Morgan Keegan Reports on Semtech

Morgan Keegan commented on Semtech SMTC in a report released today. In the report, Morgan Keegan was positive in its assessment of the company. Morgan Keegan writes, "SMTC reported EPS of $0.45/ $122.4 million beating Street expectations of $0.43/$119.1 million. Growth was driven by the high-end consumer and communication segments which were up 15% and 8% (sequentially) respectively. Gross margin was 60.6% vs our expectation of 60.5%. Guidance was solid at $0.47-0.49/ $127-131 million vs consensus expectations of $0.46/$124.7 million. SMTC expects solid performance from its high end consumer and communication businesses again in the July quarter. Within communication both the optical as well as the advanced timing products are seeing strength. Gross margin is expected to be flat to slightly up." Shares of Semtech closed at $27.29 on Thursday, down from $26.86 at the opening bell.