Semtech (NASDAQ:SMTC) had a spark in early Thursday trading despite offering a fiscal third-quarter forecast late Wednesday that calls for a loss of nine cents to 22 cents a share on revenue of $190 million to $210 million. Analysts had estimated it would earn 12 cents on revenue of $247.7 million during the period. In the second quarter, the company earned 11 cents a share, after adjustments, exceeding analysts’ expectations of two cents per share.
The company's quarterly cloud data center net sales grew 114% sequentially, while its high-end consumer net sales grew 58% sequentially.
"In the recent quarter, our net sales aligned with our projections and our non-GAAP gross margin and earnings per share each exceeded our estimates, largely due to focused cost-saving initiatives," CEO Paul Pickle said in a statement .
SMTC CEO Pickle said the company remained "cautious given the current challenges of broader economic uncertainties and high channel inventory."
In the third quarter, net sales are expected to be in the range of $190.0 million to $210.0 million. GAAP Gross margin is expected to be in the range of 41.5% to 44.0%.
SMTC shares nicked ahead $1.14, or 5%, to $24.01.
