Semtech tops 2Q estimates, sets stock split

Semiconductor manufacturer Semtech hurdled analysts' estimates in its second quarter Tuesday and announced a 2-for-1 stock split.

In the quarter, the maker of analog and mixed-signal chips earned $13.7 million, or 36 cents a share, on sales of $60.6 million.

First Call Corp. consensus expected it to earn 34 cents a share in the quarter.

Ahead of the earnings report, Semtech (Nasdaq: SMTC) shares closed up 3/8 to 98.

The $60.6 million in sales represents a 59 percent improvement from the year-ago quarter when it pocketed $6.2 million, or 18 cents a share, on sales of $38.3 million.

In the quarter, new orders jumped 16 percent from the first quarter.

Company officials credited strong demand from communications and industrial customers for the upside surprise.

CEO Jack Poe said the company expects to achieve double-digit sales growth in the third quarter.

"The growth in sales and expansion in gross margin is a direct reflection of our investment in new products for the communications and portable equipment markets," Poe said in a prepared release. "We are also benefiting from broad strength in the automated test equipment market, driven by the need for higher pin count, higher performance testers."

Semtech officials said shareholders of record on Sept. 5 will receive an additional share. Semtech shares last split 2-for-1 in September.

Last quarter, Semtech topped analysts' estimates, earning $12.1 million, or 32 cents a share, on sales of $57.4 million.

Its shares raced up to a 52-week high of 102 1/4 earlier this month after falling to a low of 29 3/4 in October.

Five of the six analysts tracking the stock rate it either a "buy" or "strong buy."