SEMTECH SALES RISE DESPITE TOUGH TIMES.

NEWBURY PARK - Cool heads in troubled economic times allowed Semtech Corp. to report Thursday that the company will meet its sales growth target and continue its stock-buyback program.

Representatives of the semiconductor firm predicted that sales would increase by 5 percent in the third quarter, allowing for earnings of 9 cents per share, in a set of moves analysts attributed to sharp management. Additionally, the board authorized an additional $50 million for stock buyback, bringing the target to $100 million. Representatives declined to comment on the program, citing corporate policy.

The news puts Semtech on firm footing, according to analysts familiar with the firm.

``Fundamentally speaking, Semtech is likely the strongest story in semiconductors in the near term, and there's no doubt this is a great long- term story, too,'' said Doug Lee, a senior analyst for Banc of America securities.

``The key thing is they understand their business,'' Lee said. ``A few months ago, they took a hatchet to the forecast, so now they can beat that a little.''

Semtech's gains come amid a general slowdown across the semiconductor industry, which forced Silicon Valley's Applied Materials Inc. on Thursday to announce 2,000 layoffs.

Woody Calleri, a senior semiconductor analyst for Midwest Research, said Semtech's customer service also played a key role in meeting sales goals.

``They went to their customers to see what they really need,'' he said. ``When you work closely with them, you get rewarded for it.''

Semtech's stock, which nose-dived from $58.50 to $15 in December, closed Wednesday at $28.70, down $1.81.