Shares of the company were recently 2.6% lower in after-hours trading.
Semtech said after the bell Tuesday that net income for the quarter ended Jan. 30 fell to $12.1 million, or 16 cents a share, from $12.5 million, or 16 cents a share a year earlier.
Sales rose 6% to $58.4 million.
The results were essentially in line with a Thomson First Call consensus of earnings of 16 cents a share and sales of $59 million.
"The ongoing inventory correction that has impacted the electronics supply chain led Semtech to reduce its inventory levels in the fourth quarter," said President and CEO Jason Carlson. "While the company's aggressive reduction in inventory, and related lower overhead utilization rates, negatively impacted the operating margin in the fourth quarter, we enter the new fiscal year with a comfortable level of inventory. We expect demand should improve as the year progresses, especially in the seasonally stronger second half."
For the first quarter, however, Semtech expects sales will fall about 5% from the fourth quarter. The company expects to earn 14 cents a share. First Call had expected the company to earn 16 cents a share on sales of $59.1 million.