Semtech Beats Estimates by a Penny

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Semiconductor maker

Semtech

(SMTC) - Get Report

reported third-quarter earnings Thursday that beat analysts' estimates by a penny amid record sales and growing margins.

Net income rose to $16.8 million, or 22 cents a share, from $8.4 million, or 12 cents a share, reported in the year-ago period. Six analysts surveyed by

First Call/Thomson Financial

forecast earnings of 21 cents a share.

Sales rose 47% from last year's third quarter to $69 million.

Shipments of proprietary products reached 75% of sales during the quarter, allowing gross margins to improve 170 basis points over the previous quarter and 410 basis points over last year's third quarter.

Semtech, which makes chips for communications, computers and industrial systems, expects 50% revenue growth for the year ending Jan. 29, 2001, based on current backlog and forecasts from customers. Revenue for the fourth quarter is expected to increase 7% to 9% from the third quarter.