Semtech Corp. (Newbury Park, CA) reaffirmed its second-quarter earnings guidance of $0.06 to $0.07 per share, before charges, on revenues of $38.0 to $40.0 million. The company will take a $14.0-million charge in the second quarter for the write-down of inventory and the discontinuation of certain commodity and application-specific standard products.
Semtech Chairman and CEO Jack Poe commented, “In the first three months, Semtech’s outlook for second-quarter revenue has been reduced by approximately 50 percent to our current outlook. This is consistent with the highly publicized weakness in the overall industry. We have aggressively reduced manufacturing rates to account for the lowered revenue forecasts, and our inventories have now been critically appraised and scrutinized given our outlook.”