Semtech Corp. - SMTC
SMTC pulls a Friday night special
Investors typically frown on companies making any earnings-related announcements after the market close on a Friday, and they tend to punish those companies accordingly (even more so over a holiday weekend). Today should be no different for shares of SMTC.
Semtech (SMTC) decided to announce after the close on Friday that their CopperEdge products used in active copper cables (which are used to connect server racks in data warehouses among other locations) were ramping up slower than previously imagined and that there would be no expected ramp through at least FY2026 either (which started last week).
On the bright side they expect multiple customers will be including CopperEdge products in future server rack designs and installations.
The entire 8-K is here.
Back in September, you may recall, I put together a rather long and rambling piece on SMTC (the beginning at least was really rambling), with the main thrust of the thesis (and there was one) being why I believed that the current strength in revenues was related more to gains from an old acquisition rather than any of the company’s new products. Here’s the link.