y/Y sales drop, its outlook also implies share loss.
    • FQ2 results, PR
    | Wed, Aug. 19, 5:51 PM | Comment!
  • Tue, Aug. 18, 2:23 PM
    • Having already felt the effects of a string of downbeat earnings reports, chip stocks are underperforming today amid a 0.5% drop for the Nasdaq. The Philadelphia Semi Index (SOXX -1.7%) is near its 2015 lows, and now down 9% YTD. Fresh Chinese macro fears - the Shanghai and Shenzhen exchanges both fell sharply overnight - could be playing a role.
    • Micron (MU -4.9%), 4 days removed from hosting its analyst day and 1 day removed from seeing a slew of analysts respond, is among the names down strongly. BofA/Merrill downgraded NAND flash rival SanDisk and NAND controller vendor Silicon Motion to Underperform this morning, which citing Micron and SK Hynix's capex plans - Hynix says it's thinking of spending $39B on fab investments.
    • Other major decliners that are tied to the industry include Skyworks (SWKS -5.3%), Qorvo (QRVO -3.6%), IDT (IDTI -6.3%), AppliedMicro (AMCC -4.3%), ChipMOS (IMOS -4.3%), Rambus (RMBS -3.8%), Silicon Labs (SLAB -3.1%), Semtech (SMTC -3.5%), MagnaChip (MX -4.4%), and Amkor (AMKR -3.6%).
    • Needless to say, multiples for many hard-hit names have come down considerably over the last two months.
    | Tue, Aug. 18, 2:23 PM | 29 Comments
  • Tue, Jun. 23, 6:07 PM
    • NiSource spinoff Columbia Pipeline Group (CPGX) is taking Allegeheny Technologies' (NYSE:ATI) spot in the S&P 500. Allegheny will join the S&P MidCap 400.
    • Also joining the S&P 400: Casey's General Stores (NASDAQ:CASY), Graham Holdings spinoff Cable One, DuPont spinoff Chemours, and the post-spinoff Energizer (NYSE:ENR).
    • Getting dropped to the S&P SmallCap 600 from the 400: Unit Corp. (NYSE:UNT), Harsco (NYSE:HSC), and Semtech (NASDAQ:SMTC).
    • Also joining the S&P 600: Nektar (NASDAQ:NKTR), Masco spinoff TopBuild, and the new/post-spinoff Gannett (NYSE:GCI). Gannett's broadcast/digital spinoff Tegna (Pending:TGNA) will have old Gannett's spot in the S&P 500.
    • Getting dropped from the S&P 600, and not moving up: Aeropostale (NYSE:ARO), Paragon Offshore (NYSE:PGN), PetroQuest (NYSE:PQ), Quiksilver (NYSE:ZQK), and FXCM.
    • Leaving the S&P 400, and not moving elsewhere: Peabody (NYSE:BTU) and AOL (acquired by Verizon).
    • ATI -1% AH. UNT -0.7%. ARO -1.1%. PQ -1.9%. BTU -1.1%. NKTR +5.2%.
    • Press Release (.pdf)
    | Tue, Jun. 23, 6:07 PM | 1 Comment
  • Thu, May 28, 12:47 PM
    | Thu, May 28, 12:47 PM | 2 Comments
  • Wed, May 27, 5:15 PM
    • After coming off a halt, Semtech (NASDAQ:SMTC) has fallen to $22.00 in AH trading thanks to its FQ1 miss and soft guidance. The analog/mixed-signal chipmaker expects FQ2 revenue of $120M-$130M and EPS of $0.21-$0.26, below a consensus of $141.7M and $0.37.
    • The FQ1 miss is blamed on "much lower than anticipated demand" from Semtech's biggest smartphone customer. FQ2 sales guidance appears to imply share loss, given it translates to a 14% Y/Y revenue decline at the midpoint.
    • To help soften the blow, Semtech has upped its buyback authorization to $100M; $20M was spent on buybacks in FQ1.
    • Shares rose 5.4% in regular trading, aided by the Broadcom/Avago report.
    • FQ1 results, PR
    | Wed, May 27, 5:15 PM | Comment!
