Investing.com -- Shares in Semtech plunged more than 10% in after-hours trading after the California-based mixed-signal semiconductor company posted worse than expected quarterly earnings on Wednesday.
The company, which sells proprietary solutions and breakthrough technology in power management, protection, human interface and advanced communications, as well as wireless and sensing products, reported on a net loss of $142,000 during the quarter. By comparison, Semtech reported a net loss of $15.4 million or 0.23 during the same period in 2014. Semtech's mild losses in the first quarter amounted to a break-even level when calculated on a per share basis.
Semtech posted earnings per share for non-recurring items of 0.27, just below analysts' forecast of 0.28.
"We saw strong demand from our enterprise computing and communication end-markets driven by the datacenter and PON market segments. However, demand from our largest smartphone customer was much lower than anticipated, leading to results that were at the lower end of our guidance range," Semtech CEO Mohan Maheswaran said in a statement.
In addition, Semtech saw its sales drop to $130.1 million for the quarter that ended on April 26, from $130.4 million during the same quarter in 2014.
The company offered a forward guidance of $120 to $130 million for the current quarter or an EPS of 0.21-0.26, below analysts' expectations of $141 million or 0.37 EPS.
"Our numerous growth engines have very good momentum. Notably, demand for our LoRa™ wireless platforms targeted at the Internet of Things market is seeing an acceleration as LoRa is a perfect fit for several emerging segments including smart cities and smart buildings." Maheswaran said.
Shares in Semtech fell to 22.01 in after-hours trading, before slightly rebounding to 22.50, down 2.12 or 8.61%.