UPDATE 1-Semtech Q3 beats Street, sees weak Q4 revenue

Wed Dec 1, 2010 5:00pm EST

* Q3 adj EPS $0.48 vs est $0.46

* Q3 rev $123.1 mln vs est $122.1 mln

* Sees Q4 adj EPS $0.39-$0.43 vs est $0.42

* Sees Q4 rev $110-$116 mln vs est $116.7 mln

* Shares down 4.2 pct after mkt

Dec 1 (Reuters) - Semtech Corp (SMTC.O) posted better-than-expected quarterly results on higher gross profit margins, but forecast fourth-quarter revenue below Wall Street, sending the chipmaker's shares down 4.2 percent.

For the fourth quarter, the Camarillo, California-based company sees adjusted earnings of 39-43 cents a share, on revenue of $110-$116 million.

Analysts were expecting on average earnings of 42 cents a share, excluding items, on revenue of $116.7 million, according to Thomson Reuters I/B/E/S.

Semtech, which manufactures analog and mixed-signal semiconductors, competes with Linear Technology Corp (LLTC.O), Maxim Integrated Products (MXIM.O), National Semiconductor Corp (NSM.N) and Texas Instruments Inc TXN.N in the same space.

For the August-October quarter, the company earned $23.6 million, or 37 cents a share, from a loss of $20.9 million, or 34 cents a share, a year ago. Excluding items, it earned 48 cents a share.

Revenue for Semtech, which acquired privately held Sierra Monolithics Inc last year, rose 63.8 percent to $123.1 million.

Analysts expected earnings of 46 cents a share, excluding items, on revenue of $122.1 million, for the third quarter.

Gross profit margin for the third quarter was 60 percent compared to 55.1 percent, last year.

Shares of the company, which counts Samsung Electronics Co Ltd (005930.KS) and Frontek Technology Corp as its customers, were down $1.02 at $23.01 in trading after the bell. The stock which closed at $24.03 on Wednesday on Nasdaq, has almost doubled in value since the last year. (Reporting by Siddharth Cavale in Bangalore; Editing by Jarshad Kakkrakandy)

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