Portable, wireless growth boosting Semtech results. (Investments & Finance).Growing demand for portable computers and personal digital assistants is helping to boost sales and earnings at Semtech Corp. The Camarillo-based analog semiconductor maker finished 2002 with a profit of $42.2 million or $0.54 per share on sales of $193 million, compared to a year earlier when it reported earnings of $26 million or $0.33 per share on sales of $191.2 million. Semtech's performance is the result of growing demand in the laptop, cell phone and PDA (Personal Digital Assistant) A handheld computer for managing contacts, appointments and tasks. It typically includes a name and address database, calendar, to-do list and note taker, which are the functions in a personal information manager (see PIM). markets, said Semtech CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jack Poe. "The use of power, protection and human input devices in notebook, cellular phone and other portable applications is gaining traction and now represents 44 percent of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight ," Poe said. Semtech makes analog and mixed-use chips for laptop computers, cell phones, PDAs and other devices. It also makes power supplies, computer keyboard encoders and related electronic components. Semtech had targeted much of its sales activity to the desktop PC market, but when the market for those computers began to decline in 2000, the company switched its focus to portable computers and wireless products. In the most recent quarter ended in January, Semtech said that sales for cellular phone applications were the largest source of revenue for the company, followed by applications for notebook computers A laptop computer that weighs in a range from five to seven pounds. The term originated when laptops were routinely more than 10 pounds, and those that became lighter were placed in a special "notebook" category. In practice, notebook computer and laptop computer are synonymous. , PDAs and desktop computers. The fourth quarter, however, was relatively flat against last year. For the period ended Jan. 26, 2003, Semtech reported $8.1 million or $0.11 per share in net income on $44.5 million in sales. That compares with net income of $8.7 million or $0.11 per share on sales of $46.4 million for the same period in the prior year. After the release of its quarterly and year end numbers on Feb. 25, however, Semtech's stock price rose $1.13 or 8 percent to $13.40 a share. Over the past 52 weeks, the company's stock has traded as high as $39.12 and as low as $8.72. On Friday, March 14, shares in Semtech closed at $15.32. Louis Gerhardy, an equity analyst with Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. in San
Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , said Semtech' s overall improved performance was the
result of refocusing Noun 1. refocusing - focusing againfocalisation, focalization, focusing - the act of bringing into focus its efforts from the desktop PC market and into wireless, PDA and laptop products. "Manufacturers recognize that the public wants these portables and they are doing everything possible to provide them and it provides this growing market for people like Semtech," Gerhardy said. Likewise, Lauren Fine, an analyst with Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. , said the company is well positioned for steady growth as the portable computer market continues to expand. Semtech also initiated a cost-cutting program last year, eliminating is wafer manufacturing plants in Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern and Texas and making other cuts in its workforce throughout the operation. Gerhardy said those cuts also helped to improve the company's bottom line. Gerhardy expects to see continued improvement in the company's financial results throughout the year, but he added that much will depend on the success of Intel's next-generation bundled chipset A group of chips designed to work as a unit to perform a function. For example, a modem chipset contains all the primary circuits for transmitting and receiving. A PC chipset provides the electronic interfaces between all subsystems (see PC chipset for illustration). , which uses Semtech components. As with most other companies, a war with Iraq could also affect the Semtech's future performance, Gerhardy said. Semtech is positioning itself to sustain its sales momentum, particularly in the portable computer, cell phone and PDA markets, with an aggressive marketing strategy, the company said. Sales projections for the current quarter, however, are flat since the period is traditionally a slow one, the company said. Gerhardy has a target of $22 a share on the stock price. He said revenues for 2003 should increase about 4 percent over last year. "It's modest growth," Gerhardy said, "but in this economy that's a good sign." [GRAPH OMITTED]
Semtech Corp.
Stock Prices
Mar. 14, 2002 $35.88
Mar. 14, 2003 $15.32
Note: Table made from line graph
YEAR (Jan. 26) 2002 2001
Revenue (millions) $193.0 $191.2
Cost of Sales (millions) 83.1 97.9
Operating Expenses (millions) 67.0 66.3
Operating Income (millions) 42.9 27.0
Net Income (millions) 42.2 26.0
Earnings Per Share $0.54 $0.33
SUMMARY Business: Semiconductor maker Headquarters: Camarillo CEO: Jack Poe Market Cap: $1.1 billion Dividend Yield: N/A * Total Liabilities: $267.1 million P/E P/E See: Price/earnings ratio : 28.0 Long-Term Debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. : $242.0 million * Semtech does not pay dividends. |
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