Semtech Corp. in Newbury Park reported net sales of $25.5 million for the second quarter, compared with $24.5 million for the same quarter of last year.
Net income for the semiconductor company, before a restructuring charge, was $2.5 million or 16 cents per diluted share. Net income after the restructuring charge was $838,000 or 5 cents per diluted share. This compares with net income of $3.6 million or 24 cents per share a year earlier.
Despite entering the second quarter with a higher 90-day backlog than the previous quarter, expected business failed to materialize during the latter half of the period. The company's automated-test-equipment business represented the most significant decline in second-quarter orders.
New orders from communications customers remained strong throughout the quarter, company officials said. Computer-related orders were weak early in the quarter but improved in the last four weeks of July.
"Market conditions during the second quarter were difficult," said Jack Poe, chairman and chief executive officer. "Our automated-test-equipment business proved to be the most significant reason for our sequential decline in revenues. We currently expect this portion of our business to be flat in the third quarter, with improvement possible late in the fourth quarter or during the first quarter of next year."
During the second quarter, Semtech eliminated approximately 60 manufacturing positions and consolidated its integrated-circuit production into the company's Santa Clara location and outside foundries.
During the second quarter, Semtech introduced 10 new product families.