Semtech Expects 20% Fall in 1st-Quarter Earnings

Semtech Corp. shares fell 10% after the semiconductor company announced that it expects its fiscal first-quarter earnings to fall about 20% from the fourth quarter’s $2.55 million.

The Newbury Park-based company blamed the recent softness in demand for semiconductor chips and excess inventory at several of its foundry customers.

The company also said it expects sales for the current quarter ending April 28 to decline 10 to 15% from the fourth quarter’s $17.7 million.

In the first quarter a year ago, the company had net income of $1.09 million, or 20 cents a share, on sales of $9.32 million.

Semtech said it expects that business conditions will improve in the second quarter. It also expects its business to grow in the second half of the year.