(RTTNews) - Semtech Corp. (SMTC), a high-performance semiconductor provider for AI data centre networking and intelligence, connected IoT devices, announced financial results for its second quarter of fiscal year 2027, which ended July 26, 2026, reporting a return to profitability from a loss in the prior-year period. On an adjusted basis, earnings improved.
In addition, the company provided an outlook for the third quarter of fiscal year 2027.
For the second quarter, adjusted net income increased to $69.5 million or $0.71 per share from $36.7 million or $0.41 per share in the prior year.
The company reported a profit of $160.1 million, or $1.59 per share, compared to a loss of $27.1 million, or $0.31 per share, in the prior year.
Semtech reported a $101.4 million income tax benefit during the quarter, up from $4.8 million in the prior year, boosting net income.
Adjusted EBITDA rose to $91.1 million from $56.5 million in the year-ago period.
Net sales increased to $341.9 million from $257.6 million in the prior year.
Looking ahead to the third quarter of 2027, the company expects adjusted earnings per share to be $1.05 +/- $0.03. This compares to adjusted earnings of $0.48 per share in the year-ago period.
Adjusted EBITDA is expected to be $134.3 million +/- $4. This compares to adjusted EBITDA of $62.7 million reported in the year-ago period.
SMTC has traded between $55.18 and $177.35 over the last year. The stock closed Tuesday's trade at $127.52, up 5.47%.
In the overnight market, SMTC is up 4.61% at $133.40.