Analysts' Upgrades, Downgrades: Semtech

The numbers: Fiscal first-quarter revenue fell 19% to $60 million as net income plummeted 39% to $4.9 million and earnings per share dropped 38% to 8 cents. The company has $248 million of cash on its balance sheet, amounting to a high quick ratio of 8.33 and has no debt or interest expenses. The net margin has fallen 263 basis points since the prior year's first quarter, but remains strong at 8.2%. Semtech said net sales for the second quarter, which ends July 26, will increase 4% to 8% from the previous three months.

The stock: Semtech has surged 42% in 2009, outperforming all major indexes, and trades at a high price-to-earnings ratio of 29. The company doesn't pay dividends and has a market capitalization just under $1 billion.

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