  • Wed, May 27, 3:00 PM
    • Chip stocks are posting outsized gains (SOXX +4%) amid a 1.3% increase for the Nasdaq after the WSJ reported Avago and Broadcom are in advanced merger talks, sparking hopes for further M&A.
    • A Broadcom/Avago deal would be worth ~$67B at current valuations, easily making it the largest in the chip industry's breathless consolidation wave. It would also touch markets ranging from smartphones to set-tops to servers to switches/routers.
    • Notable gainers include Avago RF chip peers Skyworks (SWKS +4.3%), Qorvo (QRVO +3.2%), and Anadigics (ANAD +4.9%). Others include Micron (MU +3.8%), SanDisk (SNDK +4.3%), NXP (NXPI +3.5%), Silicon Motion (SIMO +8.3%), Cirrus Logic (CRUS +4.8%), STMicroelectronics, (STM +3.4%), Synaptics (SYNA +3.4%), Atmel (ATML +2.8%), Cavium (CAVM +4.5%), Intersil (ISIL +4.6%), Semtech (SMTC +3.9%), ON Semi (ON +3.8%), Microsemi (MSCC +4.4%), and IDT (IDTI +4.2%).
    • Non-chipmakers tied to the industry are also doing well. Standouts include ARM (ARMH +4.4%), Amkor (AMKR +4.6%), ASML (ASML +3.1%), and Rambus (RMBS +3.3%).
    | Wed, May 27, 3:00 PM | 41 Comments
  • Fri, Apr. 24, 2:03 PM
    • Though the Nasdaq is up 0.7% thanks to market-pleasing earnings from Google, Microsoft, and Amazon, chip stocks (SOXX -2.1%) are adding to their Thursday losses after Freescale, Altera, Microsemi, and Maxim joined the ranks of chipmakers offering soft Q2 guidance; Texas Instruments, Xilinx, and Qualcomm did so on Wednesday afternoon.
    • NXP (NXPI -4.3%), set to merge with Freescale in a cash/stock deal, is selling off ahead of its April 29 Q1 report. RF chipmakers Skyworks (SWKS -3.8%), Qorvo (QRVO -4.4%), and Avago (AVGO -5.2%) are also seeing steep declines.
    • Other decliners include a slew of telecom/networking, microcontroller, and analog/mixed-signal chipmakers. The group includes Marvell (MRVL -3%), ON Semi (ON -6.9%), Atmel (ATML -3.3%), Cypress (CY -4%), Lattice (LSCC -3.9%), Semtech (SMTC -6.9%), Cavium (CAVM -6%), PMC-Sierra (PMCS -2.9%), InPhi (IPHI -3.8%), and Silicon Labs (SLAB -2.9%). Chip packaging/testing firm Amkor (AMKR -5.7%) is also off; its Q1 report arrives on Monday.
    • As was the case with TI and Xilinx, soft telecom equipment chip demand was often blamed by those guiding light yesterday afternoon. Freescale (FSL -3.5%) stated it expects network processor division sales to be down Q/Q and RF (base station power amplifier) division sales to be flat. Microcontroller, automotive, and analog and sensor division sales are expected to rise.
    • Altera (ALTR -3.3%) stated its "telecom and wireless business, and particularly our wireless business globally looks to be quite weak in [Q2], while the rest for our business will in aggregate be flat to slightly up." Regarding its Q1 miss, the company notes "Industrial, test, compute and storage, and to a lesser extent military, fell short of our forecast" (share loss to Xilinx?).
    • Maxim reports seeing "broad-based softness in communications infrastructure demand" and soft industrial bookings to go with healthier mobile/auto demand. The Galaxy S6 appears to be giving a lift to Maxim's mobile sales.
    | Fri, Apr. 24, 2:03 PM | 1 Comment
  • Tue, Apr. 14, 2:01 PM
    • TowerJazz (NASDAQ:TSEM) has begun ramping production for several new product families offered by analog/mixed-signal chipmaker Semtech (SMTC -2.2%). The chips are being made at TowerJazz's Fab 2 (uses 200mm wafers).
    • TowerJazz is less than a dollar away from a 52-week high of $18.29. Semtech is off on what has been a moderately weak day for chip stocks.
    | Tue, Apr. 14, 2:01 PM | Comment!
  • Fri, Mar. 27, 10:34 AM
    • Raymond James has downgraded analog/mixed-signal chipmakers Diodes (DIOD -4.7%) and Semtech (SMTC -4.9%) to Outperform from Strong Buy, and peer Power Integrations (POWI -3%) to Market Perform from Outperform.
    • All three companies sold off on Wednesday amid a chip stock rout that some blamed on cautious remarks from TSMC about near-term demand. Semtech fell earlier this month due to the light FQ1 guidance provided with an FQ4 beat.
    | Fri, Mar. 27, 10:34 AM | Comment!
  • Thu, Mar. 5, 12:45 PM
    | Thu, Mar. 5, 12:45 PM | Comment!
  • Wed, Mar. 4, 5:36 PM
    | Wed, Mar. 4, 5:36 PM | 3 Comments
  • Wed, Mar. 4, 5:07 PM
    • Though Semtech (NASDAQ:SMTC) beat FQ4 estimates, it's guiding for FQ1 revenue of $130M-$136M and EPS of $0.27-$0.30, below a consensus of $136.4M and $0.37.
    • The analog/mixed-signal chipmaker also announces it's buying Triune Systems, a maker of wireless charging, power management, and battery charger chips, for $45M in cash + performance earn-outs. The deal is expected to be financed via Semtech's credit line, and be slightly accretive in FY16 (ends Jan. '16).
    • Shares have fallen to $28.00 AH.
    • FQ4 results, PR
    | Wed, Mar. 4, 5:07 PM | Comment!
  • Thu, Jan. 8, 4:18 PM
    • Hit hard on Tuesday amid a market rout, chip stocks have more than made up for it today: The Philadelphia Semi Index (SOXX +3%) handily exceeded the Nasdaq's 1.8% gain. The index posted a 1% gain yesterday.
    • Micron (MU +4.9%) has been one of the standouts, more than recouping yesterday's post-earnings losses. Ditto Freescale (FSL +9.2%), which benefited from a Deutsche target hike, and Marvell, which got a lift from an MKM note. Others: NVDA +3.8%. NXPI +4.7%. AVGO +5%. SWKS +4.5%. CY +6.1%. CODE +5.9%. CAVM +5.2%. SWKS +4.5%. SLAB +4.5%. KLIC +3.8%. SMTC +3.6%. ATML +3.7%. FCS +4.2%. TSEM +4.2%.
    • As is their custom, both chipmakers and their clients have been unveiling plenty of new products at CES.
    | Thu, Jan. 8, 4:18 PM | 7 Comments
  • Nov. 26, 2014, 2:52 PM
    • Chip stocks are outperforming after Analog Devices (ADI +5.2%) beat FQ4 estimates and offered in-line FQ1 guidance. The Philadelphia Semi Index (SOXX +1.9%) has made new highs.
    • Notable gainers include many analog/mixed-signal and telecom IC firms: TXN +3%. LLTC +2.7%. SMTC +3.1%. ISIL +3.3%. SWKS +3.7%. AVGO +2.9%. OVTI +3.2%. FSL +3.1%. EZCH +2.5%. XLNX +2.3%. ALTR +2.1%. MX +4.3%. PMCS +2.7%. BRCM +2%.
    • On its CC (transcript), ADI noted its telecom equipment chip sales are holding up well in spite of weak capex, aided by the fact its dollar content for 4G base stations is "at least 20% to 30% better" than for 3G base stations. The company also mentioned its lead times were stable in FQ4.
    | Nov. 26, 2014, 2:52 PM | 3 Comments
  • Nov. 19, 2014, 5:38 PM
    • Top gainers, as of 5:15 p.m.: CZR +16.2%. WSM +6.8%. CANF +6.0%. CLD +4.6%. SBGL +3.8%.
    • Top losers, as of 5:15 p.m.: JMEI -10.5%. SMTC -4.5%. CRM -4.3%. IRT -4.2%. HI -3.3%.
    | Nov. 19, 2014, 5:38 PM | Comment!
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Company Description
Semtech Corp designs, develops and markets products for commercial applications, the majority of which are sold into the enterprise computing, communications, high-end consumer and industrial end-markets.