Semtech's ( SMTC) shares were under pressure Wednesday morning, a day after the company posted a year-over-year decline in sales and profits and cautioned that its second-quarter earnings might come in below Wall Street's expectations. The company, a supplier of analog and mixed-signal semiconductors, said sales for the first fiscal quarter fell to $44 million from $49.2 million in the same period a year ago. Earnings dropped to $8.3 million, or 11 cents a share, from $10 million, or 13 cents a share, in the year-ago quarter. Sales for the fourth quarter of fiscal 2003 were $44.5 million and net income was $62,000. Analysts polled by Thomson First Call were expecting a profit of 11 cents and sales of around $45 million. Semtech's stock was falling $1.57, or 9.3%, to $15.33, and volume was much heavier than normal. Semtech said shipments of all product lines, except for test and measurement and desktop power management, increased sequentially in the first quarter. Portable power management sales rose 11% sequentially and more than doubled from the prior year. Protection product sales in the first quarter climbed 9% from the prior quarter, and advanced communications product sales grew 27%. New orders in the first quarter were up slightly over the prior quarter. The company said new orders trends "suggest there will be improved growth opportunities in the second half of fiscal year 2004. We expect continued strength in portable applications and improvements in the desktop, ATE and telecom end-markets to begin late in the second quarter." Semtech also said the "expected improvement in second-half conditions is broad-based, including assumed higher rates of growth from several newer product lines." Semtech estimated that sales for the second quarter will be flat to up 2% from the first quarter, and the company projected earnings 9 cents or 10 cents a share. Analysts expect a top line of $47.7 million and a profit of 11 cents